Legal & General Group Plc · LSE:LGEN
Legal & General — H1 2025 Earnings Presentation
35 slides from Legal & General's earnings presentation, 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
Agenda 1. H1 2025 Summary and Update Antonio Simoes, Group CEO Antonio Simoes 2. H1 2025 Financial Highlights Group CEO Jeff Davies, Group CFO 3. Closing Statements Antonio Simoes, Group CEO Jeff Davies Followed by Q&A Group CFO
Slide 4: H1 2025 Summary and Update
HI 2025 Summary and Update Antonio Simoes, Group CEO
Slide 5: Impressive financial performance in H1 2025
Impressive financial performance in HI 2025 10.94p £859m Growing earnings ► Core operating EPS 1 up 9% H1 2024: 10.07p Core operating profit 1 up 6% H1 2024: £809m £729m 217 °/o Strong capital ► Operational Surplus Generation 1 up 3% H1 2024: £711 m Solvency 11 coverage ratio2 FY 2024: 232% 6.12p £5
Slide 6: A growing, simpler, better-connected L&G
A growing, simpler, better-connected L&G ® Eric Adler Deep Dive 17 June 2025 Sustainable Growth Asset - - ® Sharper Focus Retail Andrew Kail Deep Dive 4 December 2024 Laura Mason Deep Dive 23 October 2025 Do□ Enhanced Returns 6
Slide 7: Momentum delivering our strategy
Momentum delivering our strategy Do□ • Good execution momentum, firmly on plan to deliver our three-year targets Enhanced • Firmly on track to deliver full year core operating EPS growth of 6-9% Returns • Returning £5bn+ over three years through a combination of dividends and buybacks 7
Slide 8: Institutional Retirement: Strong volumes, low strain
Institutional Retirement: Strong volumes, low strain £5.2bn of PRT volumes YTD Positive outlook £42bn Active and visible pipeline3 C.1 Ofo 9 UK new business strain £1bn+ deals in pipeline3 H1 H2 YTD 1 •2 Total ■ International 1 Excludes 20% of US PRT business not retained. 2 Includes PRT won and exc
Slide 9: Sustained growth in PRT market over time
Sustained growth in PRT market over time L&G UK PRT assets continue to grow for 20+ years... ... and earnings growth extends beyond this � Lower I upper range £500bn+ of UK PRT market inflows from 2029-2043 � of asset growth 1 Increasing capacity for portfolio optimisation Further growth through Int
Slide 10: Why we win in the PRT market
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-house admini
Slide 11: Asset Management: Positive momentum
Asset Management: Positive momentum Financial highlights Strategic momentum • UK DC revenue up 8% to £103m, surpassing UK DB revenue Momentum Annualised Net New Revenue (ANNR) £15m in growth • Multi-sector Private Credit Solution for Admiral Insurance Group channels • Multiple new client wins in Asi
Slide 12: Asset Management: Closing strategic capability gaps
Asset Management: Closing strategic capability gaps Build 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 Transition Blackstone PRO
Slide 13: Strategic partnership accelerating execution
Strategic partnership accelerating execution 0 ([) 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 + Distribution thr
Slide 14: Retail: Maximising the opportunity in Workplace DC
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 consolidation • Wel
Slide 15: Returning more to shareholders
Returning more to shareholders £5.1bn+ Returning > £5bn to shareholders £1bn from 2025-2027 £500m £3.6bn r--------- r--------- I 1 1 1 2025 buyback : : Transaction 1 1 on track for 1 2% DPS growth : 90% complete1 1 1 I end of year : intended out to FY27 L--------- L--------- Dividends 2025 buyback S
Slide 16: H1 2025 Financial Highlights
HI 2025 Financial Highlights Jeff Davies, Group CFO
Slide 17: Performance in H1 2025
Performance in HI 2025 Financial Highlights Hl'25 Hl'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 2025 Sol
Slide 18: Institutional Retirement
Institutional Retirement Financial Highlights (£m) 1 Hl'25 Hl'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 (218) (266) bu
Slide 19: Strong volumes and low strain in Institutional Retirement
