L&G braces for challenges - Financial Services Recruitment - Emu Consulting

Legal & General has warned of challenges in the year ahead as it posted flat profit for the first three months of 2008.

Figures released in its interim management statement revealed UK new business sales were down marginally from £338m in 2007 to £335m. However, this sector had rallied since the final quarter of 2007 rising 2 per cent from £328m.

Globally, new business sales remained flat, standing at £372m for the first three months of the year, barely rising above on the £368m recorded over the same period in 2007.

Other areas of the business posted encouraging figures with pension buyout sales quadrupling to £722m and annuity volumes rising to £72m from just £17m 12 months ago.

Despite predictions of a rapid fall in Isa sales for the financial year 2007/2008, L&G posted an increase of 33 per cent on the final three months of 2007, with sale values rising from £9m to £12m. Purchases of unit trusts also rose slightly over the same period from £28m to £30m.