Legal & General reduce most With Profits bonus rates

Legal & General has announced the regular and final bonus rates on its With Profits policies. As a result of large falls in most major investment markets in 2008 and difficult conditions continuing into 2009, it has been necessary to reduce most bonus rates.

Over the past five years, assets invested for investors in Legal & General's With Profits fund have returned 27% before tax, outperforming the average balanced managed fund return of 21%. This is despite recording a decrease of 18% before tax in 2008.

With Profits gives significant protection to investors in volatile market conditions through its smoothing of returns and investment in a wide range of asset types. Investors continue to benefit from smoothing and we have declared total bonuses of £689 million in 2008 (£665m in 2007).

Carl Dowthwaite, Finance Director of Legal & General's With Profits business said: "With Profits continues to provide attractive long term returns and has given customers genuine protection from market volatility.

In current market conditions the core features of With Profits mean that it remains a good choice for investors. Our investment strategy puts us in a strong position to benefit from market recovery"