Legal & General sees strong profit growth at investment arm

Legal & General said it expects its asset management division to increase profit by up to 10% a year in normal markets.

In an update before a presentation to analysts the FTSE 100 insurer said Legal & General Investment Management (LGIM) has almost £1trn of assets.

LGIM’s strategy comprises broadening investment activities to meet clients’ needs, encouraging savings and “internationalising our core strengths”.

The strategy is expected to generate operating profit growth of 8-10% a year over the medium term, assuming normal market conditions, the company said.

Nigel Wilson, L&G’s chief executive, said the company was stronger for owning a leading asset manager.

"LGIM's long-term success in the UK and growing success internationally have bolstered Legal & General Group's impressive double digit operating profit growth over the past decade,” Wilson said. “The addressable market in global asset management is approximately $80trn [£61trn], providing a huge growth opportunity.”