Legal & General has posted another year of growth on its with-profit assets, which were up 8.1 per cent pre-tax.
In the year to 31 December 2017 the company added bonuses worth £319m to its with profits policies.
The company said it has achieved a similar annual return on these assets over a 25-year timespan, while over 10 years the annual return is 6.3 per cent before tax.
Jackie Noakes, managing director savings at Legal & General Assurance Society, said: "Our with profits customers will benefit from another year of good investment returns for 2017 of 8.1 per cent.
"This demonstrates the benefits for our existing customers of investing in a fund with a broad range of assets. It also means that our with profits customers have continued to see steady growth on their investments over the long-term, in excess of inflation."
Pointing to the ABI UK Mixed Investment 40-85 per cent Shares sector average as posted by fund research house Lipper, Ms Noakes said L&G’s with-profits fund has exceeded the return on an average balanced managed fund based on a single premium investment.
It also exceeded the average inflation rate of 2.8 per cent over the same periods based on the UK Retail Prices Index.
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Lipper, ABI UK Mixed Investment 40-85% Shares sector average
L&G’s fund continues to maintain a broad mix of assets, similar to the asset allocation of previous years.
carmen.reichman@ft.com
