Legal & General Group Plc · LSE:LGEN
Legal & General — Investor Day (2025)
62 slides from Legal & General's investor day presentation, 2025
Slide 1: Asset Management Deep Dive
Legal & General Asset Management 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. Asset Management Eric Adler, Asset Management 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 today Sharper Focus Asset Management = Sustainable Growth Institutional Retail Retirement Andrew Kail Laura Mason Enhanced Deep Dive in Deep Dive in Returns December 2024 H2 2025 5
Slide 6: Strong progress and momentum
Strong progress and momentum • A simpler business model with the creation of a single global asset manager Sharper • Disciplined capital allocation adding greater rigour to decision making Focus • Successful disposals of CALA and US Protection through the Meiji Yasuda partnership • Strong pipeline i
Slide 7: Sharper focus for L&G and Asset Management
Sharper focus for L&G and Asset Management Group actions … and specifically in Asset Management Simplification of L&G Creation of a single global asset manager Granular prioritisation exercise Clarity on strategy of investment strategies and channels Investments in Taurus (Oct 24) and Proprium (May
Slide 8: Asset Management as a core growth engine for L&G
Asset Management as a core growth engine for L&G Global Asset Management AUM Asset class: 200 2024-29 CAGR 184 175 Private #1 UK Asset Manager by AUM Markets: 11% 150 Solutions and + Global scale and distribution network 128 multi-asset: 6% Global AUM ($trn) 125 115 109 106 + Strong investment and a
Slide 9: Competitive advantage through our balance sheet …
Competitive advantage through our balance sheet … £98bn Balance sheet capital1 Significant Asset Management growing UK PRT growth + £50-65bn (2024-2028) permanent capital c.£2bn Retail Annuities (FY 2024) UK PRT deals are Asset 81% Management clients2 Institutional Retail Retirement Higher, reliable
Slide 10: … and through our leading DC position
… and through our leading DC position £183bn UK Defined Contribution AUM Leading Asset DC provider Management 26% Share of UK DC market £94bn Workplace DC AUA Reliable inflows via Workplace Workplace net flows target Institutional + £40-50bn Retail (2024-2028) Retirement Private markets Allocation t
Slide 11: Highly attractive earnings from Asset Management
Highly attractive earnings from Asset Management Asset Management share of earnings1 Capital-light fee-related earnings + Reliable, recurring revenues + Strong cash conversion of fee-related earnings 25% + Highly synergistic with the rest of Group + High Return on Equity = An increasingly diversifie
Slide 12: A clear execution plan for earnings growth
A clear execution plan for earnings growth Asset Management commitments What we will set out today £500-600m Significant untapped potential Operating Profit by 2028 with great assets and strengths £100-150m Clear direction as a single global asset manager Cumulative ANNR, 2025-2028 Disciplined execu
Slide 13: Asset Management: A strategic growth engine of L&G
Asset Management: A strategic growth engine of L&G Eric Adler, CEO, Asset Management 13
Slide 14: Key messages
Key messages • UK’s largest asset manager with a strong UK client base and international momentum Untapped • Inherent competitive advantages through synergistic business model Potential • High quality, relevant investment capabilities with excellent performance • A leading global investor, solving c
Slide 15: Section 1: Untapped Potential
Section 1 • UK’s largest asset manager with a strong UK client base and international momentum Untapped • Inherent competitive advantages through synergistic business model Potential • High quality, relevant investment capabilities with excellent performance • A leading global investor, solving comp
Slide 16: Well-positioned for an evolving market
Well-positioned for an evolving market Growing retirement Increasing number of Client need for holistic Continued fee Trends opportunity insurer and asset solutions from a compression across globally manager partnerships single manager the industry Strengths Established An expert in Competitively Le
Slide 17: A scaled asset manager and leader in UK pensions
A scaled asset manager and leader in UK pensions Largest UK Asset Access to Established in the UK in Manager1 with 44% £183bn £98bn 1970, we are a leading >£1.1trn UK DC AUM AUM managed Internationally Internal balance total AUM sheet asset manager with experience across key channels, capabilities >
Slide 18: Breadth of capabilities and client channels
Breadth of capabilities and client channels INVESTMENT CAPABILITIES Liability Driven & Active Fixed Private Index Multi-Asset Derivative Overlays Income Markets CLIENT CHANNELS Institutional Wholesale & Global Financial (DB, Insurance, DC Internal Official Institutions) Wealth Institutions We have t
