L&G’s Cofunds deal to lift insurer’s savings pile above £100bn
Legal & General said today its recent move to take over fund supermarket Cofunds will lift assets in its savings arm above £100bn to a new record high when the deal completes.
The blue chip insurer, announcing its latest trading update, said in Q1 the savings business increased sales by 20% to £366m, with assets under administration (AUA) climbing from £70bn to £74bn.
However, the Cofunds acquisition – which cost it £131m – will take AUA well above £100bn, it said.
“Control gives us the ability to leverage the Group’s reputation in operational excellence with cost savings of £11m a year from 2015, with a one-off investment of £17m,” it said.
“Once completed, the acquisition will grow our scale and distribution in the investment platform market. At 31 March 2013 the Savings business had a combined proforma AUA, including Cofunds, in excess of £100bn.”
Elsewhere, the group said sales had come in at £555m for Q1, growth of 28% over the previous year.
Sales in its Protection and Annuity, Savings and US Protection businesses grew by 56%, 20% and 10% respectively.
The group saw net inflows of £5.5bn, up 113% on last year’s Q1 inflows, and this combined with the growth in equity markets increased assets under management to £441bn, up 9% since the end of 2012.
This article was first published on Investment Week.