Further to our annual bonus rate announcement in February 2020, and following the falls in investment values as a result of COVID-19, we have decreased final/terminal bonus rates for many of our with profits products. The new final bonus rates will apply from 21 May 2020.

A final bonus may be added to the value of your policy when you take money out of the With Profits Fund. It’s paid to make up any difference between the amount we have guaranteed to pay and the overall amount we decide is fair to pay. Final bonus rates are not guaranteed and can change at any time.

Please note, With Profits Annuities and With Profits Income Bonds are not eligible for a final bonus and are not affected by this.

Information on investment performance for 2020 will be provided alongside the February 2021 annual bonus declaration.


On Thursday 20 February 2020, we announced bonus rates for all our with profits plans for 2019 after delivering a return of 12% on the assets we hold for with profits policyholders. This return is before we have taken off investment expenses, tax and any policy charges. Over the past 10 years, assets invested for customers in Legal & General’s With Profits Fund have delivered a return of 8% per annum before tax. Past performance is not a guide to future performance. 


Global equities produced healthy gains in 2019. US equities performed well, rebounding from a turbulent end to 2018. US market confidence improved over the year as the expected interest rate rises from the US Federal Reserve did not take place and rates were reduced. The worldwide impacts of the trade dispute between US and China eased as a ‘phase one’ trade deal with China brought a sharp rally in equity markets across the globe during December.

UK equities underperformed global markets during 2019 as uncertainty over Brexit negotiations overshadowed the market for much of the year. However, a victory for the Conservatives in the December general election led to a year-end rally, while sterling also gained ground against other major currencies over the fourth quarter. Despite signs of slowing economic growth and manufacturing activity earlier in the year, European equities improved towards the end of 2019 following interest rate cuts from the European Central Bank and the positive progress on the US/China trade dispute.

Returns from bond markets were relatively modest during 2019. Aside from May and August when a marked rise in financial market volatility triggered demand for ‘safe-haven’ assets, government bonds underperformed equities. Although many major central banks have loosened monetary policy, underpinning bond markets, investors have preferred higher yielding alternatives to major government bonds. In the UK, inflationary pressures have remained subdued and index-linked gilts marginally underperformed conventional securities as a result.

In the UK commercial property sector, good industrial and office sector performance offset weakness in the retail sector. The latter seeing a decline in capital values on the high street and in shopping centres. In the industrial and office sectors, capital growth and total returns have been positive over the last 12 months. Overall, the investment market continues to attract capital from yield-driven international investors, particularly Asian investors focusing on London.


The graph below shows how the assets we hold for our with profits policies have performed for each of the last eight calendar years, 1 January to 31 December. The performance is a combination of the returns received from all the investments. These investment returns are before we’ve taken off investment expenses, tax and any policy charges. You can find more information about deductions and policy charges in your policy documentation.

Please note that the returns used to calculate bonuses for individual plans over the years will not be the same as those shown below. This may be for a number of reasons, one of which is to reflect the varying features and benefits of different with profits products.

Past With Profits performance  

Please note that all investment returns are rounded to the nearest percent.

Past performance is not a guide to future performance.

You can find out specific product details by clicking on the link for the relevant product at the bottom of this page.


With profits invests mainly in the following asset classes:

We invest in a mix of assets, which can help to reduce the impact of poor performance by any one asset type. As the assets react differently to economic factors, when one is not performing well, another may be performing better.

The pie chart below shows the mix of assets for our with profits policies as at 31 December 2019.

With Profits Fund asset mix  

To see the investment returns and asset mixes for specific with profits products, please visit the following pages:
Bonds bonus declaration

Endowments and savings plans bonus declaration

Pensions and annuities bonus declaration