The provider said its retirement business was performing strongly in the pension de-risking and lifetime mortgages space, with customer demand still strong despite uncertainty around Brexit and consistently low interest rates.
The firm’s retirement division is split into two sections; its retail business which helps customers manage their income in retirement and its corporate business which helps defined benefit pension schemes manage their annuity liabilities.
Last month Legal and General revealed it was targeting £500m of lifetime mortgage lending this year, with £231m of lending achieved during the first half of 2016.
The firm entered the lifetime mortgage market last year, after acquiring Newlife Home Finance. It also recently signed a five-year deal with Santander to offer struggling interest-only customers to option to move onto a lifetime mortgage.
Kerrigan Procter, managing director of Legal & General Retirement, said: “Legal & General’s aim is to both create and invest in new real productive assets. This allows us to fulfil pension promises to our customers in an efficient way, deliver attractive risk adjusted returns for our shareholders, and also drive job creation and economic growth which is good for business and customers.
“Customers want more choice in how they fund their retirement, and accessing wealth that is tied up in their home is an attractive solution for asset rich retirees. I expect lifetime mortgages to be even more popular with customers in 2017.”
Legal and General Retirement has written over £1.4bn of business since 30 June and has started to invest in US infrastructure assets, to support its growing US pensions de-risking business.
It said that infrastructure investment formed a “key part” of its annuity portfolio investment strategy, with £6.2bn of this portfolio invested in these assets.
