In its full-year results, the
Post-tax profit meanwhile tumbled more than 40 per cent to £457m, down from £783m last year, on the back of a slump in investment performance which dragged on profit across its divisions.
The fall in operating profit was felt most sharply in the
The firm said it had seen record new pension risk transfer business however after a buy-in offensive over the past year, in which it has scooped up corporate defined benefit pension plans in the
New boss António Simões said in a statement the firm was on track to hit its five-year growth plan despite the slowdown in earnings.
"We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer,
The pension risk transfer marker has been booming as rising interest rates boost the funding position of corporate pension schemes and allow firms to offload their liabilities onto big insurers. L&G has struck bumper deals to absorb schemes including Boots and the British Steel Pension Scheme.
Bosses are now looking to write circa £8bn to 10bn per year of new pension risk transfer deals under typical market volumes in the
He added that the firm was at "the right moment to take a fresh perspective" however as it looked to set out a vision for "profitable and sustainable growth".
(c) 2024 City A.M., source