Legal & General Group Plc · LSE:LGEN
Legal & General — Investor Day (2025)
58 slides from Legal & General's investor day presentation, 2025
Slide 1: Retail deep dive
Legal & General Retail deep dive
Slide 2: Forward looking statements
Forward looking statements This document may contain certain forward-looking statements relating to L&G, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty because they rela
Slide 3: Agenda
Agenda 1. Introduction António Simões, Group CEO 2. Retail Laura Mason, Retail CEO 3. Financial outlook Jeff Davies, Group CFO Followed by Q&A 3
Slide 4: Introduction
Introduction António Simões, Group CEO 4
Slide 5: A growing, simpler, better-connected L&G
A growing, simpler, better-connected L&G Eric Adler Deep Dive in June 2025 Sharper Focus Asset Management = Sustainable Growth Institutional Retail Retirement Andrew Kail Laura Mason Enhanced Deep Dive in Returns Deep Dive December 2024 today 5
Slide 6: Continued execution of our strategy
Continued execution of our strategy • Corporate Investments Unit now at £500m assets (originally c.£2bn) Sharper • Sale of US Protection to Meiji Yasuda on track for completion Focus • Operational improvements and organisational transformation driving cost efficiencies • Strong UK PRT volumes YTD de
Slide 7: Institutional Retirement: the market leader in PRT
Institutional Retirement: the market leader in PRT L&G PRT volumes YTD £0.8bn £11.0bn £10.2bn Recent transactions H2 YTD £1.6bn (Signed September 2025) + To be announced H1 > £4bn (Signed October 2025) UK International Total 7
Slide 8: Increasing momentum in Asset Management
Increasing momentum in Asset Management Latest view Targets £29m £100-150m • Investments in growth delivering good client wins ANNR1 (Q3 YTD 2025) (2025-2028) • c.£13m net new revenues from Retail (Q3 YTD 2025) Private £71bn £85bn+ • >€600m first close of Digital Infrastructure Fund Markets AUM2 (Q3
Slide 9: A £300bn+ leader in UK Retail Wealth
A £300bn+ leader in UK Retail Wealth £205bn DC manager + c.£100bn wider Retail assets DC Investments UK Wholesale (via £205bn Investment manager £75bn Asset Management) £108bn Workplace DC £19bn Retail Annuities Investments + Administration Master Trust £39bn Investments, Administration £7bn Lifetim
Slide 10: £5.5trn UK retirement opportunity
£5.5trn UK retirement opportunity Structural trends unlocking new opportunities Forecast growth in UK Retirement assets1 c.1.6x £5.5trn Shift to individual responsibility for savings Drawdown Retail Annuities Ageing demographics £3.5trn SIPPs Drawdown Retail Annuities SIPPs Supportive regulatory env
Slide 11: Attractive growth over the long term
Attractive growth over the long term Financial outcomes Reliable growth in earnings The UK’s leading 1 from Retail businesses DC & Retirement platform Accumulation At-retirement Decumulation Growth in fee-based earnings emerging particularly in Asset Management 2 c.13 million customers1 More than 40
Slide 12: DC assets deliver growing capital-light earnings
DC assets deliver growing capital-light earnings DC assets to double over next 10 years1 #1 UK DC manager with full coverage of DC value chain £1.5trn >95% Workplace assets retained in-house High quality capital, cash and fee-related earnings generation £760bn Retail Workplace DC and related Asset M
Slide 13: Momentum in Workplace with c.£5bn net flows YTD
Momentum in Workplace with c.£5bn net flows YTD Strong run-rate growth from longstanding clients New scheme wins for future growth £3bn New scheme assets1 35 Number of schemes1 c.£800m Regular monthly contributions + Additional pipeline of 99% Scheme retention £3bn opportunities 1 Schemes won and co
Slide 14: Long-term shift of annual annuity flows to Retail
Long-term shift of annual annuity flows to Retail Shift in annual flows c.£60bn1 £56bn #1 UK annuity provider across PRT and Retail annuities £92bn total annuity asset portfolio (of which £83bn in UK) PRT #1 open market Retail annuity provider 93% of our FY24 Retail annuities sourced externally c.£2
Slide 15: Clear ambition for Retail
Clear ambition for Retail 4-6% operating profit CAGR (2024-2028)1 1 Reliable growth in earnings from Retail businesses c.£4bn store of future profit (2024)2 Growth in fee-based earnings £40-50bn Workplace net flows (2024-2028) 2 emerging particularly in Asset Management Triple Workplace combined pro
Slide 16: Retail: Supporting customers across their lifetimes
Retail: Supporting customers across their lifetimes Laura Mason, CEO, Retail 16
Slide 17: Key messages
