L&G 2011 HY Results - Part 6

New Business

Page 101

6.01 Investment management new business

Full year

30.06.11

30.06.10

31.12.10

£m

£m

£m

Managed pension funds1

Pooled funds

12,791

12,320

19,898

Segregated funds

1,893

5,045

5,756

Total managed funds

14,684

17,365

25,654

Other funds2

3,573

4,577

8,440

Total new funds

18,257

21,942

34,094

Attributable to:

Legal & General Investment Management

17,852

21,158

32,642

Legal & General Retail Investments

405

784

1,452

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

30.06.11

31.03.11

31.12.10

30.09.10

30.06.10

31.03.10

£m

£m

£m

£m

£m

£m

Managed pension funds1

Pooled funds

6,712

6,079

3,569

4,009

4,936

7,384

Segregated funds

255

1,638

490

221

4,777

268

Total managed funds

6,967

7,717

4,059

4,230

9,713

7,652

Other funds2

920

2,653

2,863

1,000

981

3,596

Total new funds

7,887

10,370

6,922

5,230

10,694

11,248

Attributable to:

Legal & General

Investment Management

7,764

10,088

6,577

4,907

10,305

10,853

Legal & General Retail Investments

123

282

345

323

389

395

1. New monies from pension fund clients of Legal & General Assurance (Pensions Management) exclude monies 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. Due to the expected volatility of gross new business inflows into the sterling/euro liquidity funds, these have been been removed from the gross new business figures going forward. For consistency, this has led to a reduction of £442m in H1 2011 and £492m in H2 2010.

6.03 Legal & General Investment Management new business by investment approach

30.06.11

30.06.10

31.12.10

%

%

%

Indexed equities

43

43

47

Indexed bonds (including index linked funds and cash)

26

27

24

Active bonds (including index linked funds and cash)

15

9

12

Liability driven investments

15

20

15

Property

1

1

1

Private equity

-

-

-

Active equities

-

-

1

Total

100

100

100

New Business

Page 102

6.04 Funds under management

At 30.06.11

At 30.06.10

At 31.12.10

£m

£m

£m

Legal & General Investment Management funds under management

362,438

320,014

353,520

Other funds under management1

7,900

10,945

11,326

Worldwide funds under management

370,338

330,959

364,846

1. Other funds under management comprises retail investments and additional funds managed overseas.

Legal & General Investment Management's funds under management are analysed below:

Represented by

Index tracking funds:

- UK equities

69,647

61,376

71,982

- Overseas equities

87,271

71,390

85,999

- Fixed interest

38,505

37,971

36,496

- Index linked

35,855

30,642

33,872

- Cash/deposits

1,501

628

188

Total index tracking funds

232,779

202,007

228,537

Actively managed funds

84,743

80,408

84,207

Liability driven investments

44,916

37,599

40,776

362,438

320,014

353,520

By investment approach

Index equities

156,918

132,766

157,981

Index bonds (including index linked funds and cash)

75,861

69,241

70,556

Active bonds (including index linked funds and cash)

67,233

64,507

66,564

Liability driven investments

44,916

37,599

40,776

Active equities

8,826

8,057

9,137

Property

8,307

7,656

8,136

Private equity

377

188

370

362,438

320,014

353,520

By source of business

Institutional funds under management1:

- Managed pension funds pooled

208,895

184,495

206,400

- Liability driven investments

44,904

37,599

40,776

- Other

18,706

14,368

16,772

- Managed pension funds segregated

4,103

3,630

3,508

Total institutional funds under management

276,608

240,092

267,456

UK businesses (life and general insurance funds)

69,735

66,206

70,024

UK businesses (unit trusts - excluding life fund investment)

16,095

13,716

16,040

362,438

320,014

353,520

1. Excludes institutional investments in unit trust funds.

New Business

Page 103

6.05 Savings net flows

30.06.11

30.06.10

31.12.10

£m

£m

£m

Investments

1,703

2,058

4,149

Insured

220

102

476

With-profits

(787)

