L&G cashes in on growth of savings in the UK

Insurance and investment group Legal & General will top its full-year targets as more individuals and companies squirrel away money to protect them against the financial chaos.

The firm yesterday reported a 15 per cent rise in net cash generation to £631 million in the nine months to the end of September after its risk, savings and investment management assets all increased.

The group said it expects to generate £900m of cash in 2011, breaking its target of £700m. But shares fell 7 per cent in line with the rest of the insurance sector amid fears over the Greek crisis.

Chief executive Tim Breedon said “We are reaping the benefits of rising individual and corporate prudence as the move from debt to saving continues.”

L&G has been increasing its sales of savings and pensions as UK government cut-backs leave the ageing UK population increasingly dependant on their own savings.