Legal & General Group (LGEN) Investor Update summary

Strategic Priorities and Focus

• Executing a strategy centered on sustainable growth, operational improvements, and cost efficiencies, with a focus on building a simpler, better-connected group and reducing non-core assets, including the sale of the U.S. protection business.

• On track to deliver three-year group targets, including returning over £5 billion to shareholders via dividends and buybacks.

• No plans for large M&A outside core strengths; focus remains on organic growth and leveraging existing capabilities, with small bolt-on acquisitions possible.

Business Performance and Market Position

• Institutional Retirement delivered strong volumes, exceeding last year, with a 25% UK market share and over £10 billion written in 2024.

• Leading UK DC manager with £205 billion in DC investments and over £300 billion in UK retail wealth, managing the largest UK commercial master trust.

• Asset management achieved £29 million in annualized net new revenue, with private market AUM at £71 billion and rising revenue margins.

• Retail annuities and Workplace DC assets are expected to drive long-term profitability, with Retail annuities to replace PRT over time.

Growth Opportunities and Financial Targets

• UK retirement assets forecast to grow from £3.5 trillion to £5.5 trillion by 2034, with DC AUM targeted to double to £400 billion and Workplace DC assets projected to reach £1.5 trillion.

• Retail operating profit targeted to grow 4–6% per annum to 2028, with Workplace DC and Asset Management profits projected to triple and fee-based earnings to rise from under 15% to around 40% of total Retail and related Asset Management profit by 2034.

• Workplace net flows of £5 billion YTD, with a target of £40-50 billion for 2024-2028, 99% scheme retention, and 35 new schemes won in 2024.