Our Savings business is split into two areas: digital savings and mature savings. Our mature business looks after an important but declining group of customers who own traditional life-insurance based savings products. Our digital savings business holds our platform Cofunds, the UK’s largest investment platform.
Role and purpose: Our strategy is to develop scalable and efficient platforms to offset the reducing contribution from our mature savings businesses. Retail savings platforms are expected to benefit from the greater flexibility in pensions savings, higher ISA limits and eventually the new Lifetime ISA, announced in the recent budgetary reforms. We continue to enhance our existing functionality and improve our operational efficiency to deliver high quality, low cost savings products to existing and potential customers to capitalise on these trends within Savings and through LGIM.
Percentage of 2015 divisional operating profit: 6% (£99m)
Where we operate: UK
MD: Jackie Noakes
Recent achievements: Our Platforms business delivered net flows of £3.5bn (2014: £5.4bn) resulting in assets under administration (AUA) increasing 7% to £76.9bn. Cofunds continues to lead the market, with a 19% share of UK platform assets. Cofunds delivered a £11m per annum reduction in costs by the end of 2015, targeted at the time of the acquisition.
What we manage: By the end of 2015 our savings business had assets of £108 billion, including £77 billion of assets held on the Cofunds platform.