Legal & General’s low cost workplace savings operation lost £15m last year, though losses were half the £29m lost in 2013, according to an analyst’s briefing note seen by Corporate Adviser.
The provider, which has been vocal in calling on the government to lower the auto-enrolment pension charge cap to 0.5 per cent, says it does not expect to break even on its workplace savings proposition until the end of 2015.
By the end of 2014 it had 1.2m members, up from 903,000 at the end of 2013. Workplace assets have grown from £3.8bn in 2011 to £11.1bn in 2014, a compound annual growth rate of 43 per cent.
A spokesman for L&G says: “In 2014 we halved the losses of £29m made in 2013 and the target is for our workplace business to break-even by the end of 2015.”
LCP partner Andy Cheseldine says: “If the losses were increasing then I would be worrying, but the numbers look to be going in the right direction. They are achieving scale and scale is a good thing.”