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Legal & General Group Plc Annual report and accounts 2025
Together, investing
Inside this report
Strategic report
How we bring our vision for a growing, simpler and better-connected L&G
for the long term
1 At a glance (Financial
measures)
2 Chair's statement
4 Our strategy and business model
6 Chief Executive Officer's Q&A
9 Our purpose, strategy and behaviours in action
12 Chief Financial Officer's review
14 Key performance indicators (KPIs)
15 Tax review
Governance
16 Business review
24 Sustainability
28 Non-financial and
sustainability information statement
34 People
36 Our stakeholders
38 Managing risk
42 Principal risks and uncertainties
47 Group Board viability statement
How we grow our business responsibly
At L&G, we've always believed that progress is a collective effort achieved when we combine long-term vision
50 Letter from the Chair
52 Board of directors
54 Group Management Committee
55 Governance report
62 Employee engagement
64 Section 172(1) statement and stakeholder engagement
69 Audit Committee report
75 Enterprise Transformation Committee report
77 Nominations and Corporate Governance Committee report
82 Risk Committee report
84 Directors' report on remuneration (DRR)
88 DRR quick read summary
90 Remuneration policy
96 Annual report on remuneration
with the power of partnership.
Over the past year, we've brought greater connection across our businesses, creating a more joined-up organisation that is focused on delivering consistent, sustainable value. We've
Financial statements
Our financial statements for the year ended 31 December 2025
continued to invest in areas where our expertise can make the biggest difference - from securing pensions to financing clean energy and affordable housing.
What unites it all is our purpose: 'Investing for the long term. Our futures depend on it.' Together we can build resilience, opportunity and shared prosperity. Our strength lies in the people, partners and communities who work alongside us
to make that purpose real.
António Simões
Group Chief Executive Officer
116 Group consolidated financial statements
117 Independent auditor's report
131 Primary statements and performance
Other information
242 Directors' report and additional statutory and regulatory information
246 Shareholder information
161 Balance sheet
management
215 Additional financial information
235 Company financial statements
248 Alternative performance measures
251 Glossary
Our reporting suite
Climate and nature report
Social impact report
Tax supplement
Risk management supplement
Discover more online group.legalandgeneral.com/Annualreport2025
Annual report quick read
A summary of the Annual report and accounts, highlighting strategy, performance and how the Group is structured, is available online.
Discover more online group.legalandgeneral.com/Annualreportsummary2025
At a glance
A year of significant strategic progress and strong financial performance, whilst investing for the long term.
Strategic report
Financial measures Non-financial measures
Profit before tax
£824m
(2024: £448m)1
Profit before tax from continuing operations comprises all items
of income and expense recognised in profit or loss (excluding corporate income taxes).
Core operating earnings per share
Adjusted operating profit
£1,756m
(2024: £1,711m)
Adjusted operating profit measures the pre-tax result excluding the impact of investment volatility, economic assumption changes caused by changes in market conditions or expectations and exceptional items. The measure enhances the understanding of
the Group's operating performance over time by separately identifying non-operating items.
Store of future profit
Investment portfolio economic GHG emission intensity2
51 tCO2e/£m
(2024: 50 tCO2e/£m)
This is made up of our ownership share of the emissions related to the assets we invest in within the Group proprietary asset portfolio. It includes bonds, equities and investment property, but excludes cash, derivatives and any assets already covered in our operational footprint. It is measured per unit of investment.
Operational footprint (scope 1 and 2 (location))2
19,921 tCO2e
(2024: 27,418 tCO2e)
Measures the greenhouse gases (GHG) associated with our direct operations. Scope 1 emissions are direct GHG emissions occurring from sources owned or controlled by the Company. Scope 2 emissions are indirect GHG emissions from consumption of purchased electricity, heat or steam.
20.93p
(2024: 19.20p)1
Earnings per share (EPS) measures the profitability and strength of a company over time. Core operating EPS is calculated as core operating profit less coupon payable in respect of restricted Tier 1 convertible notes, all after allocated tax at the standard UK corporate tax rate, divided by the weighted average number of shares outstanding
during the year.
Solvency II coverage ratio
203%
(2024: 232%)
Solvency II coverage ratio, which shows own funds on a regulatory basis divided by the solvency capital requirement, is one of the indicators of the Group's balance sheet strength and aligns to management's approach of dynamically managing
the Group's capital position.
£13.3bn
(2024: £13.2bn)1
Store of future profit refers to the gross of tax combination of established contractual service margin (CSM), and risk adjustment (RA) (net of reinsurance) which releases reliably into profit over time.
Solvency II operational surplus generation
£1,530m
(2024: £1,461m)1,3
Solvency II operational surplus generation is the expected surplus generated from the assets and liabilities in-force at the start of the year. It is based on assumed real world returns and best estimate non-market assumptions and it includes the impact of management
actions to the extent that, at the start of the year, these were reasonably expected to be implemented over the year.
Performance measures and remuneration
The performance measures used for the purpose of determining variable elements of directors' remuneration are aligned to the Group's key performance indicators (KPIs). These are indicated with the icon:
For more details, refer to pages 90 to 91 of the remuneration policy.
Alternative performance measures (APMs)
The Group uses certain APMs to help explain its business performance, indicated with the icon:
Further information on APMs, including a reconciliation to the financial statements (where possible), can be found on page 248.
Full definitions of the financial metrics above are included in the glossary on page 251. A reconciliation from adjusted
operating profit to profit before tax can be found on page 153 of the financial statements.
Comparative information has been re-presented to reflect the results of the US protection and US pension risk transfer (PRT) businesses as discontinued
operations. See Note 1 of the financial statements on page 136 for further information.
Our total scope 1, scope 2 (location) and scope 3 category 15 emissions have been subject to independent limited assurance by Deloitte. The basis
of preparation (or reporting criteria) for our Group carbon footprint and Deloitte's limited assurance report is available in our 2025 Climate and nature report at group.legalandgeneral.com/Climatereport2025.
The methodology for calculating Solvency II operational surplus generation
has been updated such that TMTP amortisation is now reflected as an operating variance. Comparative information has been re-presented accordingly. See further information on APMs on page 250.
Legal & General Group Plc Annual report and accounts 2025 1
Chair's statement
Delivering our strategy
Strategic report
Full year dividend (p)
21.36 21.79
Final dividend to be paid on 4 June 2026
15.67p
19.37
18.45
20.34
(2024: 15.36p)
We have made strong progress to transform our business in support of our strategy.
Sir John Kingman
Chair
2021 2022 2023 2024 2025
Legal & General Group Plc Annual report and accounts 2025 2
Introduction
L&G's purpose - 'Investing for the long term. Our futures depend on it' - shapes our strategy and the way we do business,
reflecting our long-term mindset, the lasting value we create, and our responsiveness to clients' and customers' needs.
In 2025, we made strong progress to transform our business in support of our strategy, underpinning the positive impact of the Company now, and in decades ahead.
Delivering our strategy
In 2024, we shared our vision of a growing, simpler and better-connected L&G, delivering enhanced returns to shareholders through a sharper focus on our Asset Management, Retail and Institutional Retirement businesses. Working together, these businesses will develop our position as a global leader
in addressing society's investment and retirement needs.
In 2025, L&G's leadership team took
this strategy to the next level of delivery. Reflecting our commitment to clear communication with investors and shareholders, we hosted capital markets 'deep dive' events to explain our growth strategy for each of our core businesses, setting out our key priorities, and how we will build our capabilities to secure success.
