Legal & General Group Plc · LSE:LGEN
Legal & General — FY2025 Earnings Presentation
68 slides from Legal & General's earnings presentation, Mar 11, 2026
Slide 1: Footer text runs here (Go Insert > Header & Footer to edit this text)
Footer text runs here (Go Insert > Header & Footer to edit this text) 1
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. 2025 Performance and Strategic Execution António Simões, Group CEO António Simões Group CEO 2. FY 2025 Financial Performance Andrew Kail, Group CFO 3. Q&A Andrew Kail Group CFO 3
Slide 4: Strong financial performance
Strong financial performance 20.93p £13.3bn Growing earnings Core operating EPS up 9% Store of future profit up 1% 2024: 19.20p 2024: £13.2bn £1,530m 210% Strong capital Operational Surplus Generation1 up 5% Solvency II coverage ratio2 2024: £1,461m 2024: 232% 21.79p £1.2bn Increased returns Full ye
Slide 5: Strategic delivery firmly on track
Strategic delivery firmly on track What we said… … What we’ve done Institutional Retirement: Global Pension Risk Transfer volumes of £11.8bn (FY24: £10.3bn) at low strain Sustainable Retail: Retail Annuities of £1.8bn and Workplace AUA up 21%, with net flows of £6.2bn1 Growth Asset Management:
Slide 6: Market leading businesses with strong delivery
Market leading businesses with strong delivery 2024 2025 £10.3bn £11.8bn Pension Risk Transfer volumes £4.6bn buy-in £1.6bn buy-in £1.1bn buy-in 2.0% 1.6% Pension Risk Transfer strain (UK strain: 1%) £149m £331m Asset optimisation (total Annuities P&L impact) £(5)m £34m Annualised Net New Revenue Pu
Slide 7: Commitment to greater clarity
Commitment to greater clarity Transparency Guidance Resilience Drivers of investment variance Coverage ratio operating Enhanced capital and asset revaluations range guidance of 160-190% generation disclosure Impact on future balance sheet returns Solvency II debt leverage trajectory Dividend sustain
Slide 8: Clear reasons to invest in L&G
Clear reasons to invest in L&G Leading businesses Synergistic Attractive, sustainable in growing markets business model capital returns 8
Slide 9: Leading businesses in growing sectors
Leading businesses in growing sectors c.2.5x Pension Risk Transfer assets > 2x Retail decumulation flows c.2x DC assets eclipsing DB £743bn £100bn £1.5trn DB Drawdown 80 assets £0.8trn £273bn £44bn DC 36 Retail 20 annuities 8 2024 2034 2024 2034 2024 2034 c.25% Market Share c.20% Market Share c.25%
Slide 10: Growing spread earnings from Annuities Portfolio
Growing spread earnings from Annuities Portfolio Annuities Portfolio Assets 6%+ CAGR UK’s largest Annuity provider: 2025 volumes of +11% £13.6bn (£11.8bn PRT + £1.8bn Retail Annuities) £93bn £83bn1 £18bn £17bn High quality, diversified credit portfolio, £75bn 99% Investment Grade £67bn Predictable e
Slide 11: Double digit growth in fee-related earnings
Double digit growth in fee-related earnings Fee-related earnings growth inflection point >20% CAGR Record year for Asset Management Annualised Net New Revenue of £34m £259m £252m Evolution of business mix driving margin expansion to 9.1bps, with Private Markets AUM of £75bn (+32%) Workplace AUA of £
Slide 12: Reinforcing business model positioned for growth
Reinforcing business model positioned for growth 80% of UK PRT transacted volumes >90% of Annuity assets Asset are Asset Management clients1 Management managed in-house 3x fees earned on Asset Management >95% of Workplace DC assets clients transacting PRT managed in-house Institutional Retail Retire
Slide 13: Attractive all-in yields for investors
Attractive all-in yields for investors 2025 2026 £5.3bn+ £1.2bn £4.2bn £4.2bn MYL transaction £1.2bn £500m £1.7bn £1.2bn All-in yield of 17%1 Dividends 2025 Capital Dividend Share Total capital Total capital Total capital paid out buyback returned (DPS growth buyback returns returns under returns to
Slide 14: Refreshed leadership team to drive execution
