52 Subsidiaries.

Subsidiaries are those entities (including special purpose entities, mutual funds and unit trusts) over which the Group directly or indirectly has the power to govern the operating and financial policies in order to gain economic benefits. Profits or losses of subsidiary undertakings sold or acquired during the period are included in the consolidated results up to the date of disposal or from the date of gaining control. The interests of parties, other than the Group, in investment vehicles, such as unit trusts, are classified as liabilities and appear as ‘Net asset value attributable to unit holders’ in the consolidated balance sheet. The basis by which subsidiaries are consolidated in the Group financial statements is outlined in the basis of preparation (Note 1).

Future developments

IFRS 10, ‘Consolidated Financial Statements’, IFRS 11, ‘Joint Arrangements’ and IFRS 12, ‘Disclosure of Interests in Other Entities’ (effective in the EU for periods beginning on or after 1 January 2014). This suite of standards:

  • provides enhanced guidance when determining whether an entity is controlled and is therefore included within the consolidated financial statements;
  • provides a more realistic reflection of joint arrangements by focusing on the rights and obligations of the arrangement, rather than its legal form; and
  • enhances the disclosure requirements around interests in other entities.

We are currently assessing the impact which these new standards will have on the Group’s financial statements.

(i) Operating subsidiaries

In the opinion of the directors, the following subsidiaries principally affected the Company’s results as set out in the annual accounts and are consolidated in these financial statements. The information required to be provided under section 409 of the Companies Act 2006 is provided only in relation to these undertakings and the undertakings listed under Notes 52(ii) and 53. A complete list of undertakings will be annexed to the Company’s annual return which will be available from Companies House.

(XLS:) Subsidiaries – operating subsidiaries

Company name

Nature of business

Country of incorporation

1.

Directly held by Legal & General Group Plc. All other subsidiaries are held through intermediate holding companies.

Legal & General Finance PLC1

Treasury operations

England and Wales

Legal & General Resources Limited1

Provision of services

England and Wales

Legal & General Assurance Society Limited

Long term and general insurance

England and Wales

Legal & General Insurance Limited

General insurance

England and Wales

Legal & General Invest­ment Management Limited

Institutional fund manage­ment

England and Wales

Legal & General Assurance (Pensions Management) Limited

Long term business

England and Wales

Legal & General Pensions Limited

Reinsurance

England and Wales

Legal & General Partnership Services Limited

Provision of services

England and Wales

Legal & General (Portfolio Management Services) Limited

Institutional fund manage­ment

England and Wales

Legal & General Property Limited

Property manage­ment

England and Wales

Legal & General (Unit Trust Managers) Limited

Unit trust manage­ment

England and Wales

Nationwide Life Limited

Long term business

England and Wales

Suffolk Life Annuities Limited

Long term business

England and Wales

Suffolk Life Pensions Limited

Long term business

England and Wales

LGV Capital Limited

Private equity

England and Wales

Legal & General (France) SA

Long term business

France

Legal & General Bank (France) SA

Financial services

France

Legal & General Risques Divers (France) SA

Insurance company

France

Legal & General International (Ireland) Limited

Long term business

Ireland

Legal & General Nederland Levensverzekering Maatschappij NV

Long term business

Netherlands

Banner Life Insurance Company Inc

Long term business

USA

William Penn Life Insurance Company of New York Inc

Long term business

USA

Legal & General Invest­ment Management America Inc

Institutional fund manage­ment

USA

First British American Reinsurance Company II

Reinsurance

USA

First British Vermont Reinsurance Company

Reinsurance

USA

First British Vermont Reinsurance Company II

Reinsurance

USA

First British Bermuda Reinsurance Company II Limited

Reinsurance

Bermuda

The main territory of operation of subsidiaries incorporated in England and Wales is the UK. For overseas subsidiaries the principal country of operation is the same as the country of incorporation. All operating subsidiaries have a 31 December year end reporting date and are 100% owned.

(ii) Investment vehicles

The following mutual funds and partnerships have been consolidated as a result of the Group’s ability to exert control over the financial and operating activities of the investment vehicle so as to obtain economic benefits.

(XLS:) Subsidiaries – investment vehicles

Vehicle name

Vehicle type

Territory

Year end reporting date

% of equity shares held by the Group

1.

Lagoon Finance Limited and Trees S.A. are consolidated on the basis that the Group has the power to govern the financial and operating policies and has the rights to receive 100% of the economic benefits. Only the controlled cell of the Trees S.A. investment vehicle is consolidated.

