Highlights for 2012.

Graffiti on a wall saying Happiness (photo)

OUR MISSION IS TO PROVIDE PEOPLE WITH FINANCIAL SOLUTIONS AND SERVICES THAT ALLOW THEM TO PLAN FOR THEIR FUTURE, TO DEAL WITH THE MOST EXCITING, CRITICAL OR DIFFICULT FINANCIAL MOMENTS IN THEIR LIVES.

OUR KEY PERFORMANCE INDICATORS

OPERATING PROFIT BEFORE TAX

£1,087m

(2011: £1,053m)

TOTAL SHAREHOLDER RETURN (TSR)

50%

(2011: 11%)

NET CASH GENERATION

£865m

(2011: £846m)

See Net cash section for a full breakdown of net cash generation.

INSURANCE GROUPS DIRECTIVE (IGD) CAPITAL SURPLUS

£4.1bn

(2011: £3.8bn)

Figures after accrual of proposed dividend, based on draft unaudited regulatory returns.

RETURN ON EQUITY

15.5%

(2011: 14.9%)

EUROPEAN EMBEDDED VALUE (EEV) PER SHARE

173p

(2011: 167p)

Figures including embedded value of LGIM.

FULL YEAR DIVIDEND

7.65p

(2011: 6.40p)

EMPLOYEE ENGAGEMENT INDEX

78%

(2011: 73%)

OTHER GROUP INFORMATION

PROFIT BEFORE TAX

£1,036m

(2011: £953m)

IFRS profit before tax attributed to shareholders.

FINANCIAL STRENGTH

AA-

(2011: AA-)

Standard & Poor’s Financial Strength rating for Legal & General Assurance Society Limited.

BUSINESS HIGHLIGHTS

PROTECTION AND ANNUITIES

SAFEGUARDS CUSTOMERS AGAINST FINANCIAL RISKS

Our Protection and Annuities businesses assume customers’ financial risks arising from defined events such as death, injury, unemployment, illness or household damage, while our annuities products protect individuals from the risk of outliving their savings in retirement. We continue to be at the forefront of pension schemes de-risking after over 25 years in the market.

FOR MORE INFORMATION SEE SALES AND ASSETS SECTION

ANNUITIES NEW BUSINESS APE

£234m

(2011: £251m)

GROUP PROTECTION NEW BUSINESS APE

£70m

(2011: £46m)

INVESTMENT MANAGEMENT

INVESTING ON BEHALF OF INSTITUTIONAL AND RETAIL CUSTOMERS

Legal & General Investment Management (LGIM) is the largest manager of UK sourced pension assets and one of the  largest investors in the UK stock market with responsibility for approximately 4% of all London-listed equities on behalf of its customers.

FOR MORE INFORMATION SEE SALES AND ASSETS SECTION

TOTAL ASSETS UNDER MANAGEMENT (AUM)

£406bn

(2011: £371bn)

INTERNATIONAL ASSETS UNDER MANAGEMENT (AUM)

£42.7bn

(2011: £31.5bn)

SAVINGS

FINANCIAL PLANNING, SAVINGS AND INVESTMENTS

Our Savings business is a manufacturer and assembler of modern, flexible investment products, allowing individuals to save to meet the costs of specific future events or to give a planned income in retirement.

FOR MORE INFORMATION SEE SALES AND ASSETS SECTION

TOTAL ASSETS UNDER ADMINISTRATION (AUA)

£70.1bn

(2011: £64.9bn)

NEW BUSINESS APE

£1,456m

(2011: £1,262m)

US PROTECTION

OUR SCALE PROTECTION BUSINESS OVERSEAS

Our US Protection business is a top five term assurance provider in the US, and has grown its core term product over 12 consecutive quarters. Our core market consists of higher net worth customers, serviced through the Broker General Agent distribution channel.

FOR MORE INFORMATION SEE SALES AND ASSETS SECTION

PROTECTION APE

£90m

(2011: £69m)

GROSS PREMIUM INCOME

£584m

(2011: £522m)