Despite a challenging pricing environment with economic uncertainties and high volatility in the capital markets, Legal & General's (L&G) Saving Investments business, which includes structured products, contributed to a 14% growth in net cash generation to £427m up from £373m in the same period last year, said the firm in its H1 2011 results.
L&G's head of business development James Harrington told SRP the firm is pleased with the contribution structured products are playing "in the ongoing success of the savings division" and the overall group: "[We] look forward to building on that success going forward," he said.
According to L&G, its Savings Investments business, which comprises unit trusts, ISAs, structured products and platform business, delivered net cash generation of £12m (H1 2010: £13m) and an IFRS operating profit of £13m (H1 2010: £14m), an increase in sales of 8% compared to last year.
The firm said assets under administration in its Savings Investments division grew by 9% to £25.4bn from £23.3bn at the end of 2010 through a combination of strong fund flows and market movements.
In its conclusions, L&G highlighted counterparty and third-party risks and said the firm will focus on a diversified portfolio risk, savings and investments management businesses to match customers' needs while engaging with regulators to change and influence future regulation.