21 Feb 2019
Legal & General with profits announcement
Legal & General today announces the bonus rates on its with profits policies for the 12 months to 31 December 2018.
In challenging investment markets, such as those we saw in 2018, customers benefit from smoothing which means we’ve been able to reduce the impact of the 2018 investment experience by topping up bonuses using some of the investment returns the With Profits Fund earned in previous years.
The company added bonuses worth £355 million to its with profits policies in 2018 (£319 million added in 2017).
In 2018, the assets held for our with profits customers returned -3.3% before tax. However, over 25 years the assets have returned 7.1% per annum before tax and over 10 years the annual return is 8.0% before tax. This has exceeded the average inflation rate of 2.8% and 3.0% over the same periods based on the UK Retail Prices Index. It has also exceeded the return on an average balanced managed fund based on a single premium investment.
Download and read the full press release via the link below
Over the long term our customers have seen strong growth on their investments. The bonuses we are declaring today show how customers in with profits benefit from smoothing in challenging investment markets.
Claire Singleton, CEO Mature Savings