L&G bounces back from product slump

LEGAL & General reported better-than-expected sales figures today as it overcame a slowdown in demand for mortgage-related protection products.

The insurer said confidence in the savings and investment market continued to show signs of recovery, following a 47% year-on-year rise in UK sales of life and pensions over the first three months of the year.

The first quarter improvement to £283m came despite some impact from the housing market downturn on demand for life protection products.

L&G said sales of mortgage-related protection business fell to £20m, from £25m in 2004, as the knock-on effect of the weaker property market was only partly offset by the company's widening of its distribution channels.

Chief executive David Prosser said the performance covering the three months to the end of March reflected the company's 'broad spread of good value products', as well as the new distribution agreements, including a recent tie-up announced with Bradford & Bingley.

It added that it remained confident of increasing its market share, which it recently estimated at 9.5% in the UK, compared with 8.6% in 2003.

Mr Prosser added: 'Looking forward to the rest of 2005, we expect to continue to build our market share profitably.'