Chineham Shopping Centre Limited Partnership

Limited partnership

England and Wales

31/12/2012

100.0

Ealing Shopping Centre Limited Partnership

Limited partnership

England and Wales

31/12/2012

100.0

Gresham Street Limited Partnership

Limited partnership

England and Wales

31/12/2012

100.0

Legal & General City Offices Limited Partnership

Limited partnership

England and Wales

31/12/2012

100.0

Legal & General Emerging Markets Government Bond (US$) Index Fund

Debt security unit trust

England and Wales

10/11/2012

100.0

Legal & General Invest­ment Management Global Macro Fund Plc

Open ended investment company

Ireland

31/12/2012

100.0

Legal & General Invest­ment Management (Ireland) Risk Management Solutions Plc

Open ended investment company

Ireland

31/12/2012

100.0

Legal & General Life Fund Limited Partnership

Limited partnership

England and Wales

31/12/2012

100.0

Northampton Shopping Centre Limited Partnership

Limited partnership

England and Wales

31/12/2012

100.0

Performance Retail Limited Partnership

Limited partnership

England and Wales

31/12/2012

100.0

Performance Retail Unit Trust

Property unit trust

Jersey

31/12/2012

100.0

Performance Shopping Centre Limited Partnership

Limited partnership

England and Wales

31/12/2012

100.0

Legal & General Invest­ment Management UK Smaller Companies Alpha Fund Plc

Open ended investment company

Ireland

31/12/2012

99.9

Legal & General UK Special Situations Trust

Equity unit trust

England and Wales

14/09/2012

99.9

LGV 7 Private Equity Fund Limited Partnership

Private equity partnership

England and Wales

31/12/2012

99.7

LGV 6 Private Equity Fund Limited Partnership

Private equity partnership

England and Wales

31/12/2012

99.5

Legal & General Global Environmental Enterprises Fund

Equity unit trust

England and Wales

01/12/2012

95.9

Legal & General Sterling Corporate Bond Index Fund

Debt security unit trust

England and Wales

20/05/2012

94.1

Legal & General Global Macro Themes Fund

Mixed asset unit trust

England and Wales

14/09/2012

93.6

Legal & General UK Absolute Fund

Mixed asset unit trust

England and Wales

30/01/2012

93.2

Legal & General European Absolute Fund

Mixed asset unit trust

England and Wales

30/01/2012

85.8

Legal & General Asian Income Trust

Equity unit trust

England and Wales

10/09/2012

85.7

Legal & General North American Trust

Equity unit trust

England and Wales

16/01/2012

85.6

Legal & General Growth Trust

Equity unit trust

England and Wales

15/05/2012

84.5

Legal & General Pacific Growth Trust

Equity unit trust

England and Wales

18/09/2012

81.9

ARC Property Fund Unit Trust

Property unit trust

Jersey

31/12/2012

80.0

Legal & General Global Emerging Market Index Fund

Equity unit trust

England and Wales

31/07/2012

74.3

Legal & General Equity Trust

Equity unit trust

England and Wales

15/08/2012

71.0

Legal & General European Trust

Equity unit trust

England and Wales

28/07/2012

67.8

Legal & General Pacific Index Trust

Equity unit trust

England and Wales

25/03/2012

67.4

Legal & General Global Growth Trust

Equity unit trust

England and Wales

15/01/2012

65.8

Legal & General European Index Trust

Equity unit trust

England and Wales

31/07/2012

61.3

Legal & General High Income Trust

Fixed interest unit trust

England and Wales

05/09/2012

60.1

Legal & General US Index Trust

Equity unit trust

England and Wales

05/12/2012

58.3

Legal & General Invest­ment Management Liquidity Funds Plc

Open ended investment company

Ireland

31/12/2012

57.2

Legal & General UK Smaller Companies Trust

Equity unit trust

England and Wales

18/06/2012

56.5

Legal & General UK Property Ungeared Fund Limited Partnership

Limited partnership

England and Wales

31/12/2012

55.1

Legal & General UK Active Opportunities Trust

Equity unit trust

England and Wales

14/04/2012

52.5

Legal & General UK Equity Income Fund

Equity unit trust

England and Wales

24/01/2012

52.5

Lagoon Finance Limited1

Limited liability company

Ireland

31/12/2012

Trees S.A.1

Limited liability company

Luxembourg

31/12/2012