We are making significant progress. A total of 18 non-strategic assets in our Corporate Investments unit had been disposed of since the unit was
established in June 2024. The proceeds will be redeployed towards our share buyback programme, and to support the growth priorities of our core businesses.
In February 2025, we announced a
£1.8 billion transaction with Japanese insurer Meiji Yasuda Life, which saw them acquire our US protection business and, at the same time, establish a long-term strategic partnership with L&G to strengthen our position in US PRT. Following completion of the transaction in 2026, Meiji Yasuda will have a 5% economic interest in L&G, deepening the corporate relationship and further aligning interests. In October 2025, I was honoured to welcome a delegation from Meiji Yasuda led by Akio Negishi, Chair, and Hideki Nagashima, CEO, to London: a sign of both parties' high ambition for the partnership.
Partnering to accelerate growth is a key part of L&G's strategy. Following the acquisition of a strategic stake in Taurus, a US real estate business, at the end of 2024, in 2025 we acquired a 75% stake in real estate investor Proprium, building our European and Asian presence to internationalise our capabilities further.
In July, we announced the formation of a strategic partnership with Blackstone, to deepen our private credit capability, supporting product development and access to new markets in asset management, and strengthening our pipeline of assets to match our annuity liabilities, particularly in the US.
Investing for growth and resilience
Our strategy addresses long-term social and economic shifts, among them the transition from defined benefit (DB) to defined contribution (DC) pension schemes as the principal instrument for funding retirements. In 2025, L&G set an industry record by surpassing £200 billion in total DC assets under management (AUM) across the Group, building on our Retail workplace business's success in growing net flows (up 3.3% as at 31 December 2025).
The use of long-term capital in service of positive social and economic impact remains an important part of L&G's purpose, and we continue to direct our own capital and that of clients towards investments that combine strong financial and societal returns.
In 2025, we launched a £2 billion impact investment commitment to drive regional growth across the UK, targeting housing, infrastructure and urban regeneration.
We also signed the Mansion House Accord, committing alongside peers to direct more DC pension funds towards unlisted growth assets. Our 'Blueprint for Growth' research, published in 2025, points to the significant economic benefit to be realised through such measures.
L&G must also respond to emerging trends, including developments in Artificial Intelligence (AI). In 2026, we plan to introduce AI-powered features to some of our customer facing platforms with the aim to enhance customer experience through personalisation, faster service, and more intuitive digital journeys. AI is an opportunity for the Group to improve its customer service, while also being a growing investment proposition.
Strong financial performance
We delivered a resilient set of results in 2025, with an adjusted operating profit of £1.8 billion and core operating EPS of
20.93 pence, up 9% from 19.20 pence. Profit before tax from continuing operations more than doubled to £824 million. We maintained a strong Solvency II coverage ratio of 203% and capital generation in the year of £1.5 billion. After allowing for the impact of the Meiji Yasuda transaction and the related £1 billion share buyback, our full year 2025 Solvency II coverage ratio is 210%.
Evolving our team
Our leadership team continued to evolve in 2025, as we bolstered our talent to address changing needs, and said farewell to some long-standing members of the executive after successful tenures.
In March, we welcomed Katie Worgan to the team as the Group's first Chief
Operating Officer (COO). Our Group Chief Financial Officer (CFO), Jeff Davies, and Emma Hardaker-Jones, Chief People and Transformation Officer, both stood down in the second half of the year, having made substantial contributions to the evolution of L&G over the last eight years.
We were delighted to appoint Andrew Kail to the position of Group CFO, with Gareth Mee succeeding him as CEO of Institutional Retirement. Both appointments are a testament to the depth of our internal talent. Emma's successor, Emma Holden, joined as our Chief People Officer in February 2026.
We are also pleased to announce the appointment of Maria Alvarez-Scott to succeed Geoffrey Timms as Group General Counsel and Company Secretary in May 2026.
Looking to the future
As I prepare to move on from chairing L&G's Board, I should like to thank L&G's employees for their tireless work and commitment to serving our clients and customers. Their dedication, alongside the sense of purpose that motivates so
many of them, has spurred the Company's progress continually. I wish them well
as they lead the Group to even greater success in the future.
Sir John Kingman
Dividend policy
The Group's dividend policy states that we are a long-term business and set our dividend annually, according to agreed principles. The Board's intention for the
future is to maintain its progressive dividend policy, reflecting the Group's expected medium-term underlying business growth, including measurement of capital generation and adjusted operating profit.
Shareholder meetings
The 2026 Annual General Meeting (AGM) and General Meeting (GM) will be held
on Thursday 21 May 2026, at the British Medical Association, BMA House, Tavistock Square, Bloomsbury, London WC1H 9JZ, once again in a hybrid format, with facilities for shareholders to join and vote electronically.
Chair
Our strategy and business model
We aim to be leaders in retirement and protection solutions, and a leading global asset manager with public and private markets capabilities.
With a simpler, better-connected, and a more capital-light business model...
Asset ManagementWe are one of Europe's largest asset managers and a major global investor across public and private markets.
Institutional RetirementWe provide global institutional PRT solutions, guaranteeing the retirement income for corporate pension scheme members.
L&G RetailWe are a UK market leader in protection, workplace pensions and retirement income.
Our business model is underpinned by the depth and breadth of our resources and relationships, which allow us to execute our strategy.
People
Our people are the driving force behind our purpose, helping us to meet the needs of our customers and clients and achieve long-term commercial success.
Brand
We have a strong, modernised, and unifying masterbrand, one that supports our ambition to become a growing, simpler, better-connected L&G.
Capital
We are a long-term business with robust regulatory capital reserves. We invest our customers' pension assets and our own capital directly into the global economy in a way which benefits society as a whole.
Culture
We aim to build and maintain a culture that is respectful, inclusive and ambitious.
Customer loyalty
We've been building loyalty since 1836. Today we do that by helping companies protect their employees' financial security, and guiding people towards better outcomes throughout their lifelong financial journeys.
Sustainability
Aligned with our purpose, we're committed to running our business responsibly and sustainably.
A connected view of our performance and impact
We benefit from scale in each of our three core businesses, which work together to deliver on our purpose and drive synergies across the Group.
Our strategy is to deliver sustainable growth, sharper focus, and enhanced returns, with a vision of becoming a growing, simpler and better-connected L&G.
Across our full reporting suite, we demonstrate how these priorities translate into measurable progress and present a connected narrative of how our strategy delivers for shareholders, customers, clients, society, and the environment.
Sustainable Growth
Market leadership in high growth segments
Asset Management
We generate revenue by charging management and performance fees for managing client assets across public and private markets, while also earning investment returns on our own balance sheet holdings.
We add value through differentiated access to public and private markets, combined with strong long-term investment performance and responsible stewardship that help clients achieve their financial objectives.
£1.2tn AUM
L&G's Flow solution has now surpassed £1 billion in pension de-risking transactions, highlighting its growing role in helping smaller schemes efficiently secure member benefits.
Read more on this in our
Annual Report page 19
We have launched a
new Digital Infrastructure Fund, securing around
€600 million at first close to invest in essential UK and European digital infrastructure, and advance its private markets growth strategy.
Read more on this in our
Annual Report page 21
Our $50 million investment in Landsvirkjun expands our access to high-quality renewable energy assets, strengthening our
clean-power portfolio while contributing to Europe's long-term decarbonisation goals.
Read more on this in our Climate & nature report group.legalandgeneral.com/ Climatereport2025
Institutional Retirement
We secure and protect the retirement benefits for pension scheme members in the world's three largest PRT markets: the UK, the
US and Canada.