Slide 19: Filling key gaps will unlock potential
Filling key gaps will unlock potential Strengths Gaps Leadership in the UK Scale internationally Relationships with clients across UK DB, DC and Wholesale across all channels Reliable, permanent capital Optimal alignment Synergistic business model from PRT & DC flows to amplify the pace and scale of
Slide 20: Strong UK footprint with room to grow internationally
Strong UK footprint with room to grow internationally Clients Americas UK Europe (ex-UK) APAC L&G £211bn £629bn £91bn £187bn AUM Market £53trn £5trn £17trn £13trn AUM Market 0.4% 11.6% 0.5% 1.4% share L&G AUM as at 31 December 2024; International AUM includes assets managed internationally on behalf
Slide 21: Expert in pensions with potential in other channels
Expert in pensions with potential in other channels Clients Pension Funds £845bn – of which UK Defined Benefit £374bn – of which UK Defined Contribution £183bn c.75% Other Institutional £99bn AUM in Pension Funds Insurance £97bn Wholesale (inc. ETF) £76bn £1,118bn L&G AUM as at 31 December 2024. AUM
Slide 22: Permanent capital kick-starts our flywheel
Permanent capital kick-starts our flywheel Synergies Institutional Annuities £74bn Asset Management Retail Annuities £18bn £94bn Workplace DC Shareholder Funds £5bn Institutional Retail Retirement c.50% of Asset Management £1.2bn Asset Management UK DC AUM £98bn Balance sheet capital L&G FY24. Pleas
Slide 23: Solutions mindset, with key building blocks in place
Solutions mindset, with key building blocks in place Investments A joined up, solutions-led distribution approach across asset classes Liability Driven & Active Fixed Private Index Multi-Asset Derivative Overlays Income1 Markets2 £517bn £302bn £167bn £94bn £57bn Traditional and alternative, such LDI
Slide 24: Strong long-term investment performance …
Strong long-term investment performance … Investments Public markets1 93% 71% All LDI, Index and Active Fixed Income Multi-Asset ETF portfolios + performing in line with tracking expectations Private markets 74bps 56bps Real Estate2 Private Credit3 (1) Percentage of portfolios outperforming key comp
Slide 25: … but financial performance needs to improve
… but financial performance needs to improve Financials £401m £967m £711m Fee-related Revenue Expenses £256m earnings 8bps 74% Balance £145m sheet returns Average fee Cost-Income Ratio FY24 Operating Profit 25
Slide 26: Section 2: Clear Direction
Section 2 • UK’s largest asset manager with a strong UK client base and international momentum Untapped • Inherent competitive advantages through synergistic business model Potential • High quality, relevant investment capabilities with excellent performance • A leading global investor, solving comp
Slide 27: A reminder of our financial ambitions by 2028
A reminder of our financial ambitions by 2028 Our targets from June 2024 Today: more clarity on how we will get there £500-600m • Growth in fee-related earnings drives improved financial performance Operating Profit by 2028 • Cost income ratio <70% by 2028 £100-150m • 8bps revenue margin today; we a
Slide 28: A clear vision to drive growth
A clear vision to drive growth Better leveraging 1 L&G Balance Sheet for growth A leading global investor, innovating 2 Investment capabilities Filling key gaps to solve client challenges using 3 Platform Scaling our solutions approach the power of L&G Accessing growth 4 Global Distribution channels
Slide 29: Leveraging the power of L&G to drive growth
1 Leveraging the power of L&G to drive growth Flexible pools of capital to drive growth £1.2bn Catalytic/incubation capital Dedicated Asset Management balance sheet for: Asset Management Seed commitments to catalyse new funding £5bn Seed and co-invest Incubation of new assets to support future S
Slide 30: Spotlight: Our partnership with Meiji Yasuda
1 Spotlight: Our partnership with Meiji Yasuda • Investment management agreements for Meiji Yasuda’s US Protection & US PRT businesses • ¥150bn (c.$1bn) ‘patient’ co-investment partnership in private markets to support Decade-long Asset Management both Meiji Yasuda and L&G’s ambitions partnership co
Slide 31: Critical additions to our investment capabilities
2 Critical additions to our investment capabilities Strategic options to close gaps Investment capability Focus areas to close gaps Build Buy Partner Greater weighting to systematic quant, Index more scale in ETFs Liability Driven & Increased scale in global strategies Derivative Overlays Scaled
Slide 32: Growing our Private Markets proposition to £85bn
