L&G becomes UK’s first £1trn investment manager
Legal & General has become the UK’s first £1 trillion investment manager following a spate of infrastructure deals last year.
The group said alongside its annual results that money pumped into infrastructure, clean energy, commercial real estate and residential property across British cities by its investment arm and an increase in international assets helped it reach the landmark figure.
Legal & General Investment Management saw assets under management rise 3% to £1.02trn.
Boss Nigel Wilson flagged the negative impact political uncertainty was having on asset prices, but nevertheless said L&G performed strongly.
He said: “2018 saw political uncertainty, asset market declines and slowing economic growth, but we are resilient and performed strongly.
“We became the UK’s first £1trn investment manager, executed a record £9 billion of pension risk transfer deals and invested billions in the UK’s future infrastructure and cities.”
Full-year figures showed that the FTSE 100 company saw operating profit rise 10% to £1.9bn in 2018.
The firm said it was helped by customers dying earlier than expected, or what it called a “heavier than expected mortality experience in 2018”.
L&G released £433 million of cash reserves.
Net profit fell 3% to £1.83bn after the prior year was boosted by a one-off US tax benefit.