Legal & General Group Plc · LSE:LGEN
Legal & General — Berenberg Conference December 2018
16 slides from Legal & General's conference presentation, December 2018
Slide 1: Delivering Inclusive capitalism
Delivering Inclusive capitalism Sharing success with investors, customers and society LEGAL & GENERAL GROUP PLC | BERENBERG CONFERENCE | DECEMBER 2018
Slide 2: Forward looking statements
Forward looking statements This document may contain certain forward-looking statements relating to Legal & General, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty becau
Slide 3: Growth drivers
Growth drivers Ageing • • INVESTING demographics & • ANNUITIES Globalisation of • • asset markets • Creating real assets • • INVESTMENT • MANAGEMENT Welfare reforms • • INVESTING & INSURANCE Technological innovation • ANNUITIES • • Today’s capital • •
Slide 4: L&G's Strategic Purpose and business divisions
Legal & General • UK pension risk transfer market leadership Retirement: • Growing US business Institutional L&G’s Strategic INVESTING & Legal & General • Delivering Retirement Income: UK individual Purpose ANNUITIES Retirement: Retail annuities and lifetime mortgages Improve the lives Legal & Gener
Slide 5: Annuities Investing
Annuities Investing HY18 Annuity Assets £56.4bn £13.5bn Lifetime mortgages c.21% Direct investments 2.7 Private credit 1.8 Infrastructure 2.8 1.1 c.57% Credit assets Property Residual Notes 5.1 Real Estate Debt and Sale & leaseback c.19% Sovereign-like assets Liabilities Assets
Slide 6: Institutional new business update
Institutional new business update 2018 YTD1 H1 H2 TD LGRI Completed Transactions >£8.4bn £0.7bn c.£7.7bn UK PRT £7.7bn £0.5bn c.£7.2bn International PRT £0.4bn1 £0.2bn £0.2bn1 Longevity Insurance £0.3bn1 £0.0bn £0.3bn1 UK PRT Pipeline UK PRT Actively Quoting as at HY Results >£20bn UK PRT Transactio
Slide 7: Counterparty and sector investments
Year of Book value1 Counterparty Sector investment (£m) •
Slide 8: Investing
Investing £8.1bn £2.0bn £2.0bn 0.6 Future Cities £2.0bn 1.1 UK Housing 0.4 VC & SME £4.1bn H1 2018
Slide 9: Future Cities, UK Housing, VC & SME
Future Cities UK Housing VC & SME Urban Regeneration Build to Sell VC • Real estate developments in UK • CALA has increased units by 2.5x • Invested in 240 start-ups in the UK cities, e.g. Cardiff EBIT by 5x since L&G ownership • Accelerated Digital Ventures (ADV) • Newcastle Science Central creatin
Slide 10: HY18 AUM and Revenue by Product (FY17)
HY18 AUM: £985bn Real assets 25 International c.19% Europe Revenue by Product (FY17) 166 c.16% Gulf £805m c.4% Asia Solutions 474 c.61% US 625 UK DB Active Strategies 160 64 UK DC & 326 96 Internal Workplace Interest & Other Index 98 DC & Retail (UK) 31 UK Retail & Personal Investing Capability Clie
Slide 11: Insurance gross written premiums
£2,531m GWP £369m GWP US Term 973 Household 337 UK Individual 1,232 UK Group 326 17 ASU 15 Pet 2017 2017
Slide 12: Operating Profit and H2 2018 Growth Drivers
Operating Profit (£m) FY 2017 H1 2018 H1 2017 Var % H2 2018 Growth Drivers Legal & General • Actively quoting over £25bn UK PRT business, Retirement: 906 361 333 8 >£8bn UK PRT Transactions completed since HY Institutional • $25bn US PRT market opportunity Legal & General INVESTING & • LTM £600m H2
Slide 13: Grown Ups, Scale Ups, Start Ups
100% “GROWN UPS” LGRI LGRR LGC LGIM LGI GI Mature Savings Sale agreed 20% - 49% 100% “SCALE UPS” - CALA Homes - NTR (Energy) - BTR - ETF - Pemberton - Salary Finance - LGIMA - DC / Retail - ADV - Smartr365 - LGRA - Future Cities Sale agreed - India First “START UPS” 3% - 20% 100% - LGIM Asia - Smart
Slide 14: FinTech investments and digital tools
Accessible tools for a new generation Workplace communications of personal investors • Personalised videos replacing • 59% increase in conversion standard mailings Digital B2B mortgage broking • 100% increase in new customer • Increased engagement: 14% platform acquisition made changes • Reduces 10
Slide 15: Operating profit, earnings per share, dividend per share
Operating profit from divisions (£m) Earnings per share (p) Dividend per share (p) Consensus
Slide 16: Delivering Inclusive capitalism
Delivering Inclusive capitalism Sharing success with investors, customers and society LEGAL & GENERAL GROUP PLC | BERENBERG CONFERENCE | DECEMBER 2018
Legal & General Group — Berenberg Conference December 2018 on 6ix