47 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 year 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).

(i) Operating subsidiaries

In the opinion of the directors, the following subsidiaries principally affected the group’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 Note 47(ii) and Note 48. A complete list of undertakings will be annexed to the Company’s annual return which will be available from Companies House.

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 and 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

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

Cofunds (Holdings) Limited

Provision of services

England and Wales

Investment Discounts Online Limited

Provision of services

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

Global Index Advisors Inc

Institutional fund management

USA

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 II

Reinsurance

USA

First British Bermuda Reinsurance Company II Limited

Reinsurance

Bermuda

Legal & General Reinsurance Company Limited

Reinsurance

Bermuda

Legal & General Investment Management Asia Limited

Institutional fund management

Hong Kong

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 apart from Investment Discounts Online Limited, which is 95% 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.

Vehicle name

Vehicle type

Territory

Year end reporting date

% of equity shares held by the Group

1.

Lagoon Finance Limited is 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.

Antham 1 Limited

Limited company

England and Wales

31/12/2014

100.0

Chineham Shopping Centre Limited Partnership

Limited partnership

England and Wales

31/12/2014

100.0

Ealing Shopping Centre Limited Partnership

Limited partnership

England and Wales

31/12/2014

100.0

Gresham Street Limited Partnership

Limited partnership

England and Wales

31/12/2014

100.0

Legal & General City Offices Limited Partnership

Limited partnership

England and Wales

31/12/2014

100.0

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

Open ended
investment company

Ireland

31/12/2014

100.0

Legal & General Life Fund Limited Partnership

Limited partnership

England and Wales

31/12/2014

100.0

Northampton Shopping Centre Limited Partnership

Limited partnership

England and Wales

31/12/2014

100.0

Performance Retail Limited Partnership

Limited partnership

England and Wales

31/12/2014

100.0

Performance Retail Unit Trust

Property unit trust

Jersey

31/12/2014

100.0

Procession House One Unit Trust

Property unit trust

Jersey

31/12/2014

100.0

Synergy Gracechurch Holdings Limited

Limited company

Jersey

31/12/2014

100.0

LGV 7 Private Equity Fund Limited Partnership

Private equity partnership

England and Wales

31/12/2014

99.7

LGV 6 Private Equity Fund Limited Partnership

Private equity partnership

England and Wales

31/12/2014

99.5

Legal & General SICAV

Societe d’Investissement A Capital Variable

France

31/12/2014

93.3

Legal & General Growth Trust

Equity unit trust

England and Wales

15/05/2014

90.2

Legal & General Global Environmental Enterprises Fund

Equity unit trust

England and Wales

01/12/2014

89.0

Legal & General Investment Management
Global Corporate Bond Fund

Open ended
investment company

England and Wales

31/12/2014

84.3

Legal & General Asian Income Trust

Equity unit trust

England and Wales

10/09/2014

75.3

Legal & General European Trust

Equity unit trust

England and Wales

28/07/2014

70.8

Legal & General UK Special Situations Trust

Equity unit trust

England and Wales

14/09/2014

62.6

Legal & General UK Smaller Companies Trust

Equity unit trust

England and Wales

18/06/2014

61.1

Legal & General High Income Trust

Debt security unit trust

England and Wales

05/09/2014

60.5

Legal & General Mixed Investment 40-85% Fund

Mixed asset unit trust

England and Wales

30/09/2014

57.7

Legal & General UK Equity Income Fund

Equity unit trust

England and Wales

24/01/2014

57.1

Legal & General European Index Trust

Equity unit trust

England and Wales

31/07/2014

55.9

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

Debt security unit trust

England and Wales

10/11/2014

54.9

Legal & General Global Emerging Market
Index Fund

Equity unit trust

England and Wales

31/07/2014

53.9

Legal & General Japan Index Trust

Equity unit trust

England and Wales

24/10/2014

53.3

Legal & General Investment Management
Liquidity Funds Plc

Open ended
investment company

Ireland

31/12/2014

50.8

Legal & General UK Property Ungeared
Fund Limited Partnership

Limited partnership

England and Wales

31/12/2014

49.6

Legal & General Pacific Index Trust

Equity unit trust

England and Wales

25/03/2014

49.3

Legal & UK Alpha Trust

Equity unit trust

England and Wales

18/06/2014

45.4

L&G US Index Trust

Equity unit trust

England and Wales

05/12/2014

45.0

Legal & General Ethical Trust

Equity unit trust

England and Wales

12/12/2014

44.9

Legal & Fixed Interest Trust

Debt security unit trust

England and Wales

05/09/2014

38.9

Legal & Dynamic Bond Trust

Mixed asset unit trust

England and Wales

05/09/2014

32.6

Legal & General Sterling Corporate Bond
Index Fund

Debt security unit trust

England and Wales

20/05/2014

31.2

The Leisure Fund Limited Partnership

Limited partnership

England and Wales

31/12/2014

27.6

Lagoon Finance Limited1

Limited liability company

Ireland

31/12/2014

(iii) Subsidiaries with non-controlling interests greater than 5%

Summarised financial information for subsidiaries with non-controlling interests greater than 5% is shown below.

2014

Property partnerships
£m

Unit trusts
£m

Total
£m

Dividends paid to non-controlling interests

 

 

 

 

Current assets

24

33,746

33,770

Non-current assets

489

1,749

2,238

 

 

 

 

Current liabilities

17

14,238

14,255

Non-current liabilities

92

21,257

21,349

 

 

 

 

Profit after tax

9

9

2013

Property partnerships
£m

Unit trusts
£m

Total
£m

Dividends paid to non-controlling interests

 

 

 

 

Current assets

61

23,974

24,035

Non-current assets

425

882

1,307

 

 

 

 

Current liabilities

14

11,578

11,592

Non-current liabilities

71

13,278

13,349

 

 

 

 

Profit after tax

21

21