U. K. insurer Legal & General Group PLC reported a decline of 5.4% in fourth-quarter new business sales, majorly hit by continuously weak consumer spending but company has reported strong cash surplus during the quarter.

Company reported a decline in sale from £ 1.48 billion to £1.39 billion for the same quarter of previous financial year on the worldwide basis. On the Individual basis sale of annuity grew 13% to £ 1.48 million. Company's saving business reported a strong sale of £375 million an increase of 64% from the previous year.

According to Tim Breedon, Chief Executive of L&G "Ongoing changes to product mix and design, cost reductions, favorable pricing conditions in the annuity market and substantial growth in assets under management have delivered results well ahead of expectations, with in excess of £650 million of net cash generated in 2009".

He also added that for the coming 12 months UK market is expected to show the modest growth and Risk and saving market which were depressed in 2009 also expected to rebound.