2006 Bonus Announcement
Legal & General Group PLC
22 February 2007
22 February 2007
LEGAL & GENERAL 2006 BONUS ANNOUNCEMENT
• With Profits fund generates 11.2%1 return for customers
• 5 year return of 55% has exceeded FTSE All-Share and FTSE 100 indices2
• Total bonus declared of £596m - up 43% on 2005
• Equity/property backing for With Profits customers 71% (2005 68%)3
Legal & General has generated an 11.2% return for customers on its With Profits
fund and is announcing £596m in With Profits bonuses for 2006.
Legal & General With Profits Managing Director Mark Gregory said:
'Achieving an investment return of 11.2% in 2006 and a double digit investment
return for the fourth year in succession demonstrates the benefits to our
customers of investing their money in a strong, well-managed and balanced With
Profits fund. With our ability to invest significantly in equities and
commercial property I believe it will prove to be one of the strongest
performances in the insurance sector.
'During 2006 our customers will have seen strong growth in the value of their
investment with most customers enjoying high single digit returns - for example,
a single premium bond held for ten years shows a 9% increase in value over the
year. This return also means that the benchmark 25 year low cost endowment of
£50 per month taken out in March 1982 by a 29 year old male will be worth
£44,602 against a target amount of £27,656 leading to a surplus of £16,946.
'The financial strength of Legal & General's With Profits fund means that we
have the flexibility as investment managers to take advantage of a wider range
of opportunities. This flexibility has meant that over the last five years our
With Profits fund has outperformed key indicators, such as the FTSE All-Share
Index, while limiting the risk of exposure of our customers to pure equity
investment. We therefore believe that With Profits remains an excellent long
term savings choice for our customers.'
Notes:
1 Return generated in 2006 on assets backing With Profits policies, stated
pre-tax and charges.
2 Total return over 5 years: FTSE All-Share 50.2%; FTSE100 41.1%
3 As at 31 December
Further details of Legal & General's 2006 Bonus Declaration can be downloaded
from:
http://wpsgroup/MMWIP/1743763c41ea94d6/a6cdfbe2d93649d7.html
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 Plc'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 governmental and
regulatory authorities, the impact of competition, the timing impact and other
uncertainties of future mergers or combinations within relevant industries. As a
result, Legal & General Group Plc's actual future condition, performance and
results may differ materially from the plans, goals and expectations set out in
Legal & General Group Plc'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.
Issued By :
Media:
John Morgan, Media Relations Director 020 7528 6213
07798 604951
Investors:
Jonathan Maddock, Head of Investor Relations 020 7528 6298
Nicola Marshall, Investor Relations Manager 020 7528 6263
This information is provided by RNS
The company news service from the London Stock Exchange
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