2 Growing our Private Markets proposition to £85bn Multiple pathways to achieving our £85bn target £85bn+ Nascent Growth-ready Scaling £57bn UK Real Estate International Real Estate Public-Private hybrids UK IG Private Credit Renewable Infrastructure European Sub-IG Venture Capital Private Credit Di
Slide 33: Spotlight: Private Markets Access Fund
2 Spotlight: Private Markets Access Fund Private Markets Access Fund Illustrative portfolio breakdown £1bn AUM By asset class By region Private Equity Other Natural Resources North America Private Credit Europe (ex-UK) Private Infrastructure Private Real Estate UK Utilising our platform to provide U
Slide 34: A platform built for solutions at scale
3 A platform built for solutions at scale Seamless and bespoke design and delivery of investment solutions to clients Facilitate delivery of Commercialise our Expand our Outsourced innovative product trading capabilities CIO advisory function wrappers Expand integrated Drive continued Leadership in
Slide 35: Spotlight: Differentiating through Stewardship
3 Spotlight: Differentiating through Stewardship Long-term value creation for clients is at the centre of our approach 40+ years’ experience in working with companies and policymakers to raise overall market standards Resilient client demand One team Sharp focus £425 billion AUM Integrated Focus on
Slide 36: Increasing client depth and breadth internationally
4 Increasing client depth and breadth internationally Growing share of International AUM over time… … achieved through expansion in: Global Financial Institutions UK Global Wealth & Wholesale 50%+ 44% Global Insurers & Reinsurers 30% International 2020 2024 2028 2020 and 2024 based on historical L&G
Slide 37: Applying our Institutional quality to newer channels
4 Applying our Institutional quality to newer channels Newer channels Typical client solutions Key client wins in 2025 Large European Financial Institution Global Financial Solving complex problems for Institutions highly sophisticated global clients Money Market Funds Wholesale and High quality inv
Slide 38: Spotlight on Admiral: a new client collaboration
4 Spotlight on Admiral: a new client collaboration Complex client needs… …. Our solution Demand for Multi-Sector diversified credit Private Credit Solution1 + Innovative Investment Grade Credit insurance solutions + + Responsible investing with an aligned partner Sub-Investment Grade Credit (1) Subj
Slide 39: Section 3: Disciplined Execution
Section 3 • UK’s largest asset manager with a strong UK client base and international momentum Untapped • Inherent competitive advantages through synergistic business model Potential • High quality, relevant investment capabilities with excellent performance • A leading global investor, solving comp
Slide 40: Strong leadership team in place
Strong leadership team in place Appointed since June 2024 Chief Executive Officer, Asset Management Eric Adler Chief Client Chief Executive Chief Financial Chief Investment Officer Officer, America Officer Officer Sarah Aitken Jed Plafker Richard Lee Sonja Laud Chief Operating Chief Strategy & Chief
Slide 41: Disciplined prioritisation driving action
Disciplined prioritisation driving action Incubate Maximise Potential incremental profit Building capabilities for the future High conviction, firm-wide support for growth E.g. Public/Private Hybrids, Venture Capital, E.g. Specialist and Global Real Estate, Climate Transition Equity Target Date DC F
Slide 42: Maximising our excellence in Active Fixed Income
Maximise Maximising our excellence in Active Fixed Income Excellent investment Successful campaign Positive momentum for performance driving AUM growth future growth L&G Global Unconstrained Bond Plus Fund L&G Global Unconstrained Bond Plus Fund Investment Performance AUM (£m) Mar’25 £415m 8.5% 1Y 5
Slide 43: Running our portfolio efficiently
Run Running our portfolio efficiently Our “Run” portfolio Mature businesses operating at scale Optimise delivery to maximise efficiency and profitability For example: Broaden existing client relationships into new strategies Index LDI UK Diversified Real Estate Leverage existing capabilities to unde
Slide 44: Reviewing our approach to cost
Review Reviewing our approach to cost Disciplined BAU Execution releases capacity … … for strategic investment for growth • Reducing inefficiencies by leveraging AI and automation • Investment to maximise growth • Rationalising our organisational structure • Driving delivery of ANNR targets • Reduci
Slide 45: Incubating our Climate Transition strategy
Incubate Incubating our Climate Transition strategy Approach Transport Big oil to big energy Engaging with underperforming transition companies to unlock potential value Sustainable food Built Investment case environment Estimate that the first order direct economic value of engaging with underperfo
