Legal & General Group (LGEN) Investor Day 2024 summary

Strategic Progress and Business Focus

• Sharpened focus on core businesses, disposing of non-core assets and acquiring new capabilities, with proceeds reinvested or returned to shareholders.

• Launched private market funds targeting £20 billion in assets by 2028 and affordable homes initiatives, enhancing fee margins and seeding new strategies.

• Leadership team restructured with new heads for asset management and retail divisions to accelerate growth.

• Disciplined capital allocation prioritizes investments above a 14% return hurdle or returns excess to shareholders via dividends and buybacks.

• Completed a £200 million share buyback in 2024, with further capital returns planned based on capital not deployed on strain.

Institutional Retirement and PRT Market Outlook

• Institutional retirement remains the largest business, with over £10 billion in PRT deals written or exclusive in 2024 and record performance in the U.S. and Canada.

• UK PRT market expected to remain strong, with £50–65 billion targeted for 2024–28 and a strong pipeline for 2025.

• Global PRT market opportunity estimated at £1 trillion over the next decade, with only 12% of the £5.3 trillion market currently insured.

• Market share exceeds 25% in the UK, with strong positions in the U.S. and Canada and a focus on both large and small schemes.

• Flow proposition streamlines transactions for smaller schemes, supporting growth and higher margins in this segment.

Financial Performance, Guidance, and Value Creation

• Operating profit from institutional retirement exceeds £1 billion per annum, with a 5–7% CAGR targeted for FY23–FY28.

• 2024 PRT business written at an IFRS new business margin of 7% and IRR above 14%, with UK capital strain at just 1%.

• Additional value of at least £1 billion expected over five years from bond portfolio optimization and asset rotation.

• Asset management fees from managing the annuity book add £50 million per year in value.

• On track to deliver group operating EPS CAGR of 6–9% (FY24–FY27) and operating ROE above 20% (2025–27), with cumulative Solvency II capital generation of £5–6 billion from 2025 to 2027.