L&G Q1 New Business Results

Legal & General Group PLC
26 April 2006


LEGAL & GENERAL GROUP PLC NEW BUSINESS RESULTS FOR THE 3 MONTHS TO 31 MARCH 2006


Stock Exchange Release
26 April 2006

Continued momentum - strong market environment



•    Strong UK market growth

•    Legal & General outperforms again

     o     UK new business up 28% to £363m APE

     o     Worldwide new business up 27% to £390m APE

•    £5.6bn new institutional funds under management





Group Chief Executive, Tim Breedon, said:



'Legal & General Group's first quarter 2006 new business results show continued
new business momentum, reflecting the strength of the protection, savings and
investment markets in the UK and of our position within them.

In particular, our partnership with Cofunds, the investment fund platform, and
our many long-standing Bank and Building Society relationships, are playing an
important role in driving our business forward.

UK new business was up 28% in the first quarter of this year.  We saw good
performance in retail protection sales as the housing market showed further
signs of recovery.  There was increased activity in the retail pensions market,
with customers and advisers preparing for changes in pensions legislation.  Our
investment bond business rose 39% with intermediaries taking advantage of the
opportunities available to them and to their customers through wrap platforms
and our newly launched multi-fund Portfolio Bond.  In retail investments, ISA
and unit trust sales saw impressive growth, as consumers drew confidence from
improved equity markets.

Legal & General Investment Management delivered £5.6bn of new funds under
management  - yet another quarter of outstanding performance.

This is a strong start to the year.  We remain confident in our ability to
continue delivering profitable growth.'



New business APE(1) (£m)                                       Q1 2006     Q1 2005     % change
_______________________________________________________________________________________________
UK life and pensions                                               239         208         15
International life and pensions                                     27          24         13
_______________________________________________________________________________________________
Total life and pensions                                            266         232         15
_______________________________________________________________________________________________
UK retail investments                                              124          75         65
_______________________________________________________________________________________________
Worldwide total                                                    390         307         27
_______________________________________________________________________________________________
Investment management                                           £5.6bn      £3.4bn         63
_______________________________________________________________________________________________
1. Annual Premium Equivalent (APE) = total new annual premiums plus 10% of
   single premiums, including ISAs and unit trusts



UK life and pensions - Q1 up 15% to £239m APE
New business APE (£m)                                         Q1 2006     Q1 2005     % change
_______________________________________________________________________________________________
Protection                                                         56          54           4
Annuities                                                          33          44         (25)
Savings:
- Unit linked bonds                                                61          44          39
- Pensions - Stakeholder and other non profit                      41          31          32
With-profits                                                       48          35          37
_______________________________________________________________________________________________
Total UK life and pensions                                        239         208          15
_______________________________________________________________________________________________


Protection - Q1 up 4% to £56m APE

The recovery in mortgage application volumes experienced towards the end of 2005
has fed through to improved protection sales in Q1 2006.  Sales of annual
premium mortgage related protection business increased by 30% to £26m (Q1 2005:
£20m).  Other retail protection business was broadly in line with the same
quarter last year at £13m (Q1 2005: £12m).

Group risk new annual premiums fell from £22m in Q1 2005 to £17m in Q1 2006.
2004 and 2005 volumes in this segment benefited from the withdrawal of a
competitor at the end of 2003.  In addition, market activity was lower in the
first quarter 2006 as intermediaries and their customers focused on preparations
for A-Day.  We believe this reduced volume of new business represents a more
sustainable level going forward, albeit double the average level of quarterly
sales in this segment achieved by Legal & General in 2003.

Annuities - Q1 down 25% to £33m APE

At £56m, single premium sales of non profit individual annuities were 68% lower
than Q1 2005 (£174m) and 23% below Q4 2005 (£73m).  Competitive pricing has been
a feature of this market over the last nine months.  We remain comfortable
seeing a lower market share whilst the available returns do not meet our profit
requirements.   Comparisons against performance in the first half of 2005 will,
therefore, remain challenging.

At £277m, sales of single premium bulk purchase annuities were 5% above Q1 2005
(£264m).  This included one medium-sized scheme of over £100m, with other new
business driven by smaller cases.  Quotation volumes remain strong.

Savings: Unit linked bonds - Q1 up 39% to £61m APE

Sales of single premium unit linked bonds rose by 39% to £605m (Q1 2005: £434m),
continuing the trend of strong growth seen throughout 2005.  In Q1 2006, we
benefited from the launch of our multi-fund bond to IFAs using the platform
developed with Cofunds and we anticipate this will provide increasing volumes of
new business going forward.




