Legal & General Group Plc · LSE:LGEN
Legal & General — H1 2025 Earnings Presentation
35 slides from Legal & General's earnings presentation, Aug 6, 2025
Slide 1: 2025 Half Year Results
Legal & General 2025 Half Year Results
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
Confidential Agenda 1. H1 2025 Summary and Update António Simões, Group CEO António Simões 2. H1 2025 Financial Highlights Group CEO Jeff Davies, Group CFO 3. Closing Statements António Simões, Group CEO Jeff Davies Followed by Q&A Group CFO 3
Slide 4: H1 2025 Summary and Update
H1 2025 Summary and Update António Simões, Group CEO
Slide 5: Impressive financial performance in H1 2025
Confidential Impressive financial performance in H1 2025 10.94p £859m Growing earnings Core operating EPS1 up 9% Core operating profit1 up 6% H1 2024: 10.07p H1 2024: £809m £729m 217% Strong capital Operational Surplus Generation1 up 3% Solvency II coverage ratio2 H1 2024: £711m FY 2024: 232% 6.12p
Slide 6: A growing, simpler, better-connected L&G
Confidential A growing, simpler, better-connected L&G Eric Adler Deep Dive 17 June 2025 Sustainable Growth Asset Management = Sharper Focus Institutional Retail Retirement Andrew Kail Laura Mason Enhanced Deep Dive Deep Dive Returns 4 December 2024 23 October 2025 6
Slide 7: Momentum delivering our strategy
Confidential Momentum delivering our strategy • Institutional Retirement: £5.2bn of PRT volumes year to date; confidence in pipeline Sustainable • Asset Management: £15m ANNR; revenue margin at 9bps; £65bn Private Markets JD:AUM weak Growth • Retail: Workplace net flows of £4.0bn (+21% vs H1’24) and
Slide 8: Institutional Retirement: Strong volumes, low strain
Confidential Institutional Retirement: Strong volumes, low strain £5.2bn of PRT volumes YTD Positive outlook £1.7bn £42bn Active and visible pipeline3 £0.1bn1 £5.2bn c.1% £3.3bn 9 UK new business strain £1bn+ deals in pipeline3 H1 H2 YTD1,2 Total UK International 1 Excludes 20% of US PRT business no
Slide 9: Sustained growth in PRT market over time
Confidential Sustained growth in PRT market over time L&G UK PRT assets continue to grow for 20+ years… … and earnings growth extends beyond this 6-8% CAGR Lower / upper range £500bn+ of UK PRT market inflows from 2029-2043 of asset growth1 c.£64bn Increasing capacity for portfolio optimisation L&G
Slide 10: Why we win in the PRT market…
Confidential Why we win in the PRT market… 1. Scale and origination capabilities Benefits of our scale and whole L&G model creating value to share with clients in pricing 5. Client service 2. Brand, track record and purpose High quality service from our Clients trust us; they value our heritage in-h
Slide 11: Asset Management: Positive momentum
Confidential Asset Management: Positive momentum Financial highlights Strategic momentum Momentum ▪ UK DC revenue up 8% to £103m, surpassing UK DB revenue Annualised Net New £15m in growth ▪ Multi-sector Private Credit Solution for Admiral Insurance Group Revenue (ANNR) channels ▪ Multiple new clien
Slide 12: Asset Management: Closing strategic capability gaps
Confidential Asset Management: Closing strategic capability gaps Build Buy Partner Building new and existing Adding to UK capability to create Partnering to create public- strategies organically a Global Real Estate platform private hybrid products Active Fixed Income US Real Estate Climate Transiti
Slide 13: Strategic partnership accelerating execution
Confidential Strategic partnership accelerating execution Public-private hybrid Asset origination for our Asset Management products annuity portfolio (PRT and Retail) Blackstone’s Private Credit Invest up to 10% of origination and L&G’s Active our new annuity flows Fixed Income expertise Distributio
Slide 14: Retail: Maximising the opportunity in Workplace DC
Confidential Retail: Maximising the opportunity in Workplace DC Financial highlights Well positioned in a changing UK Pensions landscape Workplace DC net flows1 ▪ L&G Workplace DC AUA up 7% vs. FY 2024 to £101bn Scale and ▪ L&G Master Trust at £36bn – largest commercial master trust in the UK consol
Slide 15: Returning more to shareholders
Confidential Returning more to shareholders £5.1bn+ Returning > £5bn to shareholders £1bn from 2025-2027 £500m £3.6bn Transaction 2025 buyback on track for 2% DPS growth 90% complete1 end of year intended out to FY27 Dividends 2025 buyback Sale of US Ongoing Total capital protection buybacks returns
Slide 16: H1 2025 Financial Highlights
H1 2025 Financial Highlights Jeff Davies, Group CFO
Slide 17: Performance in H1 2025
Confidential Performance in H1 2025 Financial Highlights H1’25 H1’24 Core Operating Profit (£m)1 859 809 +6% Core Operating Earnings Per Share (p)1 10.94 10.07 +9% SII Operational Surplus Generation (£m)1 729 711 +3% SII Capital Coverage Ratio (%)2 217% 223% 1 Excludes non-retained US business. 2 H1
Slide 18: Institutional Retirement
Confidential Institutional Retirement Financial Highlights (£m)1 H1’25 H1’24 Predictable and reliable growth in operating profit: ▪ Operating profit up 11% to £618m. Institutional Retirement Operating Profit 618 557 ▪ CSM release has increased by 7%, reflecting profitable new Investment Variance (21
