L&G new business climbs but profits down 26%

The firm says the figure, which fell from £1.23bn, was lower last year due to “major one-off benefits” occurring in 2006. UK life and pensions new business climbed to £1.16bn (APE basis) last year, up on the £1.07bn recorded in 2006. However, UK life and pensions operating profit fell, dropping from £874m to £720m last year. L&G expects 2008 to be a challenging year for the economy and for the industry. “Savings market conditions in 2008 are likely to be more testing than in 2007,” it says. “Equity market volatility coupled with CGT uncertainty may dampen short term market growth.” ...