UK - Legal and General reported strong performance figures for 2007 but admitted it is struggling on Continental Europe.
A spokesman for L&G said that most of the £52.6bn new business for LGIM came from pension fund investment.
In a statement, the company said: "UK corporate and local authority pension funds continued to invest in LGIM's index funds and structured solutions."
The statement continued: "Although the business is showing good momentum and we are confident of further progress in 2008, it is unlikely that this exceptional level of inflows will be repeated."
L&G also reported its bulk purchase annuities (BPA) had a record fourth quarter (Q4) and a record year. Some £62m APE of new business was won in Q4, resulting in £1.12bn (£0.6bn Q4) single premium during 2007.
However, L&G's international business did not fare so well, although APE was up 11% to £114m compared to £103m in 2006, the insurer said "conditions in the Netherlands remained challenging" and it was the US and France that drove business sales growth.
The spokesman said: "The Netherlands remained challenging because of a combination of the competitive market and the challenging regulatory environment."
Tim Breedon, group chief executive, added: "The UK marketplace is likely to prove just as challenging in 2008 as it was in the second half of 2007, with the economy forecast to soften as it digests the credit crunch.
"However, great opportunities exist for us to further strengthen our outstanding new business franchise, and the changes introduced from the capital review will provide excellent support to deliver further profitable growth," Breedon concluded.
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