This 'pensions de-risking' gives companies greater certainty over their liabilities while providing guaranteed payments to individuals within their schemes.
£11.8bn
new business premiums
Sharper Focus
Simplified business model focused on execution
Our strategic partnerships enhance our capabilities and strengthen our position across our three core businesses. The sale of our US protection business and building a partnership with Meiji Yasuda has helped simplify our business and our collaboration with Blackstone enhances our private credit capabilities.
L&G has expanded its Guided Retirement Planner to younger DC members, giving them personalised, real-time support to build stronger long-term retirement outcomes, and boost financial confidence earlier in life.
Our new 'AI for Business Value' programme modernises our focus on the skills and technologies that assist our competitive position, upskilling colleagues to deploy AI where it can drive the greatest efficiency and impact.
Retail
We help millions of people in the UK create brighter financial futures. We support their savings, protection, mortgage and retirement needs through our reportable segments -Retail Retirement and Insurance.
We are a leading provider of UK protection and retirement income solutions. Our workplace savings business administers the largest and fastest-growing commercial UK Mastertrust.
c.12.1m
people's
needs met
1
1. This includes individual customers and employees covered under employer Group Protection and Workplace schemes.
Read more on this in our
Annual Report page 16
Read more on this in our
Annual Report page 23
Read more on this in our Social impact report group.legalandgeneral.com/ Socialimpactreport2025
Enhanced Returns
Strong fundamentals and capital discipline to drive shareholder returns
L&G delivered disciplined capital management, completing a £500 million buyback in 2025 and announcing the first tranche of our £1.2 billion buyback to be executed over the next 12 months, contributing to cumulative shareholder returns of
£4.2 billion.
Read more on this in our
Annual Report page 6
Read more on this in our L&G Investor Deep Dive: Institutional Retirement
Read more on this in our L&G Investor Deep Dive: Asset Management
Read more on this in our
L&G Investor Deep Dive:
Retail group.legalandgeneral.com/CME
Chief Executive Officer's Q&A
A growing, simpler and better-connected L&G
What stands out about L&G's performance and strategic progress in 2025?
In 2025, we continued to deliver, with strong momentum, against our strategy: building a growing, simpler and better-connected L&G, and positioning the Group to generate sustainable, capital light growth over time.
We completed a £500 million share buyback in 2025. In addition, we announced
Retail continues to grow, with £6.2 billion of Workplace Savings net flows, £1.8 billion in Individual Annuity sales, and
c.270 million of Protection premiums, as our complementary businesses support customers throughout their lifetimes.
In Asset Management, our Private Markets AUM grew, driven by the acquisition of Proprium Capital Partners. The growth
of our Private Markets Access Fund has reached over £2.7 billion in AUM in just over 18 months. Our Affordable Housing
Fund of c.£500 million and the recent
launch of the Digital Infrastructure Fund,
the first tranche of our £1.2 billion buyback in 2026, to be executed over the next 12 months, comprising £1 billion from the proceeds received from the sale of our US protection business, and £200 million from our existing distribution policy. Together, these actions contribute to cumulative shareholder returns of £4.2 billion.
Growing
We delivered strong financial and strategic outcomes across our businesses. Institutional Retirement wrote £11.8 billion of PRT including a £4.6 billion PRT transaction with Ford - the largest in the UK market in 2025 - reinforcing our position as a leading player in global PRT.
mark milestones in democratising private markets to meet the long-term needs of investors across geographies.
Simpler
We made meaningful progress in reducing complexity and focusing resources where we can deliver the strongest returns. Our collaboration with Microsoft to introduce an AI enabled customer service platform will improve the experience for our Retail customers and increase operational efficiency. We also launched a refreshed, global brand identity, giving us a unified and distinctive brand across all our businesses.
Better-connected
We established and strengthened our strategic partnerships to enhance origination, broaden distribution and increase capital efficiency.
Our purpose - 'Investing for the long term. Our futures depend on it' - guides our commercial decisions, and how we build a stronger, more future proof business.
António Simões
Group CEO
Legal & General Group Plc Annual report and accounts 2025 6
Meiji Yasuda Life: We announced the largest transaction in L&G's history, combining the sale of our US protection business with a long-term partnership.
Proprium Capital Partners: The acquisitions of a 75% stake in Proprium accelerates our private markets ambitions and extends our real estate capabilities into new geographies.
Blackstone: Our partnership with Blackstone broadens our asset origination pipeline, enhances capital efficiency in our annuity book, and supports new hybrid product innovation across public and private markets.
Together, these actions build a platform for long-term value creation: more resilient earnings, greater capital efficiency, and
a broader set of growth opportunities.
How has L&G lived its purpose this year?
Our purpose - 'Investing for the long term. Our futures depend on it' - guides our commercial decisions, and how we build
a stronger, more future proof business. In 2025, we delivered tangible progress:
We are meeting the needs of our
c.12.1 million Retail customers with increased digitalisation and personalisation of our services exemplified by the L&G app and our Guided Retirement Planner.
We committed £2 billion to UK regional growth which includes 10,000 affordable homes and supports 24,000 jobs, demonstrating that impact and long-term returns can be mutually reinforcing.
We strengthened our ability to originate long-term assets at scale through our strategic partnerships.
These actions drive delivery of our strategy while also supporting broader economic and societal outcomes.
How has culture evolved to support delivery of strategy and purpose?
Our new behaviours - challenge positively, commit together and act decisively - have driven improvements in pace, accountability and execution across the Group. In our Voice survey, 85% of colleagues saw these behaviours role-modelled, and we saw measurable improvements in positive challenge, collaboration and experimentation. As a result, we're creating a culture with clearer expectations which supports the disciplined delivery required to execute our strategy and build a more resilient L&G.
What are your priorities for 2026?
In 2026, we will continue to execute
our strategy, to build a growing, simpler, better-connected L&G, with a clear vision to become a world leader in solving society's investment and retirement needs. This year, marks our 190th anniversary, a timely reminder of the value of resilience and
long-term thinking.
As we continue delivering our strategy, we are well placed - as the UK's largest asset manager and largest pension provider - to play a central role in addressing one of the defining challenges facing the UK today: how people achieve financial security later in life.
We're committed to tackling this challenge in two ways. First, by using the power of pension capital to invest in ways that generate long-term economic prosperity, as highlighted in our Blueprint for Growth, which sets out the potential for up to
£220 billion of additional UK investment over the next decade if the right policy conditions are created. Secondly, by helping improve outcomes for the people who are working, saving, and retiring in that economy. This is a decades long commitment, but it requires action today, because financial wellbeing in later life depends on the conditions created across a lifetime.
As we look ahead to 2026, our focus is on executing our strategy, delivering on the goals set at our 2024 Capital Markets Event (CME). We'll do this with new leadership across the Group, including Andrew Kail as Group CFO, Gareth Mee leading Institutional Retirement, Emma Holden as Chief People Officer, and Maria Alvarez Scott, who will become Group General Counsel and Company Secretary in May.
Any closing reflections?
I would like to thank Jeff Davies and Emma Hardaker-Jones, who stepped down from their roles as Group CFO and Chief People and Transformation Officer in 2025, and Geoffrey Timms, who will step down as Group General Counsel and Company Secretary in May 2026, for their leadership and support during my first two years.
I would also like to recognise the enormous contribution made by Sir John Kingman as he steps down as Group Chair. Through nearly a decade as Chair, he has made an indelible impact on L&G and has been a tremendous support to me, and my predecessor.
We welcome Scott Wheway, who joined the Board in January 2026 as an Independent Non-Executive Director and Group Chair Designate, and look forward to benefiting from his leadership and experience.
