UK - New institutional business dropped 20% at Legal & General during the third quarter. But overall new business soared.
L&G clinched nearly £3bn of new institutional business in the three months to the end of September against more than £3.7bn in the corresponding period last year.
But L&G remained upbeat and cited market fluctuations over the last few months for the slower growth of new business.
Legal & General group chief executive David Prosser said: “Our investment management business continues to deliver results. Since the beginning of 1998, it has averaged over £1bn of new business a month and has maintained that record in the last quarter despite lower equity market levels.”
Segregated business performed well with L&G winning £796m of new business in the three months to the end of September against £6m in the corresponding period last year.
Pooled business, however, performed badly and new business fell from £3bn in the three months to September 2000 to only £2.1bn during the corresponding period this year – a fall of nearly 30%.
A number of pension schemes have been prompted to lock in gains with a move into bonds after the estimated deficit across FTSE 100 DB pension schemes improved by £36bn, over the 12 months ending 30 June last year, JLT Employment Benefits found.
HM Treasury has agreed in principle to give NEST a £329m contingent liability guarantee in the event of the master trust's wind up or closure.
AMP Capital has set up a dedicated team to help institutional investors, including pension funds, invest in infrastructure through direct equity allocations.