Legal & General has a limited appetite for liquidity risk and maintains at Group level sufficient liquid assets and standby facilities to meet a prudent estimate of the Group’s cash outflows over a period of two years, as identified through annual planning processes and taking into account the provision of facilities to operational businesses to accommodate their liquidity requirements in extreme stressed scenarios, e.g. pandemic and adverse weather events.

The liquidity position across our operational business units is very strong. On average during 2010, across the Group, a daily average cash balance of circa £1bn of overnight cash deposits was maintained as well as carrying significant holdings of liquid assets.

In addition, the Group has had in place for over 20 years a Commercial Paper programme providing the Group with access to short term funds as and when required.

As at 31 December 2010 the Group had in place undrawn committed syndicated and bilateral facilities in excess of £1bn provided by a number of the Group’s key relationship banks, maturing in 2012.

The Group has no outstanding bonds that mature before 2015. There are no restrictive covenants and no credit rating or share price triggers in respect of Group debt or liquidity positions.