L&G 3rd Quarter New Business

Legal & General Group PLC
20 October 2003


20 October 2003

                           Legal & General Group Plc
                           =========================

                   New business results to 30 September 2003
                   =========================================

                                      Three months     Three months      Change
                                        to 30/9/03       to 30/9/02
New business APE (Note(1))
- UK individual business                     £177m            £170m         +4%
- UK group business                           £26m             £16m        +63%
UK total                                     £203m            £186m         +9%
International                                 £23m             £23m         nil
Total                                        £226m            £209m         +8%
                                                                     
Institutional fund management               £4.1bn           £3.0bn        +36%


Note (1) Annual Premium Equivalent (APE) is total new annual premiums + 10% of
         single premiums including ISAs and unit trusts.


David Prosser, Group Chief Executive, said: 'Legal & General continues to make
good progress in steadily improving market conditions with out-performance
against the corresponding quarter last year and, we believe, further market
share growth.

Success in distribution remains key for Legal & General. We are continuing both
to build our IFA strengths and to secure important new distribution agreements.

Legal & General Investment Management continues its remarkable record. Already
the largest manager of UK pension funds, it is deepening customer relationships
and extending its product range to become an increasingly strong business.'

UK new business
===============

In the third quarter, individual new business volumes (including ISAs and unit
trusts) grew 4% on the corresponding quarter last year to reach £177m APE (2002:
£170m). Individual life and pensions sales at £131m were 13% ahead of second
quarter sales. Group business at £26m APE in the third quarter (2002: £16m)
continued to reflect increased levels of bulk purchase annuity business. In
total, new business for the first nine months of the year was £608m APE (2002:
£635m), a decline of 4%.

Individual life
---------------

In the third quarter, annual premium sales increased from £36m in 2002 to £43m,
which also represented a 10% increase on the second quarter of 2003. New annual
premiums for the first nine months increased 7% to £114m (2002: £107m) as a
result of the strong position we have built in the life protection market,
particularly in mortgage related sales.

Demand for single premium bonds continued to reflect subdued investor sentiment
towards with-profit bonds. Although third quarter sales were lower than the
corresponding period last year at £275m (2002: £293m) they exceeded the second
quarter by 14% as a consequence of stronger sales of unit linked products. Over
the first nine months sales were 26% lower at £789m (2002: £1,069m).

Individual pensions
-------------------

Third quarter new annual premium business at £24m (2002: £39m) continued the
weaker trend seen in the first half of the year following the initial take up of
stakeholder schemes in 2002. We continue to focus on acquiring employer-related
schemes where there is a matching contribution from the employer. New annual
premium business over the first nine months amounted to £81m (2002: £132m).

In contrast single premium business was stronger, growing by 47% in the third
quarter to £360m (2002: £245m) as a consequence of increased individual annuity
sales and a higher level of DSS rebates. Over the first nine months of the year,
single premium business grew 41% to £876m (2002: £623m).

ISAs and unit trusts
--------------------

We have grown new business in the third quarter against the corresponding period
last year, benefiting from the support of our strategic partners and more stable
market conditions.

Regular payment business was lower in the third quarter bringing sales for the
first nine months to £27m (2002: £42m). Single payment sales in the third
quarter increased by 31% from £294m in 2002 to £386m reflecting improved market
conditions. For the nine-month period single payment sales increased by 9% to
£1,410m (2002: £1,299m).

Group business
--------------

In the third quarter, bulk purchase annuity single premiums at £149m exceeded
both the second quarter of 2003 (£119m) and the corresponding quarter last year
(£35m) as we continued to win encouraging volumes in the small and mid-sized
segment. This growth was the main driver of group new business, which increased
by 42% to £78m APE in the first nine months (2002: £55m).

Institutional fund management
=============================

Our institutional fund management subsidiary maintained its highly successful
track record with third quarter new business increasing by 36% to £4.1bn (2002:
£3.0bn). With new business of £10.1bn in the first nine months of the year
(2002: £10.2bn), we have maintained our record of averaging over £1bn of new UK
pension fund investment business per month since January 1998.

In a recent presentation to analysts and fund managers Tim Breedon, Group
Director (Investments), outlined the continuing growth of our index fund
business (including expansion beyond our existing UK customer base) and the
successful development of our active bonds business. This presentation can be
found at http://investor.legalandgeneral.com/presentations.cfm .

International business
======================

In the USA annual premium business slowed in the third quarter reflecting the
competitive environment. New business in the first nine months was $66m APE
(2002: $68m).

Our European businesses produced Eur. 45m APE in the first nine months (2002:
Eur. 47m). In the Netherlands, despite growth in single premiums in the third
quarter, volumes for the first nine months were lower at Eur. 21m (2002: Eur.
23m). In France, third quarter volumes grew from Eur. 8m to Eur. 9m APE, leaving
sales unchanged in the first nine months at Eur. 24m APE.


