Legal & General Group Plc · LSE:LGEN
Legal & General — JP Morgan European Insurance Conference 2015
17 slides from Legal & General's conference presentation, 2015
Slide 1: Delivering consistent dividend growth for our shareholders
Legal & General Nigel Wilson Group Chief Executive JP Morgan European Insurance Conference 2015 Delivering consistent dividend growth for our shareholders 24% CAGR LEGAL & GENERAL GROUP PLC
Slide 2: Forward looking statements
Forward looking statements This document may contain certain forward-looking statements relating to Legal & General Group, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty
Slide 3: Lack of positive action means Secular Stagnation by default
Lack of positive action means Secular Stagnation by default LEGAL & GENERAL GROUP PLC •
Slide 4: In the UK a compelling case can be made to take following actions
In the UK a compelling case can be made to take following actions LEGAL & GENERAL GROUP PLC
Slide 5: Clear and focussed strategy
Clear and focussed strategy GROWTH DRIVERS AGEING • The world is getting older, people live longer and have not saved enough for retirement POPULATIONS • Over 60’s have c£1.3trn of housing equity, increasingly used to fill this savings gap • $10trn of defined benefit liabilities globally, with incre
Slide 6: Achievements to date
Achievements to date GROWTH DRIVERS 2015 ACHIEVEMENTS TO DATE AGEING • LGR assets up 19% to £45.6bn POPULATIONS • Workplace assets up 43% to £13bn • LDI assets of £304bn, up 24% GLOBALISATION OF • International assets of £126.4bn, up 92%* ASSET MARKETS • First US Index mandate win • Further mandate
Slide 7: Progressing the strategy
Progressing the strategy 2015 – 2019 • Doubling size of LGIMA assets • Direct investments to exceed £15bn • Establishing LGR’s international business • Grow UK GWP at twice UK GDP • Building market leading position in UK DC • Creating new business segment in housing and urban regeneration • Launchin
Slide 8: Consistent delivery: strong results
FY14 Consistent delivery: strong results 2014 2013 GROWTH % 44.2 34.4 28 708.5 611.6 16 Growth 124.2 1,784 113.4 1,701 10 5 5,703 2,879 98 1,101 1,042 6 1,104 1,002 10 Earnings 1,275 1,238 1,158 1,144 10 8 16.70 15.20 10 3.9 4.0 201 221 Capital 7.0 229 6.9 251 16.9 16.1 LEGAL & GENERAL GROUP PLC
Slide 9: Q1 2015 highlights
Q1 2015 highlights Q1 2015 Q1 2014 GROWTH % Operational cash generation (£m) 330 297 11 EARNINGS Net cash generation (£m) 326 301 8 Q1 2015 Q1 2014 GROWTH % Annuity assets (£bn) 45.6 38.3 19 LGIM total assets (£bn) 736.8 630.9 17 LGIM total international assets (£bn) 126.4 66.0 92 GROWTH Insurance p
Slide 10: Full year dividend up 21% to 11.25p
Full year dividend up 21% to 11.25p DIVIDEND DIVIDEND 24% 20% CAGR CAGR 9.30p 7.65p 6.40p 4.75p 2 2 NET CASH (£m) 760 846 865 1,002 1,104 DIVIDEND (£m) 279 375 452 550 668 DIVIDEND COVERAGE1 2.72 2.26 1.91 1.82 1.65 LEGAL & GENERAL GROUP PLC
Slide 11: De-cluttering the business
De-cluttering the business ACQUISITIONS DISPOSALS / CLOSURE CALA Homes: housebuilder LGII: Irish retail investment bond business Banner Homes: housebuilder Xperience: Estate agency business Lucida: bulk annuity assets LGV: venture capital business Cofunds: open architecture fund platform With-profit
Slide 12: Focussed businesses
Focussed businesses ASSET MANAGEMENT INSURANCE 2014 Operating Profit (£m)1 2014 Operating Profit (£m)1 Legal & General Investment Management 336 Legal & General Insurance 370 Legal & General Retirement 428 Legal & General Capital Legal & General America 203 56 TOTAL 967 DIRECT INVESTMENTS SAVINGS Ma
Slide 13: Further significant progress in 2014, however more to do in 2015
Further significant progress in 2014, however more to do in 2015 DIVISIONS 2014 OPERATIONAL 2015 GUIDANCE STATUS1 2015 KEY ACTIONS CASH £m £m • LGR 292 340 • • Insurance excl. GI 286 290 • • Savings2 127 135 • • LGA 46 50 • • LGC 162 170 • • LGIM1 275 • • GI 46 • Group debt costs (112) (116) Other c
Slide 14: Consistent growth in key metrics
Consistent growth in key metrics NET CASH GROWTH (£m) 9% EARNINGS PER SHARE (p) 13% CAGR 1 1 RETURN ON EQUITY GROWTH (%) DIVIDEND (p) 20% CAGR 1 1 LEGAL & GENERAL GROUP PLC
Slide 15: Long term direct investments
Long term direct investments £15bn Direct investment programme, with £6.3 billion invested to date We’ve already made multi-million investments into student accommodation over the last three years, funding high-quality developments, with long leases, backed by premium universities in first- class lo
Slide 16: Unaffordable Welfare, Beveridge 2.0 and “Generation Y”
Unaffordable Welfare, Beveridge 2.0 and “Generation Y” “Europe accounts for just over 7% of the world’s population, produces around 25% of global GDP and has to finance c.50% of global social spending... It’s obvious it will have to work very hard to maintain its prosperity and way of life” Angela M
Slide 17: It’s time for UK business and politicians to solve the UK’s problems creatively
It’s time for UK business and politicians to solve the UK’s problems creatively 1. Government and private sector must collaborate to tackle infrastructure and housing shortages 2. Business and government to invest to address productivity gap 3. Modernise welfare state based upon work and safety net
Legal & General Group — JP Morgan European Insurance Conference 2015 on 6ix