L&G's UK savings business witnessed sales increase 30% to £267 million against sales of £206 million in the first quarter of 2009. This boost in sales will be enjoyed by the insurers. In the first three months, worldwide sales at the insurer rose 2% to £388 million, which is up from £382 million a year ago.

Tim Breedon, L&G group Chief Executive said, "Our focus on generating cash, reducing costs, achieving higher returns on capital and modernising our product portfolio continues to deliver".

He added that the group generated £179 million of net cash in the quarter and 32% more than in the first quarter of last year. The company is on the track to deliver £600 million of cash in 2010.

In the first quarter of 2009, the share of L&G business sold by IFAs has fallen again to 65% from 71%. Sales from tied agents rose to 27% of L&G's new business from 19% in the same period of last year. L&G business sold direct to consumer has plunged to 8% from 10% last year.

About £10.8 billion of new funds were attracted by L&G Investment Management, which is up from £7.4 billion in 2009. But this time the result has exceeded the maximum analyst forecast of £10.2 billion of new funds.