Legal & General insurance sales break £1bn

Sales at UK insurance giant Legal & General breached the £1 billion mark for the first time in 2004.

Results released by the firm, which this week won an appeal against a regulatory fine, also highlight a 22 per cent rise in new UK business during the last quarter of 2004.

Overall annual growth exceeded 14 per cent, driven by a 29 per cent rise in life and pensions sales, as business levels soared past £1 billion.

Chief executive David Prosser believes that rising consumer confidence in savings products would ensure the company maintains its momentum over the coming year.

He also expressed his hope that regulation in the City will be improved following the insurers' successful appeal against a Financial Services Authority (FSA) fine.

L&G had been fined £1.1 million by the FSA for endowment mis-selling but a tribunal this week ruled the fine was excessive and should be reduced.

The FSA's regulatory decisions committee (RDC), which rules on enforcement penalties, was criticised by the tribunal.

"We like to feel that the end result of having gone through this process is that we do have an RDC that is fairer and more even-handed," Mr Prosser was quoted by the Guardian as saying.