Mild winter helps L&G turn loss into £42m profit

The mild winter helped Legal and General (L&G) turn an £8m operating loss last year into a £42m profit in its general insurance arm for 2011.

New premiums grew by 38% to £110m as the company extended its relationships with brokers and grew in the direct space.

“In general insurance, new business premium income grew by 38% to £110m (2010: £80m) as a
result of building our presence in the direct market and continuing to develop key broker relationships,” L&G said in a statement today.

“A combined operating ratio of 88% (2010: 106%) benefited from more benign weather conditions in the UK compared with
the two severe weather events experienced in 2010.”