For further information contact:
Investors: Peter Horsman                               Media: John Morgan
Head of Investor Relations                             Head of Public Relations
020 7528 6362                                          020 7528 6213

                                                       Anthony Carlisle
                                                       Citigate Dewe Rogerson
                                                       020 7638 9571
                                                       07973 611888

Notes:
======

1. A copy of this announcement can be found in the shareholder section of our
   website at http://investor.legalandgeneral.com/releases.cfm

2. Financial Calendar:
   2003 full year new business results                          27 January 2004
   2003 preliminary results                                     26 February 2004
   2004 first quarter new business results and AGM              28 April 2004
   2004 interim results and second quarter new business         29 July 2004
   2004 third quarter new business results                      20 October 2004


LEGAL & GENERAL GROUP PLC
UNAUDITED NEW BUSINESS PREMIUMS
NINE MONTHS TO 30 SEPTEMBER 2003
NEW UK BUSINESS                                   Nine months to                        Three months to
                                                   30 September          increase/       30 September          increase/
                                                 2003       2002        (decrease)     2003         2002      (decrease)
                                                   £m         £m            %            £m           £m           %
INDIVIDUAL LIFE AND PENSIONS BUSINESS
New annual premiums
Life:
- Mortgage related                                 78         73                         30           24
- Protection                                       36         34                         13           12
Pensions:
- Individual pensions                              81        132                         24           39
                                               ------     ------          ------     ------       ------          ------
Total new annual premiums                         195        239            (18)         67           75            (11)
Single premiums
Life:
- With-profits                                    450        886                        122          221
- Other                                           339        183                        153           72
Pensions:
- Individual pensions                             217        214                         52           64
- Annuities - individual                          525        300                        211          115
- DSS rebates                                     134        109                         97           66
                                               ------     ------          ------     ------       ------          ------
Total single premiums                           1,665      1,692             (2)        635          538              18
Individual life                                ------     ------          ------     ------       ------          ------
and pensions APE                                  362        408            (11)        131          129               2
                                               ======     ======          ======     ======       ======          ======


                                                 Nine months to                         Three months to
                                                  30 September          increase/        30 September          increase/
                                                2003       2002        (decrease)      2003         2002      (decrease)
                                                  £m         £m            %             £m           £m           %
ISAS, PEPS AND UNIT TRUSTS
New annual premiums
- ISAs/PEPs
(excluding cash ISAs)                              22         37            (41)          7           11            (35)
- Unit trusts                                       5          5                          1            0
                                               ------     ------                     ------       ------
Total new annual premiums                          27         42            (36)          8           11            (27)
Single premiums
- ISAs/PEPs
(excluding cash ISAs)                             496        646                        104          110
- Unit trusts                                     914        653                        282          184
                                               ------     ------          ------     ------       ------          ------
Total single premiums                           1,410      1,299               9        386          294              31
ISAs, PEPs and                                 ------     ------          ------     ------       ------          ------
unit trusts APE                                   168        172             (2)         46           41              12
                                               ======     ======          ======     ======       ======          ======
                                               ------     ------          ------     ------       ------          ------
Total individual business APE                     530        580             (9)        177          170               4
                                               ======     ======          ======     ======       ======          ======