Together with my c.10,500 colleagues, I am confident in our ability to continue building a growing, simpler and better-
connected L&G, and to deliver long-term value for our customers, shareholders, clients and society.
António Simões
Our purpose, strategy and behaviours in action
Our purpose, strategy and behaviours shape how we operate as a Group.
The feature spreads illustrate this through examples - how our purpose statement is brought to life in practice, how our strategy is driving progress across our businesses, and how individuals exemplify our behaviours. See pages 9 to 11 for further detail.
Group CEO
Clear reasons to invest in L&G
Our investment case is clear and compelling…
1.
We have market leading businesses which are performing strongly, and which benefit from structural and scale advantages.
2.
We are well positioned to capitalise on the significant growth
we expect over the coming decade in our core markets.
3.
We have the synergistic business model to unlock these growth opportunities. Our synergies will amplify this growth and deliver more than the sum of their parts.
4.
And we are set to deliver attractive and sustainable capital returns, with an all-in yield of 17% over the next 12 months.
Leading businesses in growing markets
Global leader in PRT Largest UK
Asset Manager
c.25% of DC market, with >£200 billion AUM
Synergistic business model
Reinforcing business model positioned for long-term growth
Shared services at scale to maximise cost efficiency
Growth accelerated through strategic partnerships
Attractive, sustainable capital returns
Delivering an all-in yield of 17% over the next 12 months
Returning
£5 billion+ to shareholders over 2025-2027
Disciplined capital allocation framework
Discover more online Full year presentation slides group.legalandgeneral.com/cme/Results
Our purpose, strategy and behaviours in action
Our purpose:
Investing for the long term. Our futures depend on it.
Strategic report
Our purpose captures our belief that long-term societal value and L&G's commercial success go hand in hand.
We believe it's possible to generate positive returns today while helping to build a better
Pudding Wood
To support our purpose in action, we have launched a forestry and habitat creation project at Pudding Wood, a 155-hectare site near Gatwick Airport.
Working with ecologists, forestry specialists and local partners, we are designing a site that will sequester around 25,000 high-integrity carbon credits, plant up to 140,000
Pudding Wood reflects the very best of L&G, our people working together with clarity and purpose to deliver long-term, measurable impact. It not only strengthens the value of our land but provides vital insights into how nature-based solutions can be scaled across the UK, helping address climate change and nature loss.
future for all. It's about being purposeful in
the way we make and invest money, so we can build a strong, resilient business that
native trees and restore diverse habitats,
including woodland, grassland and ponds.
enables security, progress and prosperity for society and the communities we serve for years to come.
We measure our success by the value we create for our business, for our customers and clients and for wider society.
The project aims to support priority species such as the nightingale and great crested newt, while improving access to nature and supporting wellbeing in the local community and amongst our employees. As a test case for high-quality carbon removals, Pudding Wood supports our net zero ambitions and creates lasting environmental and social value.
Sustainability is inseparable
from our purpose. It means acting with urgency today to protect the long term, while building a resilient business that makes decisions that are right for the planet, society and our shareholders.
António Simões
Group CEO
Legal & General Group Plc Annual report and accounts 2025 9
Strategic report
Our purpose, strategy and behaviours in action continued
Our strategy
In 2025, we made significant progress on the strategy we established in 2024, translating ambition into delivery and advancing our vision for a growing, simpler and better-connected L&G.
A landmark pension deal with Ford
During the year, we completed a milestone £4.6 billion buy-in with the Ford pension schemes, the largest PRT transaction announced in the UK in 2025 and the second largest in our history. The transaction reflects disciplined execution of our strategic priorities.
With a sharper focus on markets where we have
Sustainable growth
Market leadership in high growth segments
We want to sustainably grow our three businesses, seizing the opportunities in Institutional Retirement and investing to grow Asset Management and Retail. Each of our three businesses has reliable earnings and the potential for significant growth.
Sharper focus
Simplified business model focused
on execution
We are adopting a more disciplined approach to capital allocation, guided by our internal capital allocation framework that looks at the strategic fit and financial performance of each business.
Enhanced returns
Strong fundamentals and capital discipline to drive shareholder returns
We seek to deliver strong returns over time, through making the most of our synergies, investing in the business for long-term growth and returning capital to shareholders through dividends and share buybacks.
deep expertise, we were able to structure and complete a complex deal at pace.
Delivering transactions of this scale supports sustainable growth in Institutional Retirement. The Ford buy-in contributed to £11.8 billion of global PRT volumes in 2025, demonstrating strong momentum and the advantages of our synergistic business model. Close collaboration across Institutional Retirement, Asset Management and Group functions showcases our ability to deploy capital effectively and secure long-term outcomes for pension scheme members.
The transaction also supports our priority to enhance returns, leveraging our investment capabilities to back long-dated liabilities with high-quality assets, delivering resilient, and predictable long-term performance.
Our people were central to this achievement. They bring a collaborative and decisive approach, while positively challenging assumptions to drive better outcomes. Their approach continues to underpin our success and our commitment to delivering value for customers, shareholders, clients, and society.
Legal & General Group Plc Annual report and accounts 2025 10
Strategic report
Our behaviours
In the past year, we embedded our refreshed behaviours - Challenge positively, Commit together, Act decisively -across the Company.
These behaviours provide a clear, practical guide for how we work and collaborate, building a culture of accountability and high performance. They were shaped by our Voice survey feedback, ensuring we focus on where we can improve together.
Celebrating our people
We hosted our fourth Annual Awards at Brighton Dome, Brighton, an opportunity to celebrate our people who demonstrated these behaviours at their best, helping
to make L&G the best it can be for our customers, colleagues, and wider society. The inspiring stories behind every winner and finalist reflected the culture we are building, one that is growing, simpler and better-connected, and consistently
delivering for our customers, communities, and each other.
The Annual Awards
celebrated the standout achievements of the past year, and the people and projects that have moved us closer to our vision of a growing, simpler and better-connected L&G. Congratulations to all our 2025 winners.
António Simões
Group Chief Executive Officer
Legal & General Group Plc Annual report and accounts 2025 11
Chief Financial Officer's review
Our business model is well positioned to capture
significant growth opportunities across our core markets.
Strategic report
Strong financial performance in 2025:
Core operating EPS
20.93p
(2024: 19.20p)
Our three-year financial targets:
CAGR in core operating EPS
6-9%
(2024 - 2027)
Operating return on equity (ROE)
54.4%
(2024: 34.8%)
Solvency II operational surplus generation (OSG)
£1,530m1
(2024: £1,461m)
Operating return on equity
>20%
(2025 - 2027)
Cumulative capital generation
£5-6bn
(2025-2027)
2025 has been a year of meaningful progress. We have continued to sharpen our portfolio, complete strategic divestments, and focus the Group on our core, synergistic businesses.
Andrew Kail
Group Chief Financial Officer
1. Excludes Transitional Measure on Technical Provisions (TMTP) amortisation of £75 million (2024: £83 million). The methodology for calculating Solvency II operational surplus generation has been updated such that TMTP amortisation is now reflected as an operating variance. Comparative information has been re-presented accordingly. See further information on APMs on page 250.
Legal & General Group Plc Annual report and accounts 2025 12
Overview
It is a privilege to present a strong first set of financial results as Group CFO of L&G. Having previously served as CEO of
Institutional Retirement, I step into this role with a deep understanding of the Group's financial drivers, the strength of our balance sheet, and the opportunities to deepen our competitive advantage. My focus is to build on the strong foundations that I have inherited as a Finance function, while driving enhanced financial performance.
