L&G upbeat on economy as it reports 7% dip in sales

CONFIDENCE is returning to the economy, according to life insurance firm Legal & General, which yesterday reported a slide in sales that was in line with market expectations.

Chief executive Tim Breedon said: "We see modest recovery in the UK going forward."

However, he added that he was sceptical about the benefits of consolidation within the insurance sector.

L&G reported a 7 per cent drop in sales in the nine months to 30 September, meeting City forecasts.

Sales stood at £1.06 billion, down from £1.14bn in the same period last year.

The firm said it had generated £450 million of net cash in the first nine months of the year, achieving its full-year target three months ahead of schedule. L&G had a capital surplus of £2.5bn at 30 September, up from £1.9bn in June.

ING analyst Kevin Ryan said: "I don't think the market will be too disappointed with the numbers."