Key messages • Differentiated Retail offering drawing on our scale and synergistic business model Market leading • High quality service for customers acquired through our broad distribution network businesses • At-scale businesses consistently winning in attractive markets • Major flows shaping Reta
Slide 18: Section 1
Section 1 • Differentiated Retail offering drawing on our scale and synergistic business model Market leading • High quality service for customers acquired through our broad distribution network businesses • At-scale businesses consistently winning in attractive markets • Major flows shaping Retail
Slide 19: Playing to our distinctive strengths in Retail
Playing to our distinctive strengths in Retail A B C D Trusted customer Extensive Group Scaled positions in service at scale distribution coverage synergies attractive markets 12.4m 24 #1 Top 3 UK customers1 UK partnerships UK Asset Manager Workplace DC Individual Annuities +54 c.60% #1 Lifetime Mor
Slide 20: Quality lifetime service to a scaled customer base
A Quality lifetime service to a scaled customer base First job 12.4m 20m+ Customers Interactions per year Having Buying a family a home +54pts 82.6 Net Promoter Customer Score Satisfaction Index1 Saving for the Retiring future Customer Service Team of the Year GOLD WINNER 2025 Supporting loved ones
Slide 21: Efficient multi-channel customer acquisition
B Efficient multi-channel customer acquisition L&G Relationships Workplace & Corporates Workplace DC Group Protection Intermediaries c.90% Annuities Partnerships Retail Protection Direct c.10% Lifetime Mortgages 21
Slide 22: Bringing together the strengths from across the Group
C Bringing together the strengths from across the Group My Retail Leadership Team Examples of Group-wide collaboration Coordination of our #1 UK DC manager capabilities Ali Crossley Paula Llewellyn MD Distribution CEO, DC & Workplace Distribution Asset Management Single Investments Asset Management
Slide 23: Strong positioning in attractive, growing UK markets
D Strong positioning in attractive, growing UK markets 1 Workplace Savings 2 Individual Annuities 3 Lifetime Mortgages 4 Protection 26% 18% 18% 24% £760bn £8bn £40bn £1bn AUM new premiums LTM portfolios new premiums #2 in Retail Protection #1 rank in UK DC #1 rank #3 rank #3 in Group Protection 5.2m
Slide 24: Workplace as core customer acquisition engine
1 Workplace as core customer acquisition engine Workplace Savings Individual Annuities Lifetime Mortgages Protection L&G UK DC AUM >12% CAGR Workplace DC net flows of £40bn+ since 2020, including c.£5bn Q3 2025 YTD £205bn #1 UK commercial Master gaqTrust (£39bn AUA) £113bn Double Workplace assets by
Slide 25: Annuities offer attractive long-duration returns
2 Annuities offer attractive long-duration returns Workplace Savings Individual Annuities Lifetime Mortgages Protection L&G Individual Annuities volumes1 24% CAGR #1 by open market sales £2.1bn Innovating with fully end-to-end digital applications £0.9bn Capture the c.£20bn opportunity by 2034 Joint
Slide 26: Lifetime mortgages for differentiated asset origination
3 Lifetime mortgages for differentiated asset origination Workplace Savings Individual Annuities Lifetime Mortgages Protection L&G Lifetime Mortgage portfolio 9% CAGR 3rd largest UK lifetime mortgage book £7.0bn £5.0bn History of product innovation with dynamic pricing capabilities Address £3.7trn h
Slide 27: Protection offers diversification and reliable growth
4 Protection offers diversification and reliable growth Workplace Savings Individual Annuities Lifetime Mortgages Protection L&G Gross Written Premiums 4% CAGR #2 in Retail Protection and #3 in Group Protection by new premiums £2.1bn £1.8bn Leaders in digital experience, Improving margins data and t
Slide 28: Section 2
Section 2 • Differentiated Retail offering drawing on our scale and synergistic business model Market leading • High quality service for customers acquired through our broad distribution network businesses • At-scale businesses consistently winning in attractive markets • Major flows shaping Retail
Slide 29: Revolution in UK pensions over next decade
Revolution in UK pensions over next decade c.2x growth in DC assets eclipsing UK DB >2x growth in Retail decumulation flows1 £1.5trn £100bn DB 80 Drawdown assets £0.8trn £44bn DC 36 20 Retail annuities 8 2024 2034 2024 2034 1 Broadridge (2025), excluding cash. 29
Slide 30: Why this is a pivotal moment for us
