L&G reports 350% increase in first-half buyout business

The life and pensions firm said it had written nearly 140 policies worth £1.4bn over the period – compared with policies worth £400m in the six months to June 30 last year.

L&G group chief executive Tim Breedon said: "The risk business has delivered a record six months of new business."

He added: "Annuities are continuing to see a surge in new business which began in the last quarter of 2007 with the demand for pension buyouts remaining high."

L&G Investment Management also reported strong figures. It said first-half gross inflows were £17.6bn compared to £17.0bn in the same period last year.

It said its structured solutions business had grown funds under management to £15bn – up from £12bn at the start of the year.

L&G said total funds under management for its investment management business were £286bn at June 30.

The firm reported an increase in operating profit on an International Financial Reporting Standards basis of 1pc from £386m in the first half of 2007 to £391m in the first six months of this year.