Strong volumes and low strain in Institutional Retirement Positive momentum in H1: £5.2bn • New business completed of £3.4bn, with UK PRT making up the New business volumes YTD 1 majority (£3.3bn) and written at a c.1 % strain. • We continue to utilise gilts-based investment strategies to minimise c
Slide 20: Asset Management
Asset Management Financial Highlights (£m) Hl'25 Hl'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 USO. Operating Profit: Fee Earning AUM 123 133
Slide 21: Cost discipline as we invest to grow in Asset Management
Cost discipline as we invest to grow in Asset Management +4% £377m +1% Cost to Underlying cost growth +1 % £359m income due to disciplined cost control ratio Investment spend + £13m during short term market volatility to drive higher revenues Discipline in underlying costs creates capacity to invest
Slide 22: Retail
Retail Financial Highlights (£m) Hl'25 Hl'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 sales 745 1,17
Slide 23: Strong Solvency II Balance Sheet
Strong Solvency II Balance Sheet (14)% 12% (4)% 2025 outlook (7)% (2)% Meiji transaction on track: Coverage ratio ✓ +£1.2bn capital generation3 ✓ SIi Coverage Ratio +7ppts post £1 bn buyback FY 2024 Final 2024 Share Operational New Other H1 20252 dividend buyback surplus business £bn generation1 str
Slide 24: Increasing headroom over DPS growth of 2%
Increasing headroom over DPS growth of 2% >3% Management actions of greater than £300m p.a., OSG 1 £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% Headroom increases post £ 1 .2bn buyback2 +2% +2% • OSG per share
Slide 25: Closing Statements
Closing Statements Antonio Simoes, Group CEO
Slide 26: A growing, simpler, better-connected L&G
A growing, simpler, better-connected L&G ll___ Eric Adler Key focus for October Retail Investor Deep Dive 0 Deep Dive 17 June 2025 s us ine ss e s in highly attractive, growing marke ts ll__ Asset _ _ _ _ _ _ _ _ _ _ Management cie ar propos it ionto addre ss growing c ustome r ne e ds II__ _ _ _ _
Slide 27: Strong performance with positive momentum for H2
Strong performance with positive momentum for H2 Active pipeline expected to transact over the coming months Institutional Retirement 0 Increased capacity for back book optimisation 0 Revenue uplift from positive ANNR in H1 Asset Management Momentum of client wins and new fund launches Growing Retai
Slide 28: Appendix
Slide 29: Our Asset Portfolio
Lee Our Asset Portfolio
Slide 30: Annuity assets: A well-diversified bond and DI portfolio
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 • Defensively positioned, high quality portfolio 33% Infrastructure • 71% A-rated or better. Only c.3.6% is BBB- • 27% of bonds in Sovereign-like
Slide 31: We have a high quality, diversified investment grade book
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 ■ AAA 3% ■ UK 52% Traded credit 67% Sovereign-like assets 27% ■ AA 38% ■ USA 30% Direct investments 26% ■ Infrastructur
Slide 32: Our UK exposure is diversified
Our UK exposure is diversified Annuity Bond portfolio UK Domiciled bond portfolio UK domiciled Traded Credit by geography by asset type portfolio by sector £38.6bn 1 £8.9bn £86.4bn UK Domiciled UK Traded Credit (excl. FTSE 100) ■ UK 52% ■ FTSE 100 exposure 10% ■ Utilities 33% ■ USA 30% ■ Government
Slide 33: Direct property exposure in annuity portfolio is limited
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 term) and repr
Slide 34: Defensive traded credit BBB exposure
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 Utilities
Slide 35: Our Direct Investments are with high quality counterparties
Our Direct Investments are with high quality counterparties Annuity Portfolio: Top 15 Direct lnvestments1 by exposure Rental Income Counterparty Sector Year of Investment Note (Em) 1 UK Government Government 2011-2019 1,830 2 Student Accommodation Provider Infrastructure 2023 381 3 UK Corporate Medi
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