In 2024, António set out a clear vision to become a growing, simpler, better-connected business - and as well as delivering strong financial performance, 2025 has been a year of meaningful
progress against that framework. We have continued to sharpen our portfolio, complete strategic divestments, and focus the Group on our core, synergistic businesses.
Strong financial performance in 2025
We have delivered another strong set of results in 2025 and excellent new business volumes. During the year, core operating profit increased by 6% to £1,623 million (2024: £1,534 million) and we continue
to demonstrate clear progress against our Group financial targets.
Our insurance profits from Institutional Retirement and Retail, totalled £1.6 billion (2024: £1.5 billion), and both are on
track to meet 2028 growth targets. Under IFRS 17, our insurance businesses provide a stable and highly predictable source
of spread and underwriting earnings from our store of future profit. This stock of CSM and RA is released steadily into profit over the lifetime of our policies. Our store of future profit is £13.3 billion, with CSM of
£12.4 billion (up 2% over the year). This reflects the value created through the significant new business we have written, net of large releases.
We also continue to unlock increased and substantial value from our in-force annuities portfolio of £93 billion (2024: £85 billion), with asset optimisation contributing
£331 million, double the profit in 2025 versus the prior year. This was supported by a heightened focus on portfolio optimisation initiatives as well as increased opportunity from writing Annuities business at lower locked in-yields as we continue to be in
a tighter credit spread environment.
In Asset Management, financial performance was broadly stable in 2025 at £402 million. However, we made clear progress in repositioning the business for sustainable earnings growth. The year delivered a record £34 million of Annualised Net
New Revenue (ANNR), reflecting improved investment performance and stronger
client engagement. In addition, our strategic shift toward higher-margin capabilities continued to gain traction, with the average fee margin increasing to 9.1bps, despite a broader market backdrop of fee compression. Together, these developments mark a meaningful turning point: the business is now positioned for revenue growth to outpace cost growth in the years ahead.
Asset revaluations have arisen across a number of assets in our Asset Management and Corporate Investments portfolios, that have been adversely affected by broader macroeconomic conditions, particularly in the real estate and growth equity sectors. We have taken active steps in 2025 to mitigate the risk of any further downside, subject to any significant changes in the macroeconomic environment.
Our balance sheet remains incredibly strong. Solvency II OSG grew by 5% in 2025, with OSG per share up 8%. Our Solvency II coverage ratio now sits at 210%, after allowing for the transaction with Meiji Yasuda and
the related £1 billion share buyback.
Our medium-term target operating range for Solvency II coverage is 160% to 190%,
as we disclosed for the first time in our 2025 results. Our ratio will converge to this level as we deploy capital to meet our growth ambitions whilst we deliver growing and sustainable capital generation which provides increasing headroom over our committed dividends.
We are firmly on track to return over
£5 billion to shareholders over 2025-2027.
We completed a £500 million buyback in 2025 while increasing the dividend by 2% to 21.79p. We have announced the first tranche of our £1.2 billion share buyback programme.
Providing transparency, clarity and guidance
A key priority for me as Group CFO is ensuring that our disclosures clearly reflect the underlying simplicity, discipline and strategic focus we have delivered as we progress our strategy.
Since stepping into the role in December, I have spent time listening to investors,
analysts, and teams across the organisation and it's clear we have an opportunity to provide greater clarity and transparency
on aspects of our financial performance that I am told can feel opaque. We will be strengthening transparency, guidance,
and confidence in how we report and better explain our longer-term drivers of use of capital and sustainable growth.
Looking ahead
We have entered 2026 with excellent momentum and a confident outlook.
Each of our three businesses begin
the year with strong commercial traction. In Institutional Retirement, we are entering
2026 with a healthy PRT pipeline. In Retail, Workplace scheme assets of £3.7 billion secured in 2025 will fund this year, supporting further growth. In Asset Management, we will build on the momentum established
in 2025, as the business moves out of a prolonged period of contraction and into a phase of growth under our refreshed strategy.
Our business model positions us well to capture the significant growth opportunities emerging across our core markets.
As we look ahead, I am focused on building on this momentum throughout 2026 as
we expect to deliver another year of core operating EPS growth at the top end of
our 6-9% target range (CAGR 2024-2027).
Andrew Kail
Group Chief Financial Officer
Key performance indicators (KPIs)
Our 2025 performance represents the impact of significant strategic progress as our businesses deliver strong financial results.
Guide to symbols used in these financial results:
Alternative performance measure (APM), see page 248 for definitions.
Key measure in the remuneration of executives, see pages 90 to 91 for definitions.
Profit before tax £m
£824m
(2024: £448m)1
Purpose: to measure the profit before tax of the Group.
Profit before tax from continuing operations of
£824 million (2024: £448 million) was driven by adjusted operating profit of £1,756 million (2024: £1,711 million), partially offset by costs
associated with M&A and restructuring activities, and investment variance from modelling refinements and assumption changes, as well as asset revaluations and the impact of in-year versus expected returns.
Full year dividend p
Core operating earnings per share p
20.93p
(2024: 19.20p)1
Purpose: to illustrate the contribution to operating profit (after tax) from our core business, associated with each share owned by our investors
Core operating earnings per share increased to
20.93 pence (2024: 19.20 pence), driven by year on year growth in adjusted operating profits and lower average shares. following our buyback programme.
Solvency II surplus £bn
9.9 9.2 9.0
Operating return on equity %
54.4%
(2024: 34.80%)
Purpose: to show how efficiently we are using our financial resources to generate a return for shareholders.
Operating return on equity of 54.4% is driven by strong adjusted operating profits and returns to shareholders from both buybacks and dividends.
Solvency II coverage %
236 224 232
18.45
19.37 20.34 21.36 21.79
8.2
7.0
187
203
2021 2022 2023 2024 2025
Purpose: to show the level
of distribution to shareholders.
The Board has recommended a final dividend of 15.67 pence, giving a full year dividend
of 21.79 pence, up 2% from the prior year
(21.36 pence). This is consistent with our stated ambition to grow the dividend at 2% per annum out to 2027.
Total shareholder return %
2021 2022 2023 2024 2025
Purpose: to demonstrate the surplus capital position over the solvency capital requirement.
Solvency II surplus of £7.0 billion (2024: £9.0 billion) over our capital requirement demonstrates the continued strength of our balance sheet.
2021 2022 2023 2024 2025
Purpose: to demonstrate the balance sheet strength of the Group.
The Solvency II coverage ratio decreased to 203% (2024: 232%), primarily reflecting the impact of increased returns to shareholders in line with
our stated ambitions and market movements.
+24%
(2024: +1%)
Purpose: to measure the total return to shareholders, including dividends and share price movements, over time.
In 2025, total shareholder return (TSR) was broadly in line with the FTSE 100, delivering
a gain of 24%. Strong capital returns supported performance, although share price appreciation was more muted as investors focused on perceived headwinds in the PRT market and looked for further evidence of execution against our Asset Management turnaround strategy. Over a ten-year period, the stock has delivered a 107% return; below the FTSE 100 but significantly ahead of
the FTSE 350 Life Index, which returned 70% over the same period.
1. Comparative information has been re-presented to reflect the results of the US protection and US pension risk transfer (PRT) businesses as discontinued operations. See Note 1 of the financial statements on page 136 for further information.
Tax review
Our purpose motivates our strategy, how we think, how we act, and how we create a lasting impact for our clients, customers, shareholders and society. This includes being transparent with our stakeholders, and the public, on our tax affairs and our approach to tax.
