1st Quarter Results to 31 March 2000

Legal & General Group PLC 12 April 2000 Legal & General Group Plc New Business Results - First Quarter UK individual life and pensions - up 22% International - up 30% Funds under management - up 22% First quarter First quarter 2000 1999 UK individual life and £84m £69m pensions* UK corporate life and £17m £27m pensions* UK unit trusts and ISAs* £29m £31m International business* £26m £20m Worldwide* £156m £147m New fund management £2.3bn £2.9bn business Funds under management £107bn £88bn * Equivalent Premium Income (EPI) - i.e. total new annual premiums + 10% of single premiums. Group Chief Executive, David Prosser, said: 'We have had a good start to the year. As we move towards next year's introduction of Stakeholder pensions, we are particularly encouraged by the 39% growth in group personal pension business. 'Our investment management business goes from strength to strength - adding £2.3bn of funds in the first quarter, after the exceptional new business result in 1999. With £107bn under management we are one of the UK's leading fund management houses. 'Internationally, I am also pleased with the continued strong growth produced by our business in the USA. 'In summary, our strategy of good value products provided through multi-channel distribution has continued to build market share. The skills and strengths of our investment management business are a key differentiator for Legal & General. We are very well positioned for continuing growth.' UK business =========== Investment management --------------------- Our investment management business provides asset management expertise to Legal & General's retail and corporate businesses, as well as to the trustees of pension schemes and other institutional clients. After an exceptional year in 1999, our investment business attracted a further £2.3bn in new funds under management (1999: £2.9bn). Total funds under management exceeded £107bn at the end of the quarter - an increase of 22% over the past twelve months. This underlines Legal & General's position as a major UK investment house and a leading provider of index tracking funds. Pensions -------- Growth in group personal pensions business has more than offset the decline in sales in the individual personal pensions market ahead of the launch of Stakeholder pensions. New individual pension and annuity business, including group personal pensions, increased 21% to £40m EPI (1999: £33m). We are continuing to develop relationships with employers, trade unions and other affinity groups to ensure that we are well positioned for the introduction of Stakeholder pensions in April 2001. Year on year comparison for the bulk purchase annuity business is distorted by the inclusion of £130m of business for a single client in the first quarter of 1999. Excluding this, new corporate business was £10m EPI - an 11% increase. Life ---- New retail annual premium business over the quarter grew by 43% to £30m (1999: £21m) building on the strong growth achieved in 1999. Single premium bond sales were £140m, close to the level of £144m achieved in the first quarter of 1999. Our group risk business continued to make good progress with new annual premiums increasing by 40% to £7m (1999: £5m). Unit trusts and ISAs -------------------- Single payment unit trust sales more than doubled to £78m (1999: £35m). Single payment ISA sales were £183m in the first quarter (1999: £272m) reflecting our decision not to promote specialist high technology funds. Our recently launched internet ISA offering, generated single payments of over £20m by 5 April - another positive demonstration of the potential for e-commerce in our business. International business ====================== The Group's international operations continued to grow rapidly, producing £26m EPI, an increase of 30%. Our business in the USA continued to produce very strong results, further reinforcing its position as one of the major specialist writers of term assurance. New annual premiums increased by 33% to $32m (1999: $24m). Sales in the Netherlands grew by 33% to Dfl 8m EPI (1999: Dfl 6m) reflecting the positive customer response to our new universal life product launched last year. In France, new business increased by 32% to Ffr 41m EPI (1999: Ffr 31m) with single premium business benefiting particularly from the launch of a new unit linked fund. For further information contact: Investors: Peter Horsman Media: John Morgan Investor Relations Manager Head of Public Relations 020 7528 6362 01737 375353 Anthony Carlisle Citigate Dewe Rogerson 020 7638 9571 LEGAL & GENERAL GROUP PLC UNAUDITED NEW BUSINESS PREMIUMS THREE MONTHS TO 31 MARCH 2000 NEW UK BUSINESS =============== Three months to 31 March increase/ 2000 1999 (decrease) £m £m % RETAIL LIFE AND PENSIONS BUSINESS New annual premiums Life: - Mortgage related 27 17 - Savings & Protection 3 4 Pensions: - Individual pensions 20 19 --- --- --- Total new annual premiums 50 40 25 Single premiums Life: - With profits 108 102 - Other 32 42 Pensions: - Individual pensions 81 66 - Annuities - individual 99 44 - DSS rebates 21 33 --- --- --- Total single premiums 341 287 19 Retail life --- --- --- and pensions EPI 84 69 22 CORPORATE LIFE AND PENSIONS BUSINESS New annual premiums - Group risk 7 5 - Group pensions 2 2 --- --- --- Total new annual premiums 9 7 29 Single premiums - Annuities - bulk purchase 57 185 - Other group business 19 14 --- --- --- Total single premiums 76 199 (62) Corporate life --- --- --- and pensions EPI 17 27 (37) ISAS, PEPS AND UNIT TRUSTS New annual premiums - ISAs/PEPs (excluding cash ISAs) 3 1 200 Single premiums - ISAs/PEPs (excluding cash ISAs) 183 272 - Unit trusts 78 35 --- --- --- Total single premiums 261 307 (15) ISAs, PEPs and --- --- --- and unit trusts EPI 29 31 (6) --- --- --- Total UK EPI 130 127 2 === === === ---- ---- ---- PENSION FUND MANAGEMENT 2328 2913 (20) ==== ==== ==== WORLDWIDE NEW BUSINESS ====================== Three months to Three months to 31 March 2000 31 March 1999 Annual Single Annual Single £m £m £m £m LIFE AND PENSIONS Life 37 140 26 144 Pensions 22 277 21 342 --- --- --- --- UK 59 417 47 486 USA 20 0 15 0 Netherlands 1 11 1 10 France 1 21 1 15 --- --- --- --- INSURANCE TOTAL 81 449 64 511 RETAIL INVESTMENT BUSINESS UK 3 261 1 307 France 9 9 --- --- --- --- TOTAL NEW BUSINESS 84 719 65 827 === === === === OVERSEAS OPERATIONS IN LOCAL CURRENCY Three months to increase/ 31 March (decrease) 2000 1999 % USA ($m): New annual premiums 32 24 Single premiums 0 1 EPI 32 24 33 Netherlands (D.Fl.m): New annual premiums 4 3 Single premiums 40 32 EPI 8 6 33 France (F.Fr.m): New annual premiums 8 8 Single premiums 229 149 Unit trusts 102 84 EPI 41 31 32 UK INDIVIDUAL EPI BY CHANNEL ============================ Three months to 31 March 2000 Annual Single Total EPI £m £m £m % Independent financial advisers 28 38 66 58 Business partnerships 20 7 27 24 Direct 5 15 20 18 --- --- --- --- 53 60 113 100 === === === === Three months to 31 March 1999 Annual Single Total EPI £m £m £m % Independent financial advisers 21 33 54 54 Business partnerships 17 7 24 24 Direct 3 19 22 22 --- --- --- --- 41 59 100 100 === === === ===

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