Strategic Analysis 2024
Legal &
General
UK's Leading Insurance & Asset Management Powerhouse
Strategic Analysis 2024
UK's Leading Insurance & Asset Management Powerhouse
Strategic Overview
Integrated financial services leader with £1.2tn+ AUM
UK's leading diversified insurer with £1.2-1.3 trillion AUM via LGIM, and a top-tier position in pension risk transfer.
£1.2T+
Assets Under Management
200%+
Solvency II Ratio
L&G's integrated model creates competitive advantages through end-to-end PRT capability, balance sheet strength, and scale in passive investing, reinforced by real asset origination.
PRT Leadership
£50-60B
Annual UK market
Workplace DC Flows
£40-50B
Target 2024-2028
Institutional Retirement
Leading UK & US PRT market positions
Asset Management
Unified LGIM+LGC business targeting £500-600M profits
Digital Transformation
AI, blockchain, and fintech integration
Business Architecture
Four-pillar strategy creating synergies across insurance, retirement, and asset management
PENSION RISK TRANSFER
Market leader in UK bulk annuity market, providing pension de-risking solutions for defined benefit pension schemes.
UK Target
£50-65B
US/Canada
£10B+
LGIM + LGC
Unified asset management business managing £1.1T+ across public and private markets, focusing on fee-based earnings.
AUM
£1.1T+
Profit Target
£500-600M
LIFETIME OFFERINGS
Enhanced lifetime retail offering leveraging Workplace DC platform for customer acquisition and lifetime value.
DC Flows Target
£40-50B
Timeline
2024-28
REAL ASSETS
Direct investments in build-to-rent, affordable housing, later-living, and energy transition infrastructure.
Private Markets
£85B
Target by 2028
£52B→£85B
Financial Analysis
Capital strength supporting dividend sustainability and growth
Digital Transformation
$391.9M ICT investment driving fintech integration and innovation
L&G invested $391.9M in ICT (2022), focusing on software, cloud, and consulting to drive digital transformation.
$391.9M
Total ICT Spend
7 Areas
Tech Functions
AI & ML
Big Data
Cloud Computing
Blockchain
L&G leverages emerging technologies to modernize operations, improve customer experience, and drive innovation across its business segments.
ATOM Platform
DATA HUBCentralized platform aggregating real-time data from diverse sources for predictive analytics.
estua-re Platform
BLOCKCHAINBlockchain-based PRT reinsurance platform on AWS, enabling near-instant settlements.
Bruntwood SciTech
INCUBATORJoint venture incubating tech startups in AI, IoT, and blockchain, with £580M funding.
Innovation Engine
Accelerators and incubators driving fintech integration
TECH INCUBATOR
Joint venture creating 20,000 science and tech jobs over a decade, with innovation campuses in Manchester, Birmingham, and major UK cities.
Funding Secured
£580M
Profit Growth
563%
RPA AUTOMATION
NICE RPA deployment improving call resolution times by 40%, driving 9% increase in core operating EPS in H1 2025.
Call Resolution
+40%
EPS Growth
+9%
STRATEGIC ALLIANCES
Partnerships with fintechs via accelerators, including Salary Finance for digital financial wellbeing, future-proofing offerings.
Cost Reduction
30%
Area
Back-office
PROFIT GROWTH
Bruntwood SciTech profit surged from £17.1M to £114M (2021-22), validating the incubator model's financial returns.
2021 Profit
£17.1M
2022 Profit
£114M
Competitive Landscape
Dominant position in UK retirement and asset management markets
PRT Market
Leader
Asset Mgmt
Top 3
DC Pensions
Growing
L&G's moat is built on brand trust, end-to-end PRT capability, balance sheet strength, and scale in passive investing.
• Scale: Leading passive platform drives low-cost manufacturing
• Origination: Proprietary real-asset pipeline
• Balance Sheet: 200%+ Solvency II ratios
• Integration: End-to-end PRT capability
Strategic Roadmap
Capital-light growth strategy with clear financial targets
£500-600M PROFITS
Unified asset management business targeting £500-600M operating profits by 2028, driven by private markets expansion.
Private Markets
£52B→£85B
Timeline
2028
£50-65B TARGET
Targeting £50-65 billion in UK PRT by 2028, supported by higher interest rates improving new-business economics.
UK Target
£50-65B
US/Canada
£10B+
AI & AUTOMATION
Continued investment in AI, machine learning, and automation to enhance customer experience and operational efficiency.
Focus
AI/ML
Goal
Efficiency
£5B+ TO SHAREHOLDERS
Committed to returning over £5B through dividends and buybacks (2025-28), supported by strategic divestments.
Total Returns
£5B+
2025 Buybacks
£500M
Legal & General's integrated business model, digital transformation initiatives, and market-leading positions create a powerful foundation for long-term value creation in UK financial services.
£1.2T+
Assets Under Management
+6%
Core Operating Profit Growth
$391.9M
ICT Investment