With-profits Bonus 2007

Legal & General Group Plc 21 February 2008 21 February 2008 Legal & General With-profits Bonus Announcement 2007 Highlights: Total Bonuses declared of £665m - up 12% on 2006 With-profits bond sales increased by 25% in 2007 Investment return of 5% gross for Conventional With-profits Life policyholders1 25 year endowments maturing in March 2008 will hit their target amount with an average surplus of almost 40% Green and amber endowments up to 72% (up from 60% in 2006) 2 Annual bonus for endowments increased from 0.75% to 1.25% on the sum assured Legal & General With-profits Managing Director Mark Gregory said: 'With-profits has proved its strengths for policyholders this year in volatile investment markets. Endowment customers with maturing policies continue to benefit from strong returns and 25 year policies maturing in March 2008 will receive an average surplus of almost 40%. 'The increase we have seen in sales this year emphasises the attractions of a strong with-profits provider for investors with a cautious attitude to risk who want long-term real returns. 'Our active approach to managing the fund meant that in 2007 we switched over £3bn between asset classes to deliver strong investment returns for holders. We are fully committed to with-profits and have structured our business to support these products.' Legal & General has approximately 800,000 with-profits policyholders and approximately 29,000 endowments matured in 2007. Notes: 1 Return generated in 2007 on assets backing With-profits policies, stated pre-tax and charges. 2 RAG status based on the re-projection mailings completed in 2007 for policies maturing over the next five years compared to RAG status based on the fourth round of re-projection mailings completed in 2006. 25 year savings endowment, male aged 29 at entry, £50pm 1/3/83 to 1/3/08 Maturity value £44,966 (7.9% annualised return vs. inflation of 3.3%, real return of 4.4%) 1/3/83 to 1/3/07 Maturity value £42,129 (8.1% annualised return vs. inflation of 3.3%, real return of 4.6%) 1/3/82 to 1/3/07 Maturity value £45,399 (8.0% annualised return vs. inflation of 3.3%, real return of 4.4%) For further examples of payouts please see full tabular data available from our Media Centre at: http://www.legalandgeneralmediacentre.com/ ENDS Notes to Editors About Legal & General Legal & General Assurance Society Limited is authorised and regulated by the Financial Services Authority. Registered in England No 166055. Registered office: One Coleman Street, London EC2R 5AA. Legal & General is a leading UK risk, savings and investment group. Founded over 170 years ago, Legal & General today provides life assurance and other financial protection products, annuities and long-term savings products including ISAs and pensions. With over £250 billion in funds under management, it is also the largest investor for UK pension funds. Legal & General has over 5.5 million UK customers. Our products are sold through over 30 bank and building society relationships, through Independent Financial Advisers and also directly to customers. Legal & General Assurance Society Limited, our principal operating company, is one of Europe's top rated life companies for financial strength, with an AA+ rating from Standard & Poor's and Aa1 from Moody's. Enquiries to: Institutional Investors: Jonathan Maddock, Head of Investor Relations 020 3124 2150 Nicola Marshall, Investor Relations Manager 020 3124 2151 Media: John Godfrey, Corporate Communications Director 020 3124 2090 Anthony Carlisle, Citigate Dewe Rogerson 07973 611888 Richard King, Head of Media Relations 020 3124 2095 Rebecca Perry, PR Manager 01737 375353 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. This information is provided by RNS The company news service from the London Stock Exchange
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