Legal and General Endowment On Target

Legal and General has claimed that ‘with profits’ endowment payout is a massive 40% ahead of target for 2008.

Legal and General says all its 25-year endowment policies maturing in March will hit their target endowment amount, with an average surplus of almost 40 per cent.  Their with-profits bond sales increased by 25 per cent last year while conventional with-profits life policyholders saw an investment return of 5 per cent.  The annual bonus for an endowment increased from 0.75 per cent to 1.25 per cent on the sum assured.

Mark Gregory with-profits managing director has 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 return”.

Our view

An endowment started in 1983 and maturing this year generally will be on target.  It is any endowment started after 1988 that will have problems.  We wonder whether Legal and General or any other endowment providers will be a vocal about endowment returns in a few years time.

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