Refreshed leadership team to drive execution Andrew Kail Katie Worgan Chris Knight Group Chief Group Chief Group Chief Financial Officer Operating Officer Risk Officer 1 Gareth Mee Emma Holden Maria Alvarez-Scott CEO, Institutional Group Chief Group General Counsel Retirement People Officer & Compan
Slide 15: Financial Performance
Financial Performance Andrew Kail, Group CFO
Slide 16: Part I: What we delivered in 2025
Part I: What we delivered in 2025
Slide 17: FY25 Group Financial headlines
FY25 Group Financial headlines FY24 FY25 Core Operating Profit (£m) £1,534m £1,623m +6% Core Operating Earnings Per Share (p) 19.20p 20.93p +9% Solvency II Operational Surplus Generation1 (£m) £1,461m £1,530m +5% Solvency II OSG per share1 (p) 24.82p 26.78p +8% Solvency II Capital Coverage Ratio2 23
Slide 18: IFRS performance at a glance
IFRS performance at a glance FY24 FY25 Institutional Retirement £1,097m £1,168m +6% Asset Management £401m £402m – Retail £430m £447m +4% Group expenses and debt costs £(394)m £(394)m – Core Operating Profit £1,534m £1,623m +6% Total Operating Profit £1,711m £1,756m +3% Investment Variance £(1,196)m
Slide 19: Institutional Retirement
Institutional Retirement Financial Highlights (£m)1 20242 2025 Change (%) Key takeaways CSM Release 643 667 4% RA Release 140 132 (6)% Expected Investment Margin 479 548 14% Steady growth from release of CSM o/w Asset Optimisation 116 258 Expenses and other variances1 (165) (179) (8)% Core Operating
Slide 20: Strong execution in 2025
Strong execution in 2025 2025 execution1 Global leader in PRT 2026 UK outlook £11.8bn £10.4bn £1.4bn c.£50bn UK PRT International PRT £10.3bn projected market volumes (2024: £8.4bn) (2024: £1.9bn) 10 transactions over £1bn 1.6% 6.5% New business strain IFRS Margin £17bn (2024: 2.0%) (2024: 7.2%) act
Slide 21: Asset Management
Asset Management Financial Highlights (£m) 2024 2025 Change (%) Key takeaways Fee Revenue 996 1,038 4% Expenses (740) (780) 5% Fee Earnings 256 258 1% Fee-related earnings moving in the right direction Balance Sheet Earnings 145 144 (1)% Core Operating Profit 401 402 - Investment Variance (161) (236
Slide 22: Inflection point for Asset Management growth
Inflection point for Asset Management growth AUM mix has evolved over time as 2025 cost actions and ANNR of £34m provide UK Defined Benefit runs off tailwinds for declining cost-income ratio 80% 25.0% 75% 75% 74% 75% 20.0% 73% 72% New channel growth: 15.0% 70% 10bps+ fee margin Indicative only 10.0%
Slide 23: Retail
Retail Financial Highlights (£m) 20243 2025 Change (%) Key takeaways CSM Release 371 396 7% RA Release 77 79 3% Expected Investment Margin 127 141 11% Growing release from CSM o/w Asset Optimisation 32 73 Expenses and other variances1 (118) (123) (4)% Workplace administration2 (27) (46) Growing asse
Slide 24: Strong growth story: Workplace fee-related earnings
Strong growth story: Workplace fee-related earnings Workplace operating profit (£m) >15% CAGR £1bn monthly contributions by 2027 from our 5.8m members (£114bn AUA) 3x Proposition developments attracting new schemes and supporting >99% client retention rate Investment spend of c.£30m p.a. on average
Slide 25: Solvency II: 2025 movements
Solvency II: 2025 movements 26% (14)% 13.2 6.9 (18)% 7% 232% (8)% 28% (16)% temporary 224% restriction (10)% (5)% (3)% (2)% 6.3 203% 210% FY24 2025 FY24 OSG New Dividends Other M&A Temporary FY25 MYL £1bn Temporary Pro-forma FY25 buyback: post Business paid variances eligibility transaction Share el
Slide 26: 'On track' to deliver against our targets
‘On track’ to deliver against our targets Tracking against CME targets and ambitions Core Operating EPS CAGR1 (FY24-27) 6-9% ON TRACK Group Operating Return on Equity (2025, 2026, 2027) >20% AHEAD Cumulative capital generation2 (2025, 2026, 2027) £5-6bn ON TRACK UK PRT (2024-2028) £50-65bn ON TRACK
Slide 27: Part II: Foundations for future growth
Part II: Foundations for future growth
Slide 28: Commitment to greater clarity
