Life assurer Legal & General has surpassed market expectations with an 8 per cent rise in third-quarter sales and says it is upbeat about a recovery in demand.
Worldwide new business sales of pensions and savings products rose to £226 million sterling, beating analysts' consensus estimate of £208 million. The figures were on an annual premium equivalent basis, a standard measure used to iron out volatility.
Legal & General Chief Executive Mr David Prosser said on this morning that market conditions were beginning to pick up after plummeting earlier this year on the back of the worst bear market in a generation.
He said Legal & General was gaining market share, helped largely through distribution deals with banks such as Barclays and Northern Rock, and the group was continuing to sign new distribution agreements.
Legal & General shares were the top gainer in the blue-chip FTSE 100 index, jumping over 3 per cent shortly after the open but slipping back to trade up 2.4 per cent at 106-1/2 pence by 8:15 a.m. The FTSE was flat and the DJ Stoxx European insurance sector was up 0.32 pe rcent. .
Legal & General shares have almost doubled in value since slumping to 57 pence in March and have outperformed the sector by 60 per cent since the start of the year but are still far from the 150 pence level seen during the bull market.