Profits at L&G's asset management arm drop 27% as external outflows mount

Wholesale AUM grows

Profits at Legal & General’s asset management division have plummeted by nearly a third, accompanied by a drop in assets under management on the back of heavy external outflows.

In its half-year results published today (7 August), the British insurer's asset management arm recorded a 27.2% fall in pre-tax profits to £159m, down from £209m last year.  The FTSE 100 firm said the drop was primarily driven by lower valuation uplifts for the investments on its balance sheet, including its stake in the European private debt manager Pemberton.  Additionally, the drop reflected higher investments of £55m to scale and modernise the division, which was formed in the firm's capital markets event in June from the combination of Legal & General Investment Management and L...