L&G maintains bonuses after decent 2006 with-profits return

Legal & General upped its allocations to equities and property in its with-profits fund during 2006,...

Legal & General upped its allocations to equities and property in its with-profits fund during 2006, producing an 11.2% pre-tax return over the year. Despite this representing the fourth successive year of double-digit performance, it is actually the lowest return since 2002. Returns in 2003, 2004 and 2005 were 14%, 12% and 19% respectively. As a result of the performance, the group has maintained annual rates on its conventional business at 0.75% on sum assured and 1.25% on existing bonuses. Overall, the group has announced just under £600m in bonuses for 2006, with the terminal payment ...