L&G set to beat cash targets

Life insurer Legal & General is poised to beat its cash generation target for the full year, helped by cost cuts and buoyant sales over the first nine months.

The firm generated 526 million of cash in the nine months to 30 September, putting it on course to exceed its 600m for the year as a whole, the company said yesterday.

L&G has been at the forefront of a drive by the industry to boost cash generation by reducing commission payments to brokers and focusing on less capital-intensive products.

The move has helped allay investor worries about the industry's ability to pay dividends after some insurers cut payouts to preserve capital during the financial crisis.

L&G confirmed that its worldwide sales for the first nine months were up 27 per cent at 1.35 billion.