Announcing its results for 2007 pensions and insurance provider Legal & General said the internet will play an important part in its plans for expansion and customer relationships in 2008.
Profits at Legal & General were down on 2006; its European Embedded Value (EEV) operating profit for 2007 was £912 million, compared to £1,233 million the previous year. International Financial Reporting Standard (IFRS) profit after tax was also down, at £718 million, compared to £1,631 million in 2006. But pension sales were up by 20 percent.
“Legal & General has delivered a robust set of financial results,” said Tim Breedon group chief executive in a statement that tried to stay positive.
Breedon told shareholders that the internet would become a core trading focus for the company in 2008. “We need to build in flexibility to adapt to future changes, for example to regulation or the way customers interact with us via new technology.” He added, “We have scale, breadth and distribution capability on which we intend to built in 2008. In its annual report Legal & General reiterated Breedon’s ambitions, “We plant to invest in an improved IT platform in 2008 to reinforce our administrative capacity further.”
In 2007, Legal & General continued its relationship with Cofunds, an independent investment platform. Cofunds is the UK’s largest independent investment platform and as of 29 February, 2008, Legal & General had 314 billion of investments under its administration as part of this relationship.
As the financial sector faced a difficult day on the international stock markets, Legal & General stated in its results that: “We expect 2008 will be a challenging year for the economy and for the industry”.