Why this is a pivotal moment for us Targeted support and tech Minimum default fund AUM Mansion House Accord advancements unlock driving consolidation for Private Markets Access customer action Largest UK Commercial Targeted support Private Markets Access Fund Master Trust (c.£39bn AUM) FCA pre-appli
Slide 31: Accelerating our leading UK DC & Retirement platform
Accelerating our leading UK DC & Retirement platform Accumulation At-retirement Decumulation Hybrid Engagement across customer lifetime Annuity Digital Guidance Workplace Pensions Drawdown Targeted Support Retail Savings Solutions1 Blended Income Solutions Advice Lifetime Mortgages 1 Includes Workpl
Slide 32: Attracting customers at scale through Workplace
Attracting customers at scale through Workplace L&G Workplace customers1 (m) + >50% of our book is mass market c.90% and mass affluent customers reaching retirement age 1.7m between now and 20342 5.2 4.2 growth in average pot size for >2x at-retirement age customers by 20342 2022 HY 2025 2028 2034 1
Slide 33: Increasing retention of assets at-retirement
Increasing retention of assets at-retirement At-retirement market flows1 2024 Outlook Established drawdown capability Drawdown 60% £5bn+ converted into drawdown since 2020 Incl. blended income solutions Customer #1 open market annuity provider at-retirement Annuities 13% options Growing conversion i
Slide 34: Maximising customer lifetime value
Maximising customer lifetime value Total customer Accumulation At-retirement Decumulation lifetime value L&G customer aged 45 Consolidation of Ruth Drawdown aged 65 after multiple jobs previous pots aged 55 (Mass Affluent) L&G customer aged 20 Retained in Workplace Annuity aged 65 and Frank (single
Slide 35: Significant upside over the next decade
Significant upside over the next decade Combined operating profit from Retail and related Asset Management earnings >15% CAGR Retail-originated Asset Management Accelerating growth +4-6% beyond 2028 Retail CAGR 2024 2024 2028 2028 2032 2034 35
Slide 36: Section 3
Section 3 • Differentiated Retail offering drawing on our scale and synergistic business model Market leading • High quality service for customers acquired through our broad distribution network businesses • At-scale businesses consistently winning in attractive markets • Major flows shaping Retail
Slide 37: Major strategic building blocks are in place
Major strategic building blocks are in place Accumulation At-retirement Decumulation Hybrid Engagement across customer lifetime Annuity Digital Guidance Drawdown Workplace Pensions Advice Lifetime Mortgages Retail Savings Solutions Targeted Support Blended Income Solutions Established capability New
Slide 38: Spotlight on four areas using technology and data
Spotlight on four areas using technology and data Accumulation At-retirement Decumulation Pot consolidation 1 Personalised customer Retiring engagement at scale First job 2 Estate Long-term care Planning Integrated hybrid model to increase retention 3 Flexible retirement Buying Having a Changing inc
Slide 39: Personalised customer engagement at scale
1 Personalised customer engagement at scale Our customer engagement engine… … delivering a tailored service … … via an omni-channel experience Customer engagement platform #1 + Personalised engagement Workplace Single customer view app + Real-time orchestration Segmentation and behavioural science +
Slide 40: Integrated hybrid model to increase retention
2 Integrated hybrid model to increase retention Pre- and at-retirement digital guidance journeys Digital c.12m Guidance Driving conversion into annuities (4x more likely) adults in the advice gap1 Submitted pre-application to FCA Targeted Support Supplement guidance at-retirement journey c.90% Advic
Slide 41: Flexible income solutions for long-term earnings
3 Flexible income solutions for long-term earnings c.£130bn demand for blended Retirement solutions over the next decade1 Flexible withdrawals Guaranteed income Introducing Flex and Fix 100% Drawdown To be replaced with 100% Annuities product screenshots Drawdown Annuity Drawdown converting to Dynam
Slide 42: Digitising customer service to improve efficiency
4 Digitising customer service to improve efficiency AI enabled customer service model in collaboration with Channels To date c.£85m Customers Intelligent Assistance Unified routing Colleagues Managers c.£130m cumulative operational operational efficiencies efficiencies since 2020 in the next 5 years
Slide 43: Summary of key messages