Savings: Pensions - Q1 up 32% to £41m APE

Pensions volumes grew by 32% over the quarter to £41m APE (Q1 2005: £31m APE),
due to good growth in employer related pensions business and increased levels of
transfer activity in the run-up to pensions A-Day on 6 April.  New annual
premium pensions business increased by 42% in Q1 to £27m (Q1 2005: £19m) and
single premium new business grew by 15% to £142m (Q1 2005: £124m).

With-profits - Q1 up 37% to £48m APE

New business from with-profits individual pensions increased by 52% to £41m APE
(Q1 2005: £27m APE), owing mainly to an increase in pensions transfer activity
ahead of pensions A-Day.  With-profits bond sales continued to decline to £21m
(Q1 2005: £57m).

International life and pensions - Q1 up 13% to £27m APE

In our US operations, new business of $19m APE was in line with Q1 2005 ($19m
APE).  Returns in sterling terms of £11m APE (Q1 2005: £10m APE) reflected a
strengthened dollar.

Our businesses in the Netherlands and France continued to show good growth.  New
business increased to €14m APE (Q1 2005: €12m APE) in the Netherlands and to
€10m APE (Q1 2005: €8m APE) in France, driven by strong single premium savings
business.

Overall, new business from our overseas operations in sterling terms increased
by 13% from £24m to £27m of APE.

Retail investments - Q1 up 65% to £124m APE

New retail investments business increased by 65% to £124m APE (Q1 2005: £75m
APE) as investor confidence in equity markets continued to improve.  Sales of
single payment ISAs were up 25% to £105m (Q1 2005: £84m) and single payment unit
trust new business grew 72% to £1,090m (Q1 2005: £634m).  Demand was strong from
both retail and institutional customers.

Investment management - Q1 up 63% to £5.6bn

Institutional new business volumes continue to grow strongly, increasing by
£2.2bn, or 63%, to £5.6bn in Q1 2006 (Q1 2005: £3.4bn).

We continued to attract an average of over £1bn per month of new business from
pension fund clients and we saw significant growth also from non-pension fund
institutions.

Outlook

We expect further market growth in the investment, savings and protection
markets throughout 2006 and believe  Legal & General is well placed to
capitalise on these opportunities.  Our relationship with Cofunds is already
bearing fruit and we expect that the advantages of this technology will become
increasingly valued by both customers and intermediaries. New products have been
launched, such as a Self Invested Personal Pension product on the Cofunds
platform and a pension term assurance product, and we expect further
developments later this year.  Mortgage transaction volumes are increasing and
associated protection sales are expected to continue to grow.

We are confident that, with our broad product range and distribution strength,
Legal & General will continue to deliver strong results throughout 2006.






Enquiries to:

Investors:

Peter Horsman, Head of Investor Relations                 020 7528 6362

Jonathan Maddock, Head of Investor Relations              020 7528 6298

Nicola Marshall, Investor Relations Manager               020 7528 6263
________________________________________________________________________________


Media:

John Morgan, Media Relations Director                     020 7528 6213

Anthony Carlisle, Citigate Dewe Rogerson                  07973 611888
________________________________________________________________________________


Notes:

•A copy of this announcement can be found in the News and Results section
 of our shareholder web site at http://investor.legalandgeneral.com/releases.cfm

•Issued share capital at 31 December 2005 was 6,507,421,932 shares of 2.5p each.




Financial Calendar 2006:

________________________________________________________________________________
Annual General Meeting                                           18 May
________________________________________________________________________________
Payment of 2005 final dividend                                   22 May
________________________________________________________________________________
Interim results and second quarter new business                  27 July
________________________________________________________________________________
Ex-dividend date for interim dividend                            6 September
________________________________________________________________________________
Record date for interim dividend                                 8 September
________________________________________________________________________________
Payment date for interim dividend                                2 October
________________________________________________________________________________
Third quarter new business results                               18 October
________________________________________________________________________________


Forward-looking statements:

This document may contain certain forward-looking statements with respect to
certain of Legal & General Group Plc's plans and its current goals and
expectations relating to future financial condition, performance and results.
By their nature forward-looking statements involve risk and uncertainty because
they relate to future events and circumstances which are beyond Legal & General
Group's control, including, among others, UK domestic and global economic and
business conditions, market related risks such as fluctuations in interest rates
and exchange rates, the policies and actions of regulatory authorities, the
impact of competition and the policies and actions of governmental and
regulatory authorities, the timing impact and other uncertainties of future
acquisition or combinations within relevant industries.  As a result, Legal &
General Group's actual future condition, performance and results may differ
materially from the plans, goals and expectations set out in Legal & General
Group's forward-looking statements.  Legal & General Group Plc does not
undertake to update forward-looking statements contained in this document or any
other forward-looking statement it may make.