Total tax contribution
Our total tax contribution is the amount of tax that we pay together with the amount of tax that we collect on behalf of our employees, suppliers, customers, clients and policyholders. We paid
£529 million (2024: £479 million) of tax and collected £1,476 million (2024: £1,269 million).
Our total tax contribution of £2,005 million is higher this year. The increase is primarily due to the volume of PAYE collected on administered pension schemes.
£2,005m
In 2025, our total tax contribution was £2,005 million (2024: £1,748 million), of which 92% (2024: 93%) arose in our UK businesses and 8% (2024: 7%) overseas.
Aligned with our purpose, we take a responsible approach to tax and are mindful of how the tax we pay and collect contributes more broadly to the
UK and global communities in which we operate.
Grace Stevens
Chief Tax Officer
Tax supplement
You can read more about our tax strategy, our governance, what taxes we pay, and a reconciliation of our tax charge to the taxes we paid in our Tax supplement, which has been approved by the Board and can be found here:
Discover more online
group.legalandgeneral.com/Taxsupplement2025
Our 2025 tax position
Our effective tax rate for the year is 24% (2024: 41%). This is lower than the headline UK corporate income tax rate of 25%
(2024: 25%) that applied for 2025. The difference between our effective tax rate and the UK corporate income tax rate is largely due to a combination of the different rates
of corporate income tax that apply to profits earned outside of the UK reducing the effective tax rate and non-deductible expenses increasing the effective tax rate.
The global minimum tax regime
The global minimum tax rules, as enacted by the UK (Pillar II rules), applied to the Group in the year. No additional UK top-up-tax liability is due for the current year. An amount of £35 million, relating to the Group's reinsurance businesses in Bermuda during 2024, will be settled in June 2026.
From 1 January 2025, the Bermudan Government introduced a corporate income tax regime, applying to profits generated by our reinsurance operations located there.
We have begun paying corporate income tax on our taxable profits arising in 2025, with £20 million paid in August 2025 to the Bermudan tax authorities.
We do not expect any Pillar 2 top-up tax across the Group with the majority of the jurisdictions expected to meet the transitional safe harbours.
The tax environment
Changes to the tax environment impact our businesses, our investments, our employees, our customers and clients.
We contribute to discussions and research on the tax landscape, prospective changes and active consultations on new legislation and guidance. This is with a view to ensuring the impact across society, our customers, clients, shareholders and wider stakeholders is understood and that new rules are implemented effectively.
The pace of change and increased volume of legislation and guidance remains significant for us, our policyholders and our employees. The need for a clear, holistic approach to tax policy along with certainty and stability in the tax regime remains essential for long term planning and investment decisions
for everyone.
Further detail on our main risk areas and how we manage those risks can be found in our Tax supplement.
Legal & General Group Plc Annual report and accounts 2025 15
Business review
Progressing on our vision for growth and shareholder value.
Building on our strategy in 2025
Our businesses have shown commercial momentum as we execute on our strategy to deliver sustainable growth, a sharper focus, and enhanced returns. Throughout the year, we have become a growing, simpler and better-connected L&G and have focused on our three core businesses: Institutional Retirement, Asset Management and Retail.
Our Institutional Retirement business continued to demonstrate our position as a global market leader in PRT, Asset
Management built out our capabilities across our private markets platform, and Retail positioned our Workplace Savings business to capitalise on the structural DB to DC shift. We have also made continued progress on the disposal of non-strategic assets within our Corporate Investments unit.
Our actions over 2025 have allowed
us to return value to shareholders through
£500 million of buybacks in 2025 and a further £1.2 billion is planned to be returned to shareholders over the next 12 months, following the completion of the sale of our US business to Meiji Yasuda.
6-9%
CAGR in core operating EPS (2024 - 2027)
>20%
Operating return on equity (2025 - 2027)
£5-6 billion
Cumulative capital generation (2025-2027)
Progressing with partnerships
Throughout 2025, we made meaningful progress in delivering our strategy.
Our strategic partnerships enhance our capabilities and strengthen our position across our three core businesses.
The partnership with Meiji Yasuda helped simplify our business. We disposed of our US protection business, retaining an economic interest in the US PRT business by utilising our capabilities to reinsure 80% of existing PRT business and new premiums won under Meiji Yasuda's ownership. We will continue to collaborate closely with Meiji Yasuda
on future opportunities as we further deepen our long-term partnership.
Our strategic partnership with Blackstone enhances our private credit capabilities. Through this partnership, our annuities business will benefit from access to Blackstone's private credit origination platform, providing a pipeline of diversified investment grade assets, predominantly from the US.
Pictured above: L&G and Blackstone employees after announcing the longterm strategic partnership.
Discover more online Capital markets event (CME)For full details of our external ambitions, see our capital markets event: group.legalandgeneral.com/CME
Legal & General Group Plc Annual report and accounts 2025 16
Strategic report
Institutional Retirement
Our Institutional Retirement business provides PRT solutions, using our scale and investment capabilities to write high-quality business that delivers sustainable returns. Over 2025, we maintained strong transaction momentum, including the largest UK PRT transaction of the year, totalling £4.6 billion.
We are well positioned across the three largest global PRT markets to capture opportunities and drive sustainable growth in L&G. In 2026, we will continue to leverage our scale, asset sourcing expertise and international reach to capture the significant opportunity across all segments of the market.
With a busy pipeline and a synergistic model that combines our insurance and investment capabilities, we are positioned to provide sustainable growth and deliver on our ambitions to:
Grow Institutional Retirement adjusted operating profits at 5-7% CAGR (2023-2028).
Write £50-65 billion of UK PRT at a capital strain of less than <4% (2024-2028).
Asset Management
Our Asset Management business provides diversified public and private investment solutions to clients globally, benefiting from synergies, scale, and the expertise to deliver long-term growth. With a refreshed leadership team, we expanded our global reach and enhanced our capabilities across both public and private markets by broadening our product offering, progressing on key initiatives and expanding partnerships, improving access to differentiated asset classes.
We expect strong growth over the next decade and will continue to invest in new capabilities that support our longterm ambitions. This investment will enable us to scale in private markets, raise our profile internationally and enhance our solutions products.
The investments made in our capabilities over 2025 provide the foundations for future growth and position us to:
Deliver adjusted operating profits of £500-600 million by 2028.
Achieve cumulative ANNR of £100-150 million (2025-2028).
Grow our private markets platform AUM to £85 billion by 2028.
Retail
Our Retail business supports customers throughout their financial journeys across our core business areas of
Workplace Savings, Retirement and Protection. Guided by our commitment to support our c.12.1 million customers throughout their lifetimes, in 2025 we enhanced the quality, personalisation, and accessibility of our services.
Our businesses continue to evolve with new capabilities, strengthened partnerships and targeted innovation. We
will accelerate our leading UK DC platform by capitalising on the DB to DC shift and grow our Retirement and Protection businesses through product innovation and increased digitalisation.
Using our combination of scale, service and technology, we will continue to deliver high-quality outcomes for customers which will support us in achieving our revised ambitions announced in the October 2025 Deep Dive to:
Achieve 4-6% CAGR in adjusted operating profit (2024-2028).
Generate £40-50 billion of workplace net flows (2024-2028).
Corporate Investments unit
Our Corporate Investments unit has played a key role in simplifying the Group and unlocking value from our non-strategic assets. We have successfully realised the
majority of value from the original asset portfolio, in line with our intentions. As we enter 2026, we are focused on executing the remaining disposals at pace.
Our team in the Corporate Investments unit have successfully completed the sale of 18 assets since inception. At the end of 2025, the remaining portfolio value was £0.5 billion, following updated valuations impacted by wider macroeconomic trends, particularly in the real estate and growth equity sectors.