Summary of key messages • Differentiated Retail offering drawing on our scale and synergistic business model Market leading • High quality service for customers acquired through our broad distribution network businesses • At-scale businesses consistently winning in attractive markets • Major flows s
Slide 44: Financial outlook
Financial outlook Jeff Davies, Group CFO 44
Slide 45: Financial key messages
Financial key messages Retail earnings, capital and cash are high quality, predictable and diversified Attractive long-term growth with operating leverage as we scale Synergies create upside for both Group and Retail earnings 45
Slide 46: Mature businesses with long-term growth potential
Mature businesses with long-term growth potential Earnings quality Today Future Profits largely from mature businesses 4-6% profit growth 2024-2028 c.£4bn store of future profit 60-70% of 2028 earnings already secured Significant potential in Workplace Accelerating profit growth beyond 2028 Strong c
Slide 47: Profit growth accelerating in medium-term
Profit growth accelerating in medium-term Attractive Growth 4-6% CAGR Continued mature business growth + Increased contribution from Workplace Cost efficiencies + + Growing DC conversion into annuities Scaling Workplace + + Operating leverage Upside from annuity asset growth 2024 2028 2034 47
Slide 48: Scale in Workplace DC driving profit growth
Scale in Workplace DC driving profit growth Attractive Growth Retail Workplace DC and associated Asset Management operating profit1 5-7% p.a. £40-50bn Average combined revenue net flows2 margin of c.30bps today1 Cost income ratio to fall from c.75% to <50% and c.£60m 3x operating margin set to doubl
Slide 49: New business is growing the annuity portfolio
New business is growing the annuity portfolio Attractive Growth Retail Annuities near term asset portfolio growth1 Indicative asset growth of 6% p.a. driving … £18.4bn +10% (4)% Capacity for backbook optimisation + Increased Asset Management revenue Run-off p.a. from New business 2024 existing book
Slide 50: Retail drives future UK Annuities portfolio growth
Retail drives future UK Annuities portfolio growth Attractive Growth Indicative total UK Annuities portfolio growth1 Retail represents a larger proportion of our UK annuity assets over time 5-6% CAGR 2024 2044 Retail annuities 22% c.35% £83bn2 UK PRT 78% c.65% 2024 2034 2044 1 Retail Annuities: Indi
Slide 51: Stability in changing markets from our business mix
Stability in changing markets from our business mix Group synergies Diversification benefits from natural hedges within Retail Lower interest rates Higher interest rates v More attractive Lifetime Mortgages More attractive Annuities rates Higher Fixed Income AUM Greater stability of = earnings, capi
Slide 52: Retail as a source of Asset Management growth
Retail as a source of Asset Management growth Group synergies FY24 Retail assets… … growing at £94bn Workplace £40-50bn Workplace net flows (24-28) £18bn Retail annuities +c.6% p.a. annuities portfolio growth Share of cumulative Total Asset Management c.15% FY24 revenues >40% 2025-28 ANNR (£100-150m
Slide 53: Growing contribution to fee-based earnings
Growing contribution to fee-based earnings Group synergies Total Retail and related Asset Management operating profit 2024 2034 Fee-based earnings < 15% c.40% Insurance earnings > 85% c.60% 2024 2034 Insurance businesses Workplace Retail-related Asset Management profit 53
Slide 54: Closing remarks
Closing remarks António Simões, Group CEO 54
Slide 55: A growing, simpler, better-connected L&G
A growing, simpler, better-connected L&G Eric Adler Deep Dive in June 2025 Sharper Focus Asset Management = Sustainable Growth Institutional Retail Retirement Andrew Kail Laura Mason Enhanced Deep Dive in Returns Deep Dive December 2024 today 55
Slide 56: Key messages
Key messages • Differentiated Retail offering drawing on our scale and synergistic business model Market leading • High quality service for customers acquired through our broad distribution network businesses • At-scale businesses consistently winning in attractive markets • Major flows shaping Reta
Slide 57: Clear ambition for Retail
Clear ambition for Retail 4-6% operating profit CAGR (2024-2028)1 1 Reliable growth in earnings from Retail businesses c.£4bn store of future profit (2024)2 Growth in fee-based earnings £40-50bn Workplace net flows (2024-2028) 2 emerging particularly in Asset Management Triple Workplace combined pro
Slide 58: Q&A
Q&A António Simões, Group CEO Laura Mason, Retail CEO Jeff Davies, Group CFO