L&G 2010 Final Results Part 6

New Business

Page 97

6.01 Investment management new business

Increase/

2010

2009

(decrease)

£m

£m

%

Managed pension funds1

Pooled funds

19,898

25,606

(22)

Segregated funds

5,756

3,381

70

Total managed funds

25,654

28,987

(11)

Other funds2

8,932

4,297

108

Total new funds

34,586

33,284

4

Attributable to:

Legal & General Investment Management

33,134

31,485

5

Legal & General Retail Investments

1,452

1,799

(19)

6.02 Investment management new business quarterly progression

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

31.12.10

30.09.10

30.06.10

31.03.10

31.12.09

30.09.09

30.06.09

31.03.09

£m

£m

£m

£m

£m

£m

£m

£m

Managed pension funds1

Pooled funds

3,569

4,009

4,936

7,384

6,742

7,076

5,763

6,025

Segregated funds

490

221

4,777

268

1,344

790

533

714

Total managed funds

4,059

4,230

9,713

7,652

8,086

7,866

6,296

6,739

Other funds2

2,955

1,400

981

3,596

869

1,326

1,382

720

Total new funds

7,014

5,630

10,694

11,248

8,955

9,192

7,678

7,459

Attributable to:

Legal & General Investment Management

6,669

5,307

10,305

10,853

8,450

8,853

7,166

7,016

Legal & General Retail Investments

345

323

389

395

505

339

512

443

1. New monies from pension fund clients of Legal & General Assurance (Pensions Management) exclude £5.9bn (2009: £7.9bn) held through the year on a temporary basis, generally as part of portfolio reconstructions.

2. Includes segregated property, property partnerships, private equity partnerships and institutional clients funds managed by Legal & General Investment Management and institutional investments in unit trust funds managed by Legal & General Retail Investments.

6.03 Legal & General Investment Management new business by investment approach

2010

2009

%

%

Indexed equities

47

49

Indexed bonds (including index linked funds and cash)

24

27

Active bonds (including index linked funds and cash)

12

14

Liability driven investments

15

10

Property

1

-

Active equities

1

-

Total

100

100

New Business

Page 98

6.04 Funds under management

At

At

Increase/

31.12.10

31.12.09

(decrease)

£m

£m

%

Total investments

353,520

315,101

12

Represented by

Index tracking funds:

- UK equities

71,982

68,971

4

- Overseas equities

85,999

73,858

16

- Fixed interest

36,496

36,534

-

- Index linked

33,872

28,245

20

- Cash/deposits

188

695

(73)

Total index tracking funds

228,537

208,303

10

Actively managed funds

84,207

76,860

10

Liability driven investments

40,776

29,938

36

353,520

315,101

12

By investment approach

Index equities

157,981

142,828

11

Index bonds (including index linked funds and cash)

70,556

65,475

8

Active bonds (including index linked funds and cash)

66,564

61,167

9

Liability driven investments

40,776

29,938

36

Active equities

9,137

8,788

4

Property

8,136

6,675

22

Private equity

370

230

61

353,520

315,101

12

By source of business

Institutional funds under management1:

- Managed pension funds pooled

206,400

190,792

8

- Liability driven investments

40,776

29,938

36

- Other

16,772

11,261

49

- Managed pension funds segregated

3,508

4,330

(19)

Total institutional funds under management

267,456

236,321

13

UK businesses (life and general insurance funds)

70,024

65,106

8

UK businesses (unit trusts - excluding life fund investment)

16,040

13,674

17

353,520

315,101

12

1. Excludes institutional investments in unit trust funds.

Funds under management of £11bn (31 December 2009: £19bn) derived from retail investments and additional funds managed overseas, take total worldwide funds under management to £365bn (31 December 2009: £334bn).

New Business

Page 99

6.05 Savings net flows

Increase/

2010

2009

(decrease)

£m

£m

%

Investments

4,149

2,557

62

Insured

476

89

435

With-profits

(1,480)

(898)

65

Total net flows

3,145

1,748

80

6.06 Savings net flows quarterly progression

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

31.12.10

30.09.10

30.06.10

31.03.10

31.12.09

30.09.09

30.06.09

31.03.09

£m

£m

£m

£m

£m

£m

£m

£m

Investments

985

1,106

1,123

935

788

822

417

530

Insured

211

163

74

28

47

(29)

32

39

With-profits

(483)

(369)

(290)

(338)

(457)

(77)

(343)

(21)

Total net flows

713

900

907

625

378

716

106

548

New Business

Page 100

6.07 Worldwide new business

Annual

Single

APE

Annual

Single

APE

Increase/

premiums

premiums

premiums

premiums

(decrease)

2010

2010

2010

2009

2009

2009

£m

£m

£m

£m

£m

£m

%

Protection

 - Individual

118

-

118

123

-

123

(4)

 - Group

57

-

57

57

-

57

-

175

-

175

180

-

180

(3)

Annuities

 - Individual (non profit)

-

1,142

114

-

962

96

19

 - Individual (with-profits)

-

26

3

-

17

2

50

 - Bulk purchase

-

897

90

-

883

88

2

-

2,065

207

-

1,862

186

11

Total Risk

175

2,065

382

180

1,862

366

4

Investments1

26

6,169

643

32

4,092

441

46

Insured business

299

1,795

478

144

1,307

275

74

With-profits

71

608

132

103

879

191

(31)

Total Savings

396

8,572

1,253

279

6,278

907

38

 - USA

52

-

52

49

-

49

6

 - Netherlands

6

124

18

8

142

22

(18)

 - France

22

237

46

14

237

38

21

 - India (26% share)

13

7

14

-

-

-

N/A

 - Egypt (55% share)

10

-

10

-

-

-

N/A

103

368

140

71

379

109

28

France retail investment business

-

60

6

-

56

6

-

Total International

103

428

146

71

435

115

27

Total worldwide new business

674

11,065

1,781

530

8,575

1,388

28

1. Investments excludes institutional investments in unit trust funds which are disclosed as part of institutional fund management new business (see Note 6.01).

New Business

Page 101

6.08 Worldwide new business APE quarterly progression

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

31.12.10

30.09.10

30.06.10

31.03.10

31.12.09

30.09.09

30.06.09

31.03.09

£m

£m

£m

£m

£m

£m

£m

£m

Protection

 - Individual

30

31

29

28

31

32

30

30

 - Group

15

14

14

14

16

11

16

14

45

45

43

42

47

43

46

44

Annuities

 - Individual (non profit)

24

30

33

27

16

22

25

33

 - Individual (with-profits)

2

-

1

-

1

-

1

-

 - Bulk purchase

36

9

30

15

9

5

24

50

62

39

64

42

26

27

50

83

Total Risk

107

84

107

84

73

70

96

127

Investments1

157

143

179

164

134

118

108

81

Insured business

106

182

124

66

66

68

68

73

With-profits

29

27

39

37

34

39

66

52

Total Savings

292

352

342

267

234

225

242

206

 - USA

16

14

13

9

9

11

13

16

 - Netherlands

5

3

4

6

5

4

6

7

 - France

8

6

19

13

7

1

6

24

 - India (26% share)

3

3

2

6

-

-

-

-

 - Egypt (55% share)

2

3

5

-

-

-

-

-

34

29

43

34

21

16

25

47

France retail investment business

1

1

1

3

2

1

1

2

Total International

35

30

44

37

23

17

26

49

Total worldwide new business

434

466

493

388

330

312

364

382

1. Investments excludes institutional investments in unit trust funds which are disclosed as part of institutional fund management new business (see Note 6.02).