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40% Average surplus for L&G endowments

Legal and General says all its 25-year endowment policies maturing in March will hit their target amount, with an average surplus of almost 40 per cent.

It says with-profits bond sales increased by 25 per cent last year to £102m from £80m in 2006 while conventional with-profits life policyholders saw an investment return of 5 per cent.

The annual bonus for endowments increased from 0.75 per cent to 1.25 per cent on the sum assured.

With-profits managing director Mark Gregory said: “With-profits has proved its strengths for policyholders this year in volatile investment markets. Endowment customers with maturing policies continue to benefit from strong returns.

“The increase we have seen in sales this year emphasises the attractions of a strong with-profits provider for investors with a cautious attitude to risk who want long-term real returns.”

L&G has around 800,000 with-profits policyholders and about 29,000 endowments matured in 2007.

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