L&G is to increase payouts after double-digit returns

Legal & General's with-profits fund returned 16% net of charges and tax over 2005, despite cutting t...

Legal & General's with-profits fund returned 16% net of charges and tax over 2005, despite cutting the equity exposure by 3% during the year. At the end of 2005, the fund has 49% in equities, 33% in bonds and 18% in property, compared with 52%, 29% and 19% at the end of the previous year. This is the third year in succession in which the company's with-profits fund has achieved double-digit investment returns. Reflecting this strong performance, the group has increased the majority of terminal bonus rates and generally held interim rates at current levels. Rates on conventional endowmen...