Commitment to greater clarity Transparency Guidance Resilience Drivers of investment variance Coverage ratio operating Enhanced capital and asset revaluations range guidance of 160-190% generation disclosure Impact on future balance sheet returns Solvency II debt leverage trajectory Dividend sustain
Slide 29: Commitment to greater clarity
Commitment to greater clarity Transparency Guidance Resilience Drivers of investment variance Coverage ratio operating Enhanced capital and asset revaluations range guidance of 160-190% generation disclosure Impact on future balance sheet returns Solvency II debt leverage trajectory Dividend sustain
Slide 30: Drivers of Investment Variance
Drivers of Investment Variance Insurance Business (£m) FY23 FY24 FY25 Net positive for long-term value with Modelling & assumption changes1 (256) (214) (285) £1.2bn added to store of future profit1 Market impacts on Assets and Liabilities (343) (362) 105 Annuity portfolio focuses on strong cash flow
Slide 31: Reducing downside risk on shareholder assets
Reducing downside risk on shareholder assets Outlook £6.5bn £0.8bn Corporate £5.4bn Investments • Assets will be materially sold down by end of 2027 at current valuations Unit £1.2bn £0.5bn Transferred into third party funds: £1.1bn £(204)m Asset • Balance Sheet Investments operating profit of £80-1
Slide 32: Commitment to greater clarity
Commitment to greater clarity Transparency Guidance Resilience Drivers of investment variance Coverage ratio operating Enhanced capital and asset revaluations range guidance of 160-190% generation disclosure Impact on future balance sheet returns Solvency II debt leverage trajectory Dividend sustain
Slide 33: 64% of 2025 earnings from store of future profit release
64% of 2025 earnings from store of future profit release Analysis of change in store of future profit Reflects 64% of 2025 earnings1 £213m £14,604m £(1,079)m £592m CSM up 2% YoY £573m £60m £(211)m £13,314m £13,166m CSM, RA and asset optimisation are key recurring sources of profit Source of future p
Slide 34: Significant lifetime value for Annuities
Significant lifetime value for Annuities IFRS P&L from in year Significant opportunity within £193m £331m >£300m p.a. asset optimisation current market environment Split of assets backing annuity portfolio 40% Rotation across credit ratings, Traded currencies, and sectors 55% Credit 25% Sovereigns 1
Slide 35: Well capitalised to invest in future growth
Well capitalised to invest in future growth Solvency II coverage ratio above medium-term range Solvency ratio impact2 (%) +100bps 11ppts Interest Rates 7% temporary restriction -100bps -14ppts 232% 210% 190% +100bps 10ppts Credit Spreads Operating -100bps -13ppts range 160% Sub IG – Credit spreads +
Slide 36: Solvency II debt leverage
Solvency II debt leverage SII Debt Leverage Illustrative leverage evolution over plan period Rating agency ratings & pro-forma1 debt leverage ratios pro- forma1,4 33% £4.7bn Fair Value of Debt2 S&P 29% A 32% £14.3bn SII Own Funds3 Moody’s 21% A2 33% SII Debt Leverage Fitch 26% A+ FY 2025 Sale of US
Slide 37: Commitment to greater clarity
Commitment to greater clarity Transparency Guidance Resilience Drivers of investment variance Coverage ratio operating Enhanced capital and asset revaluations range guidance of 160-190% generation disclosure Impact on future balance sheet returns Solvency II debt leverage trajectory Dividend sustain
Slide 38: Underlying OSG is flat in 2025, but set for growth
Underlying OSG is flat in 2025, but set for growth Management Actions (excluding Asset Optimisation) 203 238 2024 2025 CAGR > £1.4bn Underlying OSG1,2 £1,199m £1,202m Flat underlying OSG OSG per share is reflects reduction in growing surplus assets Institutional +4% 913 889 Retirement +10% Retail 29
Slide 39: Solvency II capital generation headroom increases
Solvency II capital generation headroom increases Solvency II OSG Dividend per share per share >5% p.a. > 2% p.a. Solvency II OSG in 2025 (£1.5bn) comfortably covers dividend (£1.2bn) +8% Payout ratios are heavily influenced by the +2% 26.78p capital deployed on writing Annuities 24.82p 21.36p 21.79
