Legal & General lifts net cash 14% and plans cost savings

Insurer Legal & General posted a 14% rise in net cash generation for the first nine months of the year as it said it is ahead of its target to deliver £80m of operating cost savings this year.

Net cash generation rose to £943m from £827m in the same period last year, while assets under management at the company’s investment management arm rose 8% to £717bn.

Operational cash generation grew 11% to £936m and net inflows were up 161% from last year at £27.1bn.

The company said the performance reflects improved efficiency and increasing scale in the UK protection and savings business, as well as the implementation of its capital lite strategy for new UK pension risk transfer business.

Chief executive Nigel Wilson said: “Legal & General's scale and growing international business, coupled with strategic clarity and financial discipline, has driven a strong performance, particularly in our asset management businesses.

“External political and regulatory uncertainties remain, but we believe that by aligning our strategy to macro trends we have created a high degree of resilience in our business model and are well positioned for further growth."