We continue to maximise value for our shareholders, with proceeds to be reinvested in line with our capital allocation framework.
Legal & General Group Plc Annual report and accounts 2025 17
Business review continued
Institutional Retirement
Highlights
Adjusted operating profit
£1,168m
(2024: £1,097m)
Driven by releases from store of future profit and investment margin.
£11.8bn
Global PRT volumes
Institutional Retirement combines
Strategic report
Profit before tax (PBT) attributable to equity holders
£917m
(2024: £544m)
Driven by adjusted operating profit, partially offset by the impact of model and assumption changes, which add to our store of future profit.
Invested in our Annuity portfolio1,2
£93bn
PRT expertise, nearly 40 years of strong customer service and a disciplined investment engine
supplying origination, diversification and liquidity. We deliver capital efficient returns for L&G while supporting the UK economy by deploying capital into housing, regeneration and infrastructure that generate long-term income and jobs.
Gareth Mee
CEO, Institutional Retirement
(2024: £10.3bn)
With 63 schemes in the UK, US and Canada.
Buy-in with Ford pension schemes
£4.6bn
The UK's largest PRT transaction in 2025.
Customers met in person
>3,400
(2024: >3,000)
More than any other year.
(2024: £83bn)
Growing spread earnings from Annuities portfolio.
Members onboarded
+126,000
(2024: +64,000)
A record year for the business.
In the UK, annuity assets across Institutional Retirement and Retail are managed together. We show here the combined value. Annuity assets reflect Annuity investments, but excludes shareholder assets, is net of derivative liabilities and includes non-financial assets.
Excludes non-retained US PRT business post Meiji transaction.
2025 key activities
In Institutional Retirement, we continued to demonstrate our position as a global leader in PRT, writing £11.8billion of business with 63 schemes in the UK, US and Canada. In the UK, we completed 45 schemes, 34 of which were with clients of our Asset Management business. Our long-standing relationships with schemes through Asset Management, combined with the innovative solutions we develop for all our clients, reinforce the competitive advantage of our synergistic operating model and highlight the value they continue to deliver.
Institutional Retirement is supporting L&G's vision to be a world leader in solving society's investment and retirement needs. Our strategic partnerships play a key role in supporting this vision, and in 2025 we announced a long-term partnership with Blackstone.
The partnership combines the strength
of L&G and Blackstone's respective credit platforms to enhance L&G's competitive advantage in annuities and bolster its asset management proposition in key geographies and channels. In December, we participated in our first Blackstone-originated investment,
a $475 million credit tenant lease triple net lease transaction with a market-leading grocery retailer in the US and Europe.
Focusing on our customers
Member experience is increasingly key in insurer selection. With our in-house model and UK-based team, we deliver personal, expert support to our clients and customers throughout the buy-out journey. While we're proud of our strong service reputation, we're investing heavily to strengthen our proposition and have launched a multi-year programme to enhance both our service and underlying technology.
We are committed to delivering excellent customer service to our over 750,000 customers. We are proud that this was recognised by our retention of Customer Contact Association's (CCA) Global Strategy Accreditation for the eighth consecutive year. In addition, we secured four awards at this year's CCA Global Excellence Awards, including being named as Customer Service Team of the Year.
Our team members are key to delivering great customer outcomes. Our employees were highly commended for Best Employee Experience at the European Contact
Centre & Customer Service Awards and our actuarial teams won the Supporting Development and Training Scheme of the Year award at the Professional Pensions Rising Star Awards.
Strategic report
This year, we met over 3,400 customers in person, more than ever before, with face-to-face conversations at Customer Roadshows across the UK, and we welcomed over 3,000 visitors to our dedicated customer lounge
at BBC Gardeners' World Live 2025, marking our sixth year at the event. These engagements are an important part of
how we deliver excellent service, providing valuable opportunities to hear directly from our customers and ensure we continue to support them in the best possible way.
New business
£4.6 billion buy-in with Ford pension schemes
In October, we announced the completion of two buy-ins totalling £4.6 billion with pension schemes sponsored by Ford Motor Company Limited, securing the benefits of over 35,000 members and representing the largest risk transfer transaction announced in the UK in 2025.
This transaction deepens a decade-long relationship with Ford, a client of our Asset Management business and through
L&G's price lock and in-specie asset transfer solutions, achieved a cost-efficient execution.
£1.6 billion buy-in with the BP Pension Fund
We completed a £1.6 billion buy-in with the BP Pension Fund, marking a first transaction for the c.£18 billion scheme.
L&G provided a gilt-based price lock using the Fund's existing gilt holdings, giving price certainty amid volatile markets and supporting smooth execution of the transaction.
£1.1 billion buy- in with the NatWest Group Pension Fund
We secured £1.1 billion of liabilities with NatWest Group Pension Fund, a long-standing client of our Asset Management business.
£800 million buy-in with Honda Group - UK Pension Scheme
In July, L&G completed an £800 million buy-in with the Honda Group - UK Pension Scheme, securing the retirement benefits of over 1,700 retirees and over 3,000 deferred members.
Leveraging its combined investment and insurance expertise, L&G crafted bespoke solutions for the Scheme, including a tailored price lock to the Scheme's assets and a flexible deferred premium structure to support the run-off of illiquid holdings.
US PRT deals
In February 2026, we completed the sale of our US insurance entity to Meiji Yasuda. This sale establishes a long-term strategic partnership with Meiji Yasuda and will accelerate our international growth ambitions.
We will retain a strong presence in the US PRT market, which is the largest PRT market in the world, by reinsurance
Sustainable Growth
L&G Flow surpasses
£1 billion milestone
Since its launch in 2023, L&G Flow, our proprietary solution for smaller pension schemes, has secured a landmark £1 billion of liabilities with 62 pension schemes. With L&G Flow, we have facilitated efficient access to the de-risking market and secured the benefits of over 10,000 members.
In 2025, £360 million of liabilities were secured with transactions ranging in size from £2 million to over £80 million, demonstrating our commitment to supporting pension schemes of all sizes and our ability to scale responsibly.
Flow is our solution designed specifically to meet the needs of smaller pension schemes, which offers a unique combination of guaranteed pricing, flexible post-sale experiences, and dedicated support, ensuring a smooth and efficient transition for schemes under
£150 million.
treaties of new and existing business from the Banner Life family of companies (owned by Meiji Yasuda).
Over 2025, L&G secured c.$1.8 billion of US PRT business across 15 transactions. We continued to provide excellent service to our over 200,000 annuitants, who will continue to be served well by the Banner Life family of companies going forward.
L&G has written over $14.2 billion in total business across 134 deals since entering the US PRT market in 2015, delivering a legacy of success which will be capitalised in the future as part of our long-term partnership with Meiji Yasuda.
Canadian PRT deals
We had another strong year in the Canadian market, executing three transactions, totalling over CAD$630 million reinsured
in partnership with a Canadian regulated insurer. Our continued success provides confidence that we have a compelling proposition in Canada, and brings our total premium reinsured to CAD$3.2 billion.
Investing for the future
Outlook
We continue to operate across the three largest PRT markets in the world, and over the next decade we anticipate a combined £1 trillion of new business to transact across these markets. This positions us to build
on our strong historical performance, and the guidance we have set of £50 - 65 billion of UK PRT over 2024 to 2028 reflects the scale of opportunity we are aiming to capture.