Legal & General Group Plc
Unaudited New Business Premiums
Three months to 31 March 2006

WORLDWIDE NEW BUSINESS
                                       Three months to 31 March 2006      Three months to 31 March 2005
                                         Annual    Single       APE    Annual    Single       APE    Increase/
                                       premiums  premiums            premiums  premiums             (decrease)
                                             £m        £m        £m        £m        £m        £m            %
______________________________________________________________________________________________________________
UK life and pensions business
- Protection                                 56         -        56        54         -        54           4
- Annuities                                   -       333        33         -       438        44         (25)
- Savings
    - Unit linked bonds                       -       605        61         -       434        44          39
    - Pensions - Stakeholder and other       27       142        41        19       124        31          32
      non profit
- With-profits                               29       190        48        19       160        35          37
______________________________________________________________________________________________________________
Total UK life and pensions business         112     1,270       239        92     1,156       208          15

International life and pensions business
- USA                                        11         -        11        10         -        10          10
- Netherlands                                 3        59         9         4        46         8          13
- France                                      1        59         7         1        47         6          17
______________________________________________________________________________________________________________
Total international life and pensions        15       118        27        15        93        24          13
business

UK retail investment business                 4     1,195       124         3       718        75          65
France retail investment business             -         5         -         -         5         -         N/A
______________________________________________________________________________________________________________
Total retail investment business              4     1,200       124         3       723        75          65
______________________________________________________________________________________________________________
Worldwide new business                      131     2,588       390       110     1,972       307          27
______________________________________________________________________________________________________________






WORLDWIDE NEW BUSINESS QUARTERLY PROGRESSION
                                                           3 months  3 months  3 months  3 months     3 months 
                                                                 to        to        to        to           to
                                                           31.03.06  31.12.05  30.09.05  30.06.05     31.03.05
______________________________________________________________________________________________________________
UK life and pensions business
- Protection                                                     56        46        54        54          54
- Annuities                                                      33        40        35        35          44
- Savings
  - Unit linked bonds                                            61        60        54        50          44
  - Pensions - Stakeholder and other non profit                  41        39        40        42          31
- With-profits                                                   48        40        37        38          35
______________________________________________________________________________________________________________
Total UK life and pensions business                             239       225       220       219         208

International life and pensions business
- USA                                                            11        12        11         9          10
- Netherlands                                                     9         7         8         6           8
- France                                                          7         6         8        16           6
______________________________________________________________________________________________________________
Total international life and pensions business                   27        25        27        31          24

UK retail investment business                                   124        67        79        94          75
France retail investment business                                 -         -         1         1           -
______________________________________________________________________________________________________________
Total retail investment business                                124        67        80        95          75
______________________________________________________________________________________________________________
Worldwide new business APE                                      390       317       327       345         307
______________________________________________________________________________________________________________





Legal & General Group Plc
Unaudited New Business Premiums
Three months to 31 March 2006

UK LIFE AND PENSIONS NEW BUSINESS
                                     Three months to 31 March 2006          Three months to 31 March 2005
                                         Annual    Single       APE    Annual    Single       APE    Increase/
                                       premiums  premiums            premiums  premiums             (decrease)
                                             £m        £m        £m        £m        £m        £m            %
______________________________________________________________________________________________________________
Protection
- Mortgage related                           26         -        26        20         -        20          30
- Other                                      13         -        13        12         -        12           8
- Group risk                                 17         -        17        22         -        22         (23)
______________________________________________________________________________________________________________
Annuities
- Individual                                  -        56         5         -       174        17         (71)
- Bulk purchase                               -       277        28         -       264        27           4
______________________________________________________________________________________________________________
Savings
- Unit linked bonds                           -       605        61         -       434        44          39
- Individual pensions                        27       142        41        19       124        31          32
______________________________________________________________________________________________________________
With-profits
- Annuities                                   -        20         2         -         9         1         100
- Individual pensions                        28       131        41        18        88        27          52
- DWP rebates                                 -        17         2         -         5         -         N/A
- Group pensions                              1         1         1         1         1         1           -
- Bonds                                       -        21         2         -        57         6         (67)
______________________________________________________________________________________________________________
Total UK life and pensions business         112     1,270       239        92     1,156       208          15
______________________________________________________________________________________________________________




