Stock Exchange Release
19 February 2009

 WITH PROFITS BONUS ANNOUNCEMENT

Legal & General today announces the regular and final bonus rates on its With Profits policies.

As a result of large falls in most major investment markets in 2008 and difficult conditions continuing into 2009, it has been necessary to reduce most bonus rates.  

Over the past five years, assets invested for investors in Legal & General's With Profits fund have returned 27% before tax, outperforming the average balanced managed fund return of 21%¹. This is despite recording a decrease of 18% before tax in 2008.

With Profits gives significant protection to investors in volatile market conditions through its smoothing of returns and investment in a wide range of asset types. Investors continue to benefit from smoothing and we have declared total bonuses of £689 million in 2008 (£665m in 2007).

Carl Dowthwaite, Finance Director of Legal & General's With Profits business said:

'With Profits continues to provide attractive long term returns and has given customers genuine protection from market volatility.

In current market conditions the core features of With Profits mean that it remains a good choice for investors. Our investment strategy puts us in a strong position to benefit from market recovery'

Investment values for policyholders

A 25 year, £50 a month mortgage endowment maturing on 1 March 2009 will have delivered an investment value £2,036 above the target amount of £34,378 at £36,414.

£200 a month invested in a pension over the past 20 years with a retirement date of 1 March 2009 will have delivered an investment value of £82,785 (versus premiums paid of £48,000).

For further examples of payouts please see full tabular data available at our Media Centre at:

http://www.legalandgeneralmediacentre.com/

Legal & General has approximately 750,000 With Profits policyholders and approximately 45,000 endowments matured in 2008.

Notes to Editors 

• The information contained in Legal & General's press release is intended solely for journalists and should not be used by consumers to make financial decisions.

• Legal & General Assurance Society Limited. 

Registered in England No 166055. Registered office: One Coleman Street, London EC2R 5AA.

1. Data Source: LIPPER (ABI Balanced Managed Pension Fund sector)