LEGAL & GENERAL SAVINGS NEW BUSINES GROWTH DRIVEN BY WORKPLACE AND SALES ON IPS PLATFORM.
01 November 2012
Q3 New Business for Legal & General Savings are up 18% on the same period last year.
The increase is due to wins in Workplace non profit Pensions, where several schemes have become premium paying and have transferred assets onto our WorkSave platform (1) and Investor Portfolio Service (IPS), Legal & General’s consumer platform, where strong sales of collective products have been driven through our distribution relationships with building societies (2).
Both platforms achieved record growth in assets under administration with Workplace Savings non profit assets at £5.3bn after net inflows of £429m in Q3 (3) and our IPS Platform passing £8bn (4).
The company expects this trend to continue as several large workplace pension schemes, each with over 40,000 members, are scheduled to auto enrol their employees between now and Q1 2013. It also anticipates further IPS platform growth driven by increased business from building societies and the restricted advice market, which it has predicted will grow strongly after RDR.
Mark Gregory, Legal & General Executive Director Savings said; “Our Savings business has delivered three consecutive quarters of growth with new business APE in Q3, the highest on record. The key drivers for our success are largely driven by our strong business focus on building a diversified customer base. This has created the opportunity for strong performance in two key areas.
Our decision to invest in our workplace savings platform, WorkSave, has created a market leading auto enrolment (AE) delivery system capable of meeting the challenges of AE. This has clearly paid dividends with Workplace Pensions year to date APE at £329m, up 82% versus 2011 (Q3 YTD 2011: £181m).
Secondly, our strategic relationship with bancassurers has boosted sales on our IPS platform, which is the third largest platform in the UK based on customer numbers*. IPS platform year to date APE is £211m, up 33% year-on-year (2011: £159m) demonstrating the strength of our platform capabilities.
The retail market for financial services remains challenging. However, our strong performance for the year to date gives me confidence that our multi distribution channel Savings business will continue to provide growth.
We are ready to become one of the UK’s leading savings providers in the post RDR world and will launch our RDR proposition for advisers during November. In addition, continued workplace expansion is set to drive further growth over coming months.”
Note * - source: PLATFORUM Adviser Guide Q1 2012
Notes to editors
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
1) Recent Workplace Pension auto enrolment mandates include, Marks & Spencer, ASDA Stores, The Co-operative Group, Alliance Boots and Sainsbury’s. There is potential to auto enrol over 500,000 employees in coming the months from our auto enrolment client base.
2) We have sole tie distribution partnerships with Nationwide, Yorkshire, Leeds, Principality, Dudley, Tipton & Coseley, Cambridge and Leek building societies, amongst others, representing 87% of the building society customer base - around 20 million account holders.
3) Workplace Savings assets under administration for Q3 2012 year to date are £5.3bn, up by 39% compared to the full year to 31 December 2011 (£3.8bn). Net inflows have risen by £1.1bn over the year to date to 30 September 2012, with £0.4bn in the last quarter.
4) Total IPS Platform assets, (combined mutual fund and insured assets) are £8.1bn as at 30 September 2012, up 19% on the position at 31 December 2011, which was £6.8bn.
LEGAL & GENERAL SAVINGS is the retail pensions and investments business of Legal & General Group Plc.
The Legal & General Group, established in 1836, is one of the UK’s leading financial services companies. As at 31 December 2011, we were responsible for investing £378 billion worldwide on behalf of investors, policyholders and shareholders. We also had over seven million customers in the UK for our life assurance, pensions, investments and general insurance plans.
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