INVESTMENT MANAGEMENT
                                                                                Three months to 31   Increase/
                                                                                       March
                                                                                   2006      2005   (decrease)
                                                                                     £m        £m            %
UK Managed Funds
- Pooled funds                                                                    3,763     3,314          14
- Segregated funds                                                                   61        42          45
______________________________________________________________________________________________________________
                                                                                  3,824     3,356          14

UK Other                                                                          1,739        57       2,951
______________________________________________________________________________________________________________
Total new funds                                                                   5,563     3,413          63
______________________________________________________________________________________________________________





Legal & General Group Plc
Unaudited New Business Premiums
Three months to 31 March 2006

INTERNATIONAL OPERATIONS IN LOCAL CURRENCY

                                      Three months to 31 March 2006   Three months to 31 March 2005  Increase/
                                         Annual    Single       APE    Annual    Single       APE   (decrease)
                                       premiums  premiums            premiums  premiums                      %
______________________________________________________________________________________________________________
USA ($m):                                    19         -        19        19         -        19           -

Netherlands (€m):                             5        86        14         5        66        12          17

France (€m):
   - Life and pensions                        1        86        10         1        68         8          25
   - Unit trusts                              -         7         -         -         6         -         N/A
______________________________________________________________________________________________________________




UK RETAIL BUSINESS APE BY CHANNEL
                                                                    Three months to 31 March 2006
                                                                       Annual    Single Total APE         % of
                                                                           £m        £m        £m        total
______________________________________________________________________________________________________________
Independent financial advisers                                             65       157       222          70
Tied                                                                       29        56        85          27
Direct                                                                      4         6        10           3
______________________________________________________________________________________________________________
Total                                                                      98       219       317         100
______________________________________________________________________________________________________________

                                                                    Three months to 31 March 2005
                                                                       Annual    Single Total APE         % of
                                                                           £m        £m        £m        total
______________________________________________________________________________________________________________
Independent financial advisers                                             48        89       137          59
Tied                                                                       21        66        87          37
Direct                                                                      3         6         9           4
______________________________________________________________________________________________________________
Total                                                                      72       161       233         100
______________________________________________________________________________________________________________



Legal & General Group Plc
Unaudited New Business Premiums
Three months to 31 March 2006

UK NEW BUSINESS
                                                                              Three months to 31     Increase/
                                                                                     March
                                                                                   2006      2005   (decrease)
                                                                                     £m        £m            %
______________________________________________________________________________________________________________
UK INDIVIDUAL LIFE AND PENSIONS BUSINESS

New annual premiums
Life:
- Mortgage related                                                                   26        20          30
- Protection                                                                         13        12           8
Pensions:
- Individual pensions - non profit                                                   27        19          42
- Individual pensions - with-profits                                                 28        18          56
______________________________________________________________________________________________________________
Total new annual premiums                                                            94        69          36

Single premiums
Life:
- With-profits                                                                       21        57         (63)
- Unit-linked                                                                       605       434          39
Pensions:
- Individual pensions - non profit                                                  142       124          15
- Individual pensions - with-profits                                                131        88          49
- Individual annuities - non profit                                                  56       174         (68)
- Individual annuities - with-profits                                                20         9         122
- DWP rebates                                                                        17         5         240
______________________________________________________________________________________________________________
Total single premiums                                                               992       891          11
______________________________________________________________________________________________________________
Individual life and pensions total APE                                              193       158          22
______________________________________________________________________________________________________________

UK RETAIL INVESTMENTS

New annual premiums
- ISAs/PEPs                                                                           3         3           -
- Unit trusts                                                                         1         -         N/A
______________________________________________________________________________________________________________
Total new annual premiums                                                             4         3          33

Single premiums
- ISAs/PEPs                                                                         105        84          25
- Unit trusts                                                                     1,090       634          72
______________________________________________________________________________________________________________
Total single premiums                                                             1,195       718          66
______________________________________________________________________________________________________________
UK retail investments total APE                                                     124        75          65
______________________________________________________________________________________________________________
UK retail business total APE                                                        317       233          36
______________________________________________________________________________________________________________

UK CORPORATE LIFE AND PENSIONS BUSINESS

New annual premiums
- Group risk                                                                         17        22         (23)
- Group pensions                                                                      1         1           -
______________________________________________________________________________________________________________
Total new annual premiums                                                            18        23         (22)

Single premiums
- Bulk purchase annuities                                                           277       264           5
- Other group business                                                                1         1           -
______________________________________________________________________________________________________________
Total single premiums                                                               278       265           5
______________________________________________________________________________________________________________
UK corporate life and pensions APE                                                   46        50          (8)
______________________________________________________________________________________________________________
UK business total APE                                                               363       283          28
______________________________________________________________________________________________________________




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