Reuters: Financial Services and Real Estate: UPDATE 1-Insurer L&G says consumers saving less

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UPDATE 1-Insurer L&G says consumers saving less May 3rd 2012, 06:28 Thu May 3, 2012 2:28am EDT * Q1 total sales 434 mln stg vs f'cst 433 mln * Strong progress at international division LONDON, MAY 3 - British life insurer Legal & General reported flat sales over the first quarter, with a drop in consumer demand for savings products amid faltering economic growth offsetting strong progress at its international division. L&G had total sales of 434 million pounds ($703 million) in the first three months of 2012, little changed from a year earlier, and in line with the 433 million pounds penciled in by analysts in a company poll, it said on Thursday. The 176-year old insurer also said it had generated net cash of 210 million pounds of cash during the period, below the 219 million pounds forecast by analysts. "Despite the challenging economic backdrop we have strong positions in our chosen markets," Chief Executive Tim Breedon said in a statement. Sales of savings products fell 6 percent as consumers retrenched in the face of stalling economic growth, counterbalanced by a 37 percent jump in revenues at L&G's operations in the United States, the Netherlands, and France. L&G, Britain's fourth-biggest insurer by market value, has been at the forefront of an industry drive to boost cash generation by reducing commission payments to brokers and focusing on products that require lower capital reserves. L&G shares closed at 120.5 pence on Wednesday, valuing the company at about 7 billion pounds. The stock has risen 18 percent since the start of the year, putting it among the best performers in the Stoxx 600 European insurance index, which has risen 6 percent. Link this Share this Digg this Email Reprints

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