Press releases


Carole Avis - Managing Director With Profits
Carole Avis
Managing Director With Profits

30 May 2013

Carole Avis - Managing Director With Profits
Carole Avis
Managing Director With Profits

Legal & General today announced it has increased final bonuses for with profits customers whose policies mature on or after 30 May 2013. The interim declaration will increase payout values for thousands of Legal & General with profits customers this year.

As a result of strong investment performance during 2013, in particular on equity investments, Legal & General has from today increased final bonus rates on most bond, pension and endowment products.

Commenting on the announcement Carole Avis, Managing Director With Profits, Legal & General said; "Since the start of this year we've achieved better than expected returns on the assets held for our with profits policyholders, due mainly to the performance of equity investments.

We're delighted that our with profits customers will benefit from the increased final bonus rates.

During 2013 approximately 46,000 endowment policies are expected to mature, with the largest volumes expected in June and July. This interim declaration will enable a significant number of endowment customers to benefit from the strong investment performance since the end of 2012.

It means the vast majority of with profits policyholders will see an increase in the value of their policy and no policy value will reduce.

We believe with profits remains a good choice for investors. It provides a steady growth from a spread of investments over the longer term with the additional benefit of some downside protection, whether invested in a bond, pension or endowment."

Endowment mortgages...

Endowment mortgage maturity payouts will increase by 2.3% on average.

The endowment mortgage example shown below shows the increased maturity value.


25 year mortgage endowment maturing on 1 June 2013: (male aged 29 at entry)

Endowment mortgage example.
PaymentTotal paidCurrent maturity valueIncreased maturity valueIncrease in value
 £50 per month level premium£ 15,000  £30,387 £31,085£698 


Why are 25 year endowment mortgage maturities set to peak this year?

Many policies were taken out 25 years ago to take advantage of Joint MIRAS tax relief for unmarried couples before it was ended in August 1988. 

These policies will reach maturity in Q3 this year.

In 2013 approximately 46,000 Legal & General mortgage endowment policies will mature.

Next year (2014) approximately 30,000 mortgage endowments are due to mature.

With Profits Bond investors...

£10,000 invested in a With Profits Growth Bond 10 years ago has a cash in value of £16,949 (as at 1st June) - an increase in value of £414 compared to its previous level (£16,535).

Pension investors...

Pensions (Pension Plan, male retiring on 1 June at age 65, £200 per month)

Pension Plan, male retiring on 1 June at age 65, paying £200 per month

Example Pension Plan Retirement value.
Plan TermCurrent retirement valueIncreased retirement valueIncrease in value
 10 year£30,248 £31,252 £1,004
15 year£47,538£49,024£1,486
20 year £71,910 £74,389£2,479 


Legal & General has approximately 500,000 with profits customers and we will continue to keep bonus rates under review.

Notes to editors

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

  • Past performance is not a guide to future performance.
  • The value of investments may fall as well as rise and investors may get back less than the amount originally invested.
  • What a customer gets back depends on future bonus rates, which may change.
  • We may apply an early surrender charge and/or market value reduction if a customer cashes in all or part of their policy or moves out of with profits. This would reduce the amount paid.

For more information please contact:

Mike Connolly

Mike Connolly

About Legal & General

Legal & General Assurance Society Limited.

Registered address:
One Coleman Street
London EC2R 5AA.
Registered in England 166055.