The company, which cited the strong growth in stock of assets and premiums for the cash results, also said it aims to make savings of £80m in 2015.

Total net inflows were £2.6bn – a fall from £9.0bn the previous year but total assets increased 17% to £736.8bn, a rise from £630.9bn.

Bulk annuity sales were down to £655m from £3,045bn in the same period last year while individual annuity sales were £99m, a drop from £244m reported last year, following the 2014 Budget reforms.

Despite this, the company said: "We remain focused on achieving our target return on economic capital across all of our annuity products."

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Total annuity assets increased by 19% to £45.6bn – compared to £38.3bn in 2014.

Net flows were £0.2bn down from £2.8bn last year.

Legal & General stated its belief that increasing numbers of customers will seek to supplement their retirement income by releasing some of the equity in their homes.

The company said it expected to write over £100m of lifetime mortgages this year and even more thereafter.

In March it acquired Newlife Home Finance, a provider of lifetime mortgages.

Nigel Wilson, group chief executive, said: "Legal & General's cash generation in Q1 of 2015 was a record. We have set a high bar for management actions and performance including our cost reduction target of £80m this year."

He said: "Our business is aligned to long term macro growth trends. We are adapting well to regulatory and political challenges, for example, managing the switch to 'pension freedom' with a new range of cash and retirement products, which now includes lifetime mortgages.

"The group is benefiting as we leverage our leading position in pension de-risking, selectively expand our international footprint in the US and Asia, and invest in the future success of the UK through our partnership in Media City in Salford and entry into the private rental sector in 2015."