Legal & General's with-profits bonuses rose 12% last year to £665m.
A spokeswoman for Legal & General says the provider partly shifted from equities and property in the last year to fixed assets. The provider switched more than £3bn between asset classes in 2007, including about £1.5bn from equities “at what proved to be almost at the top of the market”.
Meanwhile, with-profits bonds sales for the group rose 25% in a volatile market, from just over £80m in 2006, to £102m last year.
Mark Gregory, with-profits managing director at Legal & General, says: “The increase we have seen in sales this year emphasizes the attractions of a strong with-profits provider for investors with a cautious attitude to risk who want long-term real returns.”
Conventional with-profits life policyholders received a 5% return and the annual bonus for endowments increased from 0.75% to 1.25% on the sum assured.
Legal & General also says 25 year endowments maturing in March 2008 will hit their target amount with an average surplus of almost 40%.
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