Capital /New Business

Legal & General Group PLC
10 January 2008

RIS

New Capital Structure

Record Year for UK Life and Pensions Business and Fund Management

Legal & General will today brief analysts and investors on the completion of the
major structural components of its Capital Review, as set out on 31 December
2007 and will take the opportunity to update the market on headline new business
figures for 2007.

The broad ranging capital review has resulted in a modern, flexible capital
structure, in support of long-term profitable growth. Detailed new business
figures for 2007 will be released as previously scheduled on the 24 January
2008.

New business highlights for 2007 are:

UK Life and Pensions up 8% to £1,160m APE
Risk Business - Protection and Annuities up 4% to a record £423m APE
UK L&P Non- Profit Savings up 7% to £504m APE
Legal & General Investment Management new business up 155% to an exceptional
£52.6bn

Tim Breedon, Group Chief Executive said:

'Legal & General delivered a record year for new business in UK Life and
Pensions in 2007 and despite tougher market conditions, the fourth quarter
proved to be our strongest of the year for both UK and worldwide new business
APE.

'Legal & General Investment Management's new business performance was
outstanding in 2007. LGIM won over £52 billion in new mandates, reinforcing its
position as the UK's leading institutional investor.

'The UK marketplace is likely to prove just as challenging in 2008 as it was in
the second half of 2007, with the economy forecast to soften as it digests the
credit crunch. However, great opportunities exist for us to further strengthen
our outstanding new business franchise, and the changes introduced from the
capital review will provide excellent support to deliver further profitable
growth.'

Risk Business

Annuities - APE £200m (2006: APE £174m) up 15% on previous record year

Bulk purchase annuities (BPA) had a record Q4 and a record year. £62m APE of new
business was won in Q4, resulting in £1.12bn (£0.6bn Q4) single premium during
2007. There is evidence that the 'step-change' in demand from 'open' schemes
that we have been anticipating for some time is now taking place.

Individual annuities also had a record year with sales 24% higher than 2006. Our
postcode pricing pilot was successful and is being rolled out more widely. It
will further enhance Legal & General's position at the forefront of pricing
technology.

Protection - APE £223m (2006: APE £231m) down 3% on previous record year

Group protection had a good final Q4. Full year sales for Group protection of
£63m APE are broadly in line with 2006, which was itself a strong year. We aim
to invest further in product, infrastructure and service to continue growing our
position in this attractive market.

Individual Protection sales held up well in Q4. 2007 finished close to the
previous year at £160m APE. The softening housing market and credit crunch made
trading conditions in the second half of the year more challenging. Legal &
General continues to expand distribution and diversify its product range away
from housing related sales. In February we will be launching our partnership
with Nationwide Building Society, which has the potential to be one of our
largest distribution partnerships. We expect to have maintained market share in
2007 and to outperform the market in 2008.

Savings Business

Savings - APE £504m (2006: APE £469m) up 7%
With-profits - APE £228m (2006: APE £191m) up 19%

Pensions sales were strong in 2007 as our SIPP launches continued to gain
traction in the market and the A-day benefit effect continued, although now at a
slower pace (Non profit pensions APE £253m in 2007 vs APE £207m in 2006).
Investment bonds sales slowed in Q4 in volatile investment markets and as the
uncertainty around potential tax changes impacted the market. Total new business
sales for investment bonds ended just down on last year (Non profit bond APE
£251m in 2007 vs APE £261m in 2006). We are pleased that our successful
partnership with the market-leading Cofunds fund platform has been broadened and
extended.

UK Retail Investments - APE £344m (2006: APE £664m), core retail down 1%,
wholesale/institutional down 71%

Full year sales were down but stronger in Q4. Once again these included some of
the large transfers of bundled unit trusts from financial institutions which
were a feature of 2006, but were not repeated to the same extent in 2007.
Underlying retail demand was a little weaker in Q4 in line with industry trends.

International

International - APE £114m (2006: APE £103m) up 11%

The USA and France drove business sales growth. In the USA we strengthened our
position in the high net worth term market, and in France regulatory changes
have stimulated the savings market. Conditions in the Netherlands remained
challenging.

Investment Management

Legal & General Investment Management (LGIM) - new business £52.6bn (2006:
£20.7bn) up 155%

LGIM had another record quarter and another record year, recording gross new
business of £20.2bn and £52.6bn respectively. Our core product offering and
strong client service continues to resonate with the investment marketplace. UK
corporate and local authority pension funds continued to invest in LGIM's index
funds and structured solutions. Although the business is showing good momentum
and we are confident of further progress in 2008, it is unlikely that this
exceptional level of inflows will be repeated.




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