Slide 40: Positive momentum for our next phase
Positive momentum for our next phase Strong financial Greater clarity Positioned to deliver results in 2025 for investors future growth 40
Slide 41: Closing Statement
Closing Statement António Simões, Group CEO
Slide 42: Positive momentum for 2026
Positive momentum for 2026 Institutional Retirement Asset Management Retail Attractive pipeline ready to Revenue uplift from £34m Growing Retail transact over next 12 months positive ANNR in 2025 Annuities volumes Sustainable annuity portfolio asset Momentum of client wins, Compounding Workplace gro
Slide 43: Compelling future focused investment case
Compelling future focused investment case Leading businesses • Leading businesses with significant market tailwinds and sharpened competitive advantages in growing markets • Asset Management repositioned; growing in high-conviction markets with cost discipline Synergistic • Synergistic model, drivin
Slide 44: Q&A
Q&A António Simões, Group CEO Andrew Kail, Group CFO Laura Mason, CEO Retail Eric Adler, CEO Asset Management Gareth Mee, CEO Institutional Retirement Andy Sinclair, Chief Strategy and IR Officer
Slide 45: Thank you
Thank you Half-year results: 5th August 2026
Slide 46: Appendix
Appendix ih
Slide 47: Key metrics: Group
Key metrics: Group Core Operating Earnings per Share (p) Operating Return on Equity (%) 54.4% 20.93p 19.04p 19.20p 34.8% 26.6% Not disclosed Not disclosed 2022 2023 2024 2025 2022 2023 2024 2025 Operational Surplus Generation1 (£) Core Operating Profit (£) £1,805m £1,821m £1,534m £1,623m £1,461m £1,
Slide 48: Key metrics: Institutional Retirement
Key metrics: Institutional Retirement UK PRT volumes (£) International PRT volumes (£)1 £12.0bn £10.4bn £8.4bn £7.3bn £2.2bn £1.9bn £1.7bn £1.4bn 2022 2023 2024 2025 2022 2023 2024 2025 Total PRT strain (%) Institutional Retirement Operating Profit (£)2 £1,168m £1,097m £1,028m £807m 2.0% 1.6% Not di
Slide 49: Key metrics: Asset Management
Key metrics: Asset Management Annualised Net New Revenue (£) Private Markets Assets under Management (£) 75 £34m 57 50 Not disclosed £(5)m Not disclosed 2022 2023 2024 2025 2022 2023 2024 2025 Asset Management Fee-Related Earnings (£) Cost-Income Ratio (%)1 74% 75% 268 256 258 72% 65% Not disclosed
Slide 50: Key metrics: Retail
Key metrics: Retail Workplace DC Net Flows (£) Retail Operating Profit (£)1 £7.3bn £6.3bn £6.0bn £6.2bn £449m £430m £447m £415m 2022 2023 2024 2025 2022 2023 2024 2025 Individual Annuities single premium (£) Retail and Group Protection gross premiums (£) £2.1bn £2.1bn £2.1bn £1.9bn £2.0bn £1.8bn £1.
Slide 51: Our ambitions, formal targets and guidance
Our ambitions, formal targets and guidance Formal targets Additional guidance Core Operating EPS CAGR1 (FY24-2027) 6-9% £5bn+ in dividend and share buybacks over 2025-2027 Group Operating Return on Equity (2025, 2026, 2027) >20% 14% Capital and cash allocation investment return hurdle OSG management
Slide 52: Earning, Store of future profit and Capital Generation
Earning, Store of future profit and Capital Generation
Slide 53: OSG by business – Own Funds and SCR
OSG by business – Own Funds and SCR OSG from continuing businesses1 FY 2024 FY 2025 Own Funds SCR Surplus Own Funds SCR Surplus Institutional Retirement 898 15 913 821 69 889 Of which asset optimisation 152 (42) 110 144 (6) 138 Retail 282 15 297 254 33 287 Of which asset optimisation 38 (10) 28 36 (
Slide 54: Our Annuity Portfolio
Lee Our Annuity Portfolio
Slide 55: Concerns on credit risk exposure overblown
Concerns on credit risk exposure overblown Investor Concerns on Credit What it means for L&G Spread widening We can generate increased earnings when spreads widen - upside potential We actively monitor and manage the portfolio within our risk Downgrades limits and to manage the capital position of t
Slide 56: High-quality, well managed, diversified annuity portfolio