Slide 46: Key messages
Key messages • UK’s largest asset manager with a strong UK client base and international momentum Untapped • Inherent competitive advantages through synergistic business model Potential • High quality, relevant investment capabilities with excellent performance • A leading global investor, innovatin
Slide 47: Financial outlook
Financial outlook Jeff Davies, Group CFO
Slide 48: Financial key messages
Financial key messages Asset Management earnings are highly attractive for the Group Improved financial performance powered by revenue growth and cost discipline Capital-light earnings accelerated by targeted balance sheet deployment 48
Slide 49: Highly attractive Asset Management earnings
Highly attractive Asset Management earnings Attractive earnings Capital-light fee-related Reliable, recurring High Return on Equity earnings revenues Additional upside from High growth potential Strong cash conversion strategically aligned supported by Group of fee-related earnings balance sheet syn
Slide 50: Our Asset Management earnings profile today
Our Asset Management earnings profile today Improving performance FY 2024 Operating Profit: £401m Fee-related earnings Balance sheet returns £1.1trn £256m £1.2bn £145m AUM operating profit Balance sheet assets operating profit Valuation uplifts from minority Recurring earnings from a persistent clie
Slide 51: Clear path to improved financial performance
Clear path to improved financial performance Improving performance £500-600m £401m Fee-related earnings growth drives improved performance Investment for £100-150m growth enabled Cumulative by disciplined Cost Income Ratio falls as ANNR earnings grow BAU execution Balance sheet returns remain broadl
Slide 52: Annuities and DC underpin £100-150m ANNR target
Annuities and DC underpin £100-150m ANNR target Improving performance Inflows Outflows UK PRT + £50-65bn+ Retail annuities @ c.21 bps Annuity £25-30bn payments @ c.21 bps Workplace £40-50bn DC @ c.13-23 bps UK DB £80-120bn run-off @ c.3-6 bps e.g. International External e.g. Wholesale & Wealth e.g.
Slide 53: Balancing investment and cost efficiency
Balancing investment and cost efficiency Improving performance Low underlying cost growth (2024: +1%) Cost discipline creating capacity to grow Investment in growth Elimination of waste and inefficiency initiatives driving Ruthless prioritisation of spend delivery of ANNR targets Exiting ventures wi
Slide 54: Balance sheet investments increase fee earnings ...
Balance sheet investments increase fee earnings ... Capital-light earnings Balance sheet Benefits to fee earnings returns (increasing ANNR) Minority ownership of Fees on co-created products asset managers Valuation growth e.g. credit solutions for Admiral (e.g. Pemberton) + Fees on catalysed fundrai
Slide 55: Shift to capital-light, fee-related earnings over time
Shift to capital-light, fee-related earnings over time Capital-light earnings Asset Management operating profit mix Consistent forecast returns from 2024 36% 64% £401m balance sheet investments 9-15% 6-10% + Growing share of earnings 2028 25-30% 70-75% £500-600m from capital-light fees Balance sheet
Slide 56: A reminder of our financial ambitions by 2028
A reminder of our financial ambitions by 2028 Our targets from June 2024 Today: more clarity on how we will get there £500-600m • Growth in fee-related earnings drives improved financial performance Operating Profit by 2028 • Cost income ratio <70% by 2028 £100-150m • 8bps revenue margin today; we a
Slide 57: 2025 on track and confidence in our Group targets
2025 on track and confidence in our Group targets 6–9% CAGR Core Operating EPS (FY24-FY27) Operating Return on Equity of at least 20% (2025, 2026, 2027) Cumulative capital generation of £5-6bn (2025, 2026, 2027) 57
Slide 58: Closing remarks
Closing remarks António Simões, Group CEO
Slide 59: Key messages
Key messages • UK’s largest asset manager with a strong UK client base and international momentum Untapped • Inherent competitive advantages through synergistic business model Potential • High quality, relevant investment capabilities with excellent performance • A leading global investor, innovatin
Slide 60: Q&A
Q&A António Simões, Group CEO Eric Adler, Asset Management CEO Jeff Davies, Group CFO 60
Slide 61: Thank you
Lee Thank you
Slide 62: Appendix: 2024 underlying asset exposure
Appendix: 2024 underlying asset exposure FY24 Underlying AUM Exposure Derivatives 17% US Equities 45% Total Equity Cash 28% 1% Property 2% 35% Total Fixed Income £1.1trn Corporate AUM 17% Total Derivatives Bonds 15% UK Equities 4% 2% Total Property Other Equities Government Bonds 13% 1% Total Cash 2