Legal & General Group (LGEN) Investor Update summary

Strategic Focus and Business Transformation

• Transitioned to a single global asset manager, combining LGIM and LGC, with disciplined capital allocation and a new leadership team.

• Exited non-core ventures and invested in new capabilities, including Taurus and Proprium Capital Partners, to sharpen business focus.

• Prioritized investment strategies, client channels, and targeted new hires to enhance execution on revenue and cost management.

• Asset management positioned as a core growth engine, leveraging scale, barbell investment strategies, and permanent capital.

• Leading UK Defined Contribution provider with 26% market share and £183bn AUM, supported by a strong workplace platform.

Financial Targets and Performance

• Targeting £500m–£600m operating profit by 2028, with 6–10% CAGR and 70–75% of earnings fee-related.

• Private Markets AUM projected to exceed £85bn by 2028, up from £57bn in FY24.

• Cumulative ANNR target of £100m–£150m (2025–2028), with over half underpinned by PRT, retail annuities, and DC flows.

• Revenue margin improved to 8bps in FY24, aiming for double digits by 2028.

• Cost-income ratio targeted below 70% by 2028, with FY24 at 74% and disciplined cost management.

Growth Drivers and Execution

• International expansion prioritized, aiming for over 50% of AUM to be international by 2028.

• Growth in private markets, real estate, and infrastructure through organic build, partnerships, and selective bolt-on acquisitions.

• Strategic partnerships, such as with Meiji Yasuda, to drive co-investment and global reach.

• Enhanced distribution network and client base, with recent wins in global financial institutions and wealth channels.

• Focus on maximizing high-potential capabilities, optimizing mature businesses, and incubating new strategies like the Climate Action Fund.