(628)

(1,480)

Total net flows

1,136

1,532

3,145

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

30.06.11

31.03.11

31.12.10

30.09.10

30.06.10

31.03.10

£m

£m

£m

£m

£m

£m

Investments

804

899

985

1,106

1,123

935

Insured

107

113

211

163

74

28

With-profits

(387)

(400)

(483)

(369)

(290)

(338)

Total net flows

524

612

713

900

907

625

6.07 Worldwide new business

Annual

Single

APE

Annual

Single

APE

APE

premiums

premiums

premiums

premiums

30.06.11

30.06.11

30.06.11

30.06.10

30.06.10

30.06.10

31.12.10

£m

£m

£m

£m

£m

£m

£m

Protection

 - Individual

65

-

65

57

-

57

118

 - Group

29

-

29

28

-

28

57

94

-

94

85

-

85

175

Annuities

 - Individual (non profit)

-

505

51

-

601

60

114

 - Individual (with-profits)

-

11

1

-

10

1

3

 - Bulk purchase

-

240

24

-

447

45

90

-

756

76

-

1,058

106

207

Total Risk

94

756

170

85

1,058

191

382

Investments1

30

3,415

371

15

3,279

343

643

Insured business

121

991

220

114

763

190

478

With-profits

39

317

71

41

351

76

132

Total Savings

190

4,723

662

170

4,393

609

1,253

 - USA

32

-

32

22

-

22

52

 - Netherlands

2

58

8

3

66

10

18

 - France

26

125

38

20

123

32

46

 - India (26% share)

3

13

4

8

2

8

14

 - Egypt (55% share)

3

-

3

5

-

5

10

 - Gulf (50% share)

1

-

1

-

-

-

-

67

196

86

58

191

77

140

France retail

investment business

-

18

2

-

40

4

6

Total International

67

214

88

58

231

81

146

Total worldwide

new business

351

5,693

920

313

5,682

881

1,781

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 104

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

30.06.11

31.03.11

31.12.10

30.09.10

30.06.10

31.03.10

£m

£m

£m

£m

£m

£m

Protection

 - Individual

32

33

30

31

29

28

 - Group

14

15

15

14

14

14

46

48

45

45

43

42

Annuities

 - Individual (non profit)

30

21

24

30

33

27

 - Individual (with-profits)

-

1

2

-

1

-

 - Bulk purchase

22

2

36

9

30

15

52

24

62

39

64

42

Total Risk

98

72

107

84

107

84

Investments1

195

176

157

143

179

164

Insured business

112

108

106

182

124

66

With-profits

35

36

29

27

39

37

Total Savings

342

320

292

352

342

267

 - USA

16

16

16

14

13

9

 - Netherlands

3

5

5

3

4

6

 - France

23

15

8

6

19

13

 - India (26% share)

1

3

3

3

2

6

 - Egypt (55% share)

2

1

2

3

5

-

 - Gulf (50% share)

1

-

-

-

-

-

46

40

34

29

43

34

France retail investment business

1

1

1

1

1

3

Total International

47

41

35

30

44

37

Total worldwide new business

487

433

434

466

493

388

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

New Business

Page 105

6.09 Worldwide new business annual premium quarterly progression

3 months to

3 months to

3 months to

3 months to

3 months to

3 months to

30.06.11

31.03.11

31.12.10

30.09.10

30.06.10

31.03.10

£m

£m

£m

£m

£m

£m

Protection

 - Individual

32

33

30

31

29

28

 - Group

14

15

15

14

14

14

46

48

45

45

43

42

Annuities

 - Individual (non profit)

-

-

-

-

-

-

 - Individual (with-profits)

-

-

-

-

-

-

 - Bulk purchase

-

-

-

-

-

-

-

-

-

-

-

-

Total Risk

46

48

45

45

43

42

Investments1

19

11

7

4

10

5

Insured business

62

59

47

138

81

33

With-profits

17

22

17

13

18

23