Investing in a broad spread of assets has helped to deliver 9.6 per cent growth to Legal and General’s with profits policyholders for 2014, Jackie Noakes has said.
Ms Noakes, managing director for mature savings, Legal and General Assurance Society, said there had been pre-tax growth of 9.6 per cent on assets held by its with profits policyholders for the 12 months to 31 December 2014.
The company added bonuses worth £387m to its with profits policies last year, down from £490m in 2013 – which Legal & General attributed to a smaller number of mortgage endowment policies maturing in 2014 compared to the previous year.
Legal & General has approximately 445,000 with profits customers.
The announcement came after both the Friends Life FLAS with profits fund and the Friends Life FLC with profits fund earned a return of 9.3 per cent over 2014.
Nicholas Round, managing director of Shropshire-based Trēowe Wealth Advisers, said: “It is difficult over the longer term for the insurance companies to deliver good returns with this investment vehicle.”