Slide 19: Strong volumes and low strain in Institutional Retirement
Confidential Strong volumes and low strain in Institutional Retirement Positive momentum in H1: £5.2bn New business ▪ New business completed of £3.4bn, with UK PRT making up the volumes YTD1 majority (£3.3bn) and written at a c.1% strain. ▪ We continue to utilise gilts-based investment strategies to
Slide 20: Asset Management
Confidential Asset Management Financial Highlights (£m) H1’25 H1’24 We continue to grow fee revenue despite lower average AUM: ▪ Revenue up 2% to £500m despite average AUM down 1% due to Asset management revenue 500 492 volatility in financial markets and a weaker USD. Operating Profit: Fee Earning
Slide 21: Cost discipline as we invest to grow in Asset Management
Confidential Cost discipline as we invest to grow in Asset Management +4% £377m 75% +1% Cost to Underlying cost growth +1% £359m income ratio due to disciplined cost control Investment spend + £13m during short term market volatility to drive higher revenues Discipline in underlying costs creates ca
Slide 22: Retail
Confidential Retail Financial Highlights (£m) H1’25 H1’24 Retail operating profit is up 3% to £237m: ▪ Release of our store of future profit continues to be a source of Retail Operating Profit 237 231 reliable profits. ▪ Increased back book optimisation in the annuities portfolio. Retail annuities s
Slide 23: Strong Solvency II Balance Sheet
Confidential Strong Solvency II Balance Sheet (14)% 12% (4)% 2025 outlook (7)% (2)% Meiji transaction on track: Coverage ratio 232% 211% 217% ✓ +£1.2bn capital generation3 ✓ SII Coverage Ratio +7ppts post £1bn buyback FY 2024 Final 2024 Share Operational New Other H1 20252 dividend buyback surplus b
Slide 24: Increasing headroom over DPS growth of 2%
Confidential Increasing headroom over DPS growth of 2% >3% Management actions of greater than £300m p.a., OSG1 £729m up 3% growth vs. FY 2024 sustainable for the medium term FY25 forecast growth in OSG per share of >5%, exceeding DPS growth of 2% >5% +5% Headroom increases post £1.2bn buyback2 +2% +
Slide 25: Closing Statements
Closing Statements António Simões, Group CEO
Slide 26: A growing, simpler, better-connected L&G
Confidential A growing, simpler, better-connected L&G Eric Adler Key focus for October Retail Investor Deep Dive Deep Dive 17 June 2025 1 Businesses in highly attractive, growing markets Asset Management 2 Clear proposition to address growing customer needs 3 Financial outlook driven by compounding
Slide 27: Strong performance with positive momentum for H2
Confidential Strong performance with positive momentum for H2 Active pipeline expected to transact over the coming months Institutional Retirement Increased capacity for back book optimisation Revenue uplift from positive ANNR in H1 Asset Management Momentum of client wins and new fund launches Grow
Slide 28: Appendix
Appendix Lec
Slide 29: Our Asset Portfolio
Le Our Asset Portfolio
Slide 30: Annuity assets: A well-diversified bond and DI portfolio
Confidential Annuity assets: A well-diversified bond and DI portfolio1,2 Annuity Bond Portfolio: £86.4bn Annuity DI portfolio: £28.2bn3, 29% of total assets HY 2025 AAA, 3% (£2.5bn) • Defensively positioned, high quality portfolio 33% Infrastructure • 71% A-rated or better. Only c.3.6% is BBB- AA, 3
Slide 31: We have a high quality, diversified investment grade book
Confidential We have a high quality, diversified investment grade book Bond portfolio by rating Bond portfolio by geography Bond portfolio by asset type Bond portfolio by sector £86.4bn £86.4bn £86.4bn £86.4bn AAA 3% UK 52% Traded credit 67% Sovereign-like assets 27% AA 38% USA 30% Direct investment
Slide 32: Our UK exposure is diversified
Confidential Our UK exposure is diversified Annuity Bond portfolio UK Domiciled bond portfolio UK domiciled Traded Credit by geography by asset type portfolio by sector £38.6bn1 £8.9bn £86.4bn UK Domiciled UK Traded Credit (excl. FTSE 100) UK 52% FTSE 100 exposure 10% Utilities 33% USA 30% Governmen
Slide 33: Direct property exposure in annuity portfolio is limited
Confidential Direct property exposure in annuity portfolio is limited Annuity Property Annuity property exposure comprises: • £2.6bn of RVNs. This is the present value estimate of the future vacant possession Residual Value Note (RVN) value of the property (i.e. the value at the end of the lease ter
Slide 34: Defensive traded credit BBB exposure
Confidential Defensive traded credit BBB exposure Annuity Portfolio backing UK Annuities: Top 10 traded credit BBB exposure Investment Value Ultimate Parent Sector Country of Risk (£m) 1 Kelda Holdings Ltd Utilities UK 239 2 Deutsche Telekom AG Communications & Technology USA, Germany 215 3 United U
Slide 35: Our Direct Investments are with high quality counterparties
Confidential Our Direct Investments are with high quality counterparties Annuity Portfolio: Top 15 Direct Investments1 by exposure Rental Income Counterparty Sector Year of Investment Note (£m) 1 UK Government Government 2011-2019 1,830 2 Student Accommodation Provider Infrastructure 2023 381 3 UK C
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