Savers help Legal & General to smash full-year targets

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The insurance and investment group Legal & General said it will smash full-year targets as more individuals and companies squirrel away money to protect them against the financial chaos.

The firm reported a 15 per cent rise in net cash generation to £631m 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.

The chief executive Tim Breedon said: "We are reaping the benefits of rising individual and corporate prudence in the UK as the move from indebtedness to saving continues."

L&G has been increasing its sales of savings and pension products. It attracted £25.1bn of gross new funds to its investment management business although the increase was 4 per cent down on last year's figure, reflecting tough market conditions.

Its savings business saw new business increase 14 per cent to £555m amid strong demand for unit trusts and ISAs, while new business at its housing and protection was up 5 per cent to £137m. Its annuities business suffered a decline in new business but its final quarter figure will be boosted by a recent £1.1bn deal.