22nd Feb 2007 09:10
Legal & General Group PLC22 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 Profitsfund 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 investmentreturn for the fourth year in succession demonstrates the benefits to ourcustomers of investing their money in a strong, well-managed and balanced WithProfits fund. With our ability to invest significantly in equities andcommercial property I believe it will prove to be one of the strongestperformances in the insurance sector. "During 2006 our customers will have seen strong growth in the value of theirinvestment 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 theyear. 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 wehave the flexibility as investment managers to take advantage of a wider rangeof opportunities. This flexibility has meant that over the last five years ourWith Profits fund has outperformed key indicators, such as the FTSE All-ShareIndex, while limiting the risk of exposure of our customers to pure equityinvestment. We therefore believe that With Profits remains an excellent longterm savings choice for our customers." Notes: 1 Return generated in 2006 on assets backing With Profits policies, statedpre-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 downloadedfrom: http://wpsgroup/MMWIP/1743763c41ea94d6/a6cdfbe2d93649d7.html Forward looking Statements: This document may contain certain forward-looking statements with respect tocertain of Legal & General Group Plc's plans and its current goals andexpectations relating to future financial condition, performance and results. Bytheir nature forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances which are beyond Legal & GeneralGroup Plc's control, including, among others, UK domestic and global economicand business conditions, market related risks such as fluctuations in interestrates and exchange rates, the policies and actions of governmental andregulatory authorities, the impact of competition, the timing impact and otheruncertainties of future mergers or combinations within relevant industries. As aresult, Legal & General Group Plc's actual future condition, performance andresults may differ materially from the plans, goals and expectations set out inLegal & General Group Plc's forward-looking statements. Legal & General GroupPlc does not undertake to update forward-looking statements contained in thisdocument 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 6298Nicola Marshall, Investor Relations Manager 020 7528 6263 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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