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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