                                                  Nine months to                        Three months to
                                                   30 September          increase/       30 September          increase/
                                                 2003       2002        (decrease)     2003         2002      (decrease)
                                                   £m         £m            %            £m           £m          %
GROUP LIFE AND PENSIONS BUSINESS
New annual premiums
- Group risk                                       24         24                         11           10
- Group pensions                                    2          5                          0            1
                                               ------     ------          ------     ------       ------          ------
Total new annual premiums                          26         29            (10)         11           11               2
Single premiums
- Annuities - bulk purchase                       515        210                        149           35
- Other group business                              9         52                          5           24
                                               ------     ------          ------     ------       ------          ------
Total single premiums                             524        262             100        154           59             160
Group life                                     ------     ------          ------     ------       ------          ------
and pensions APE                                   78         55              42         26           16              63
                                               ------     ------          ------     ------       ------          ------
Total UK APE                                      608        635             (4)        203          186               9
                                               ======     ======          ======     ======       ======          ======
INSTITUTIONAL FUND MANAGEMENT
UK Managed Funds
- Pooled Funds                                  8,327      9,171                      3,120        2,846
- Segregated Funds                              1,256        489                        897           12
                                               ------     ------                     ------       ------
                                                9,583      9,660                      4,017        2,858
UK Other                                          470        543                         56          127
                                               ------     ------          ------     ------       ------          ------
                                               10,053     10,203             (1)      4,073        2,985              36
                                               ======     ======          ======     ======       ======          ======
LEGAL & GENERAL GROUP PLC
UNAUDITED NEW BUSINESS PREMIUMS
NINE MONTHS TO 30 SEPTEMBER 2003
WORLDWIDE NEW BUSINESS
                                                   Nine months to                      Three months to
                                                   30 September         increase/       30 September           increase/
                                                 2003       2002       (decrease)     2003        2002        (decrease)
                                                   £m         £m           %            £m          £m            %
Annual premiums
Life and pensions:
- Life                                            138        131                         54           45
- Pensions                                         83        137                         24           41
                                               ------     ------          ------     ------       ------          ------
UK                                                221        268            (18)         78           86             (9)
- USA                                              39         43                         12           14
- Netherlands                                       8          8                          2            3
- France                                            6          4                          2            1
                                               ------     ------          ------     ------       ------          ------
Total life and pensions                           274        323            (15)         94          104            (10)
Retail investment business:
- UK                                               27         42                          8           11
                                               ------     ------          ------     ------       ------          ------
Total new annual premiums                         301        365            (18)        102          115            (11)
Single premiums
Life and pensions:
- Life                                            789      1,069                        275          293
- Pensions                                      1,400        885                        514          305
                                               ------     ------          ------     ------       ------          ------
UK                                              2,189      1,954              12        789          598              32
- USA                                              11          2                          3            1
- Netherlands                                      67         67                         21           14
- France                                           85         83                         36           30
                                               ------     ------          ------     ------       ------          ------
Total life and pensions                         2,352      2,106              12        849          643              32
Retail investment business:
- UK                                            1,410      1,299                        385          294
- France                                           18         23                          9            7
                                               ------     ------          ------     ------       ------          ------
Total single premiums                           3,780      3,428              10       1243          944              32
Annual Premium Equivalent (APE)
- UK life and pensions business                   440        464                        157          146
- Overseas life and pensions business              69         70                         22           22
                                               ------     ------          ------     ------       ------          ------
Total life and pensions business                  509        534             (5)        179          168               7
- UK retail investment business                   168        172                         46           40
- Overseas retail investment business               2          2                          1            1
                                               ------     ------          ------     ------       ------          ------
Total retail investment business                  170        174             (2)         47           41              15
                                               ------     ------          ------     ------       ------          ------
Worldwide APE                                     679        708             (4)        226          209               8
                                               ======     ======          ======     ======       ======          ======
LEGAL & GENERAL GROUP PLC
UNAUDITED NEW BUSINESS PREMIUMS
NINE MONTHS TO 30 SEPTEMBER 2003
OVERSEAS OPERATIONS
IN LOCAL CURRENCY
                                                  Nine months to          increase/     Three months to        increase/
                                                  30 September           (decrease)       30 September        (decrease)
                                                 2003       2002              %        2003         2002            %
USA ($m):
New annual premiums                                64         68                         19           25
Single premiums                                    18          3                          5            2
APE                                                66         68             (3)         20           25            (20)
Netherlands (Eur. m):
New annual premiums                                12         13                          4            5
Single premiums                                    96        106                         29           24
APE                                                21         23             (9)          6            7            (14)
France (Eur. m):
New annual premiums                                 9          7                          3            2
Single premiums                                   121        133                         50           52
Unit trusts                                        26         36                         12           12
APE                                                24         24               0          9            8              13
UK INDIVIDUAL APE BY CHANNEL

                                                       Nine months to 30 September 2003
                                               Annual     Single       Total APE
                                                   £m         £m              £m          %

Independent financial advisers                    106        177             283         53
Business partnerships                              92        100             192         36
Business partnerships direct                        9         16              25          5
Direct                                             15         15              30          6
                                               ------     ------          ------     ------
                                                  222        308             530        100
                                               ======     ======          ======     ======

                                                       Nine months to 30 September 2002
                                               Annual     Single       Total APE
                                                   £m         £m              £m          %

Independent financial advisers                    125        137             262         44
Business partnerships                             116        117             233         40
Business partnerships direct                       20         20              40          7
Direct                                             20         25              45          8
                                               ------     ------          ------     ------
                                                  281        299             580        100
                                               ======     ======          ======     ======

                                                      Three months to 30 September 2003
                                               Annual     Single       Total APE
                                                   £m         £m              £m          %
Independent financial advisers                     36         59              95         54
Business partnerships                              32         37              69         39
Business partnerships direct                        2          4               6          3
Direct                                              5          2               7          4
                                               ------     ------          ------     ------
                                                   75        102             177        100
                                               ======     ======          ======     ======


                                                      Three months to 30 September 2002
                                               Annual     Single       Total APE
                                                   £m         £m              £m          %

Independent financial advisers                     41         41              82         48
Business partnerships                              36         33              69         41
Business partnerships direct                        6          5              11          6
Direct                                              4          4               8          5
                                               ------     ------          ------     ------
                                                   87         83             170        100
                                               ======     ======          ======     ======



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