High-quality, well managed, diversified annuity portfolio Total global portfolio Total bond portfolio: £85.5bn² Traded credit Cash & £38.6bn Other Property- Rating Geography Sector related 4% Sovereign-like assets 11% Consumer 38% services & goods 24% £101bn1 Utilities Infrastructure Sovereign £24.7
Slide 57: Traded credit: international/defensive/counter-cyclical
Traded credit: international/defensive/counter-cyclical Total global portfolio Traded credit Traded credit portfolio: £38.6bn £38.6bn Rating Geography Sector 4% Sovereign-like assets 11% Consumer 38% services & goods £101bn1 24% Utilities Infrastructure 22% AAA 6% UK 33% Consumer 18% AA 11% USA 49%
Slide 58: Sovereign portfolio
Sovereign portfolio Total global portfolio Sovereign portfolio: £24.7bn Rating Geography 4% Sovereign-like assets 11% Consumer 38% services & goods £101bn1 24% Utilities Infrastructure Sovereign 22% AAA 1% UK 78% £24.7bn AA 94% USA 17% A 4% Europe 2% BBB 1% RoW 3% BB or below 0% 1 Annuity Assets of
Slide 59: IG credit rarely defaults and spreads far exceed default rates
IG credit rarely defaults and spreads far exceed default rates 600 50 45 S&P Market Default Rates (bps) 500 40 IG Corporate Spreads (bps) 35 400 30 300 25 20 200 15 10 100 5 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Year IG corporate spre
Slide 60: Defensive traded credit BBB exposure
Defensive traded credit BBB exposure Annuity Portfolio backing Global Annuities: Top 10 traded credit BBB exposure Ultimate Parent Sector Country of Risk Investment Value (£m) 1 Kelda Holdings Ltd Utilities UK 282 2 CK Hutchison Holdings Ltd Utilities UK 219 3 United Utilities Group PLC Utilities UK
Slide 61: Private Credit: our portfolio is high quality
Private Credit: our portfolio is high quality Total global portfolio Private credit portfolio: £22.2bn Rating Geography Sector 4% Sovereign-like assets 11% Consumer 38% services & goods £101bn1 24% Utilities Infrastructure 22% AAA 2% UK 47% Infra 43% AA 6% USA 35% Utilities 14% A 44% Europe 12% Real
Slide 62: Private Credit exposures are not inherently more risky
Private Credit exposures are not inherently more risky Investor Concerns on Credit L&G’s Private Credit Portfolio Systemic Risk Investment grade with carefully managed risk limits The vast majority of our exposure is to private placement type debt, predominantly in UK, Exposed to US direct lending a
Slide 63: Our Direct Investments are with high quality counterparties
Our Direct Investments are with high quality counterparties Annuity Portfolio backing Global Annuities: Top 15 Direct Investments by exposure Country of Rental Income Note Counterparty Sector Year of Investment Risk (£m) 1 UK Government Government UK 2011-2025 1,921 2 Student Accommodation Provider
Slide 64: Direct property exposure in annuity portfolio is limited
Direct property exposure in annuity portfolio is limited 29% Annuity property exposure of £12.1bn 48% RIN comprises: RVN Asset LTM • £2.8bn of RVNs. This is the present value Property-related: estimate of the future vacant possession value of £12.1bn 23% the property (i.e. the value at the end of th
Slide 65: Asset Management Asset Mix
L&G gement Asset Mana 1x Asset M
Slide 66: 2025 underlying asset exposure by asset class
2025 underlying asset exposure by asset class Derivates 14% Cash US Equities 2% 27% 47% Total Equity Property 1% 35% Total Fixed Income Corporate Bonds £1.2trn 15% 14% Total Derivatives AUM UK Equities 4% 1% Total Real Estate Government Other Equities 2% Total Cash 16% Bonds 20% Note: L&G internal d
Slide 67: Asset Management Balance Sheet Investments
Asset Management Balance Sheet Investments FY24 FY25 Real Estate £510m £622m Private Credit1 £264m £298m Infrastructure £276m £102m Venture Capital £186m £77m Total £1,236m £1,101m 1 Includes 40% stake in Pemberton. 67
Slide 68: Underlying Assets Under Management by Solution
Underlying Assets Under Management by Solution Assets under Management (AUM)1 +5% £1,197bn £1,172bn £1,135bn Private Markets Active Solutions & Multi Asset Index 2023 2024 2025 1 Includes joint ventures, associates and other. 68