The UK PRT market has achieved a record number of transactions across the past two years, and c.£50 billion of UK volumes are projected in 2026,
exceeding the previous £49 billion peak recorded in 2023. Our pipeline going into 2026 is as strong as we have seen it over the second half of 2025. We
are well positioned to deliver against this demand across all segments of the market.
We continue to build on our unwavering commitment to sourcing and investing in assets that create meaningful environmental, economic and social benefits. These assets strengthen the long-term security we provide for our pension scheme members, whilst championing responsible investment that meets societal need and drives growth in the real economy. This demonstrates L&G's dedication to delivering positive outcomes not only today but for generations to come.
£200 million Life and Mind Building in Oxford
Oxford University Development, L&G's joint venture with Oxford University, opened the flagship Life and Mind Building this year. When construction began in 2021, the 25,000 sq.m. facility was the largest academic building in
the university's history and housed the Biology and Experimental Psychology departments, supporting more than 2,400 students, academics and researchers.
Setting a new benchmark for sustainable construction in higher education and life sciences, the building holds a BREEAM (Building Research Establishment Environmental Assessment Method) Excellent rating. The development incorporates low-carbon technologies
to help the building achieve net zero carbon in operation by 2030.
Business review continued
Asset Management
Highlights
Adjusted operating profit
£402m
Profit before tax attributable to equity holders
£72m
(2024: £211m)
Strategic report
With a refreshed leadership team in place, 2025 was a year in which we redefined our strategy and targets. We continue to execute with discipline, securing mandates across regions, broadening our distribution and enhancing our cross-asset capabilities.
Eric Adler
CEO, Asset Management
(2024: £401m)
A reversal of multi-year declines, marking 2025 as an inflection point.
Private Markets AUM
£75bn
(2024: £57bn)
Reflecting growth across private credit, real estate and infrastructure.
ANNR
£34m
(2024: £(5)m)
Highlighting a shift to significantly higher margins from our incoming flows.
Driven by adjusted operating profit, partially offset by the adverse impact of asset revaluations and the difference
between in-year versus expected returns on a number of Private Market assets, as well as costs associated with M&A and restructuring activities.
Cost income ratio
75%
(2024: 74%)
Up 1ppt from 2024 as we consciously invest in growth and scalability.
Fee rate
9.1bps
(2024: 8.8bps)
On track for our CME commitment of 10bps by 2028.
2025 key activities
Asset Management finished 2025 in a position of renewed strength, delivering a 5% increase in AUM to 1,197 billion.
We have begun to execute on our strategy, realise our untapped potential and meet our clients' evolving needs, repositioning the business for growth.
We saw strong expansion in our Private Markets AUM, growing to £75 billion and, reflecting the successful build-out of capabilities in private credit, residential mortgages and real estate strategies.
This growth also added revenue resilience, with a rise in the overall fee rate to 9.1bps, and efficiency actions drove cost control and fee-related earnings growth.
A strategic review of our Private Market assets, led by Eric, resulted in both the transfer of a small number of assets to the Corporate Investments unit and a comprehensive assessment of our remaining assets, in line with our normal practice, which itself culminated in a number of revaluations
and therefore a lower PBT.
We will continue to execute our strategy with discipline, using three strategic levers: build, partner and buy. To better meet our clients' needs, we plan to build where we have existing expertise; partner where we have an aligned purpose; and buy where we identify high-quality capabilities.
Build
Last year, we continued to capitalise on existing areas of expertise, with highlights including the continued success of our Private Markets Access Fund (PMAF).
Launched in July 2024, the fund hit
£2.5 billion in AUM, providing DC pension scheme members with greater access to private assets. DC revenue outweighed DB revenue for the first time this year, underscoring the continued structural shift in our industry.
Throughout 2025, we worked on refreshing our Exchange Traded Fund (ETF) strategy, with the launch of equity offerings such as our S&P 100 Equal Weight ETF and Global Quality Dividends ETF. We also added to our liquid-alternatives lineup, introducing our Market Neutral Commodities ETF.
Strategic report
Our index range was also further enhanced, with the introduction of infrastructure, bond and equity offerings.
The L&G Equity Index Fund provides broad exposure to large, mid and small-cap global equities, covering about 99% of the global investible equity opportunity.
The L&G Global Bond Multiverse Index Fund provides diversified exposure to global fixed income markets, beyond the well-known Global Aggregate index. The Future World Infrastructure fund aims to achieve a 50% initial reduction in carbon intensity and tilts to those companies exhibiting the strongest environmental credentials.
Other notable product launches included additions to L&G's active fixed-income funds. We launched our Global Income Bond and Global Special Situations Credit funds, as well as US Core Plus and Opportunistic Fixed Income funds.
Aligned with our broader growth ambitions, we remain committed to investing for the long term in assets and organisations that support real-world impacts with substantial economic benefit. Reflecting this, 2025 was a year of notable product activity within our Private Markets platform. Our Affordable Housing Fund held its second close at about
£500 million, while our Digital Infrastructure Fund held its first close at approximately
€600 million. We also held the final close on our NTR Clean Power Europe Fund at about
€600 million.
Looking ahead, we will continue to iterate our ETF platform, with a particular focus on active and liquid alternative products as well as listed share classes.
Buy
We will continue to consider acquisition of high-quality businesses that enhance our overall proposition, and support our ambition to expand both our capabilities
and geographical reach. By identifying such opportunities, we believe we put ourselves in a better position to create value for our clients, offering them an increasingly differentiated and diverse product lineup.
In 2025, we bought a 75% stake in Proprium Capital Partners, a global real estate private equity firm. The transaction reflects our desire to bolster our business with additional expertise, while also opening the potential to accelerate growth in markets across Europe and the Asia-Pacific region. Close
to 60% of Proprium's portfolio is located in Europe.
We carried out a landmark fund merger, as we worked with Federated Hermes to combine the Federated Hermes Property Unit Trust and the L&G Managed Property Fund. The transaction reflected two of the UK's most prominent asset managers working together in the best interest
Sustainable Growth
Launching the L&G Digital
Infrastructure Fund
In September, we announced the successful first close of the L&G Digital Infrastructure Fund (LDIF). An important component of our Private Markets platform, this close involved about
€600 million in commitments and associated co-investments. It showcased our ability to combine deep sector expertise and client relationships with the strength of our balance sheet to incubate solutions aligned to long-term macroeconomic trends.
The fund enables L&G to capitalise on the $2.5 trillion gap in funding that we believe is needed by 2030 to meet accelerating demand for digital
infrastructure. Targeting a gross Internal Rate of Return (IRR) of 15%, LDIF aims to invest in high-quality, productive and fast-growing businesses.
of investors.
Expanding our real estate capabilities also supports our goal of growing our Private Markets platform to £85 billion in AUM by 2028.
Partner
Reflecting our desire to better meet client needs, in 2025 we explored opportunities to partner with organisations with aligned purposes to our own.
In July, we announced our collaboration with Blackstone. Within this partnership, we will develop public-private credit solutions that combine Blackstone's leading private credit platform with L&G's best-in-class active fixed income capabilities. This is aimed at accelerating our ambitions to expand into highly attractive wealth
Outlook
We enter 2026 from a position of growing strength and strategic momentum, which is underpinned by rising fee margins, renewed growth in fee-related earnings and expanding exposure to higher-value private markets.
Demand for private and public credit, real assets and multi-asset solutions remains strong. Combined with our disciplined cost management and ability to offer solutions at scale, this environment positions our business to deliver improving adjusted operating profit.
We are committed to our growth ambitions, seeing an opportunity to raise our profile in international markets and grow our AUM in areas such as private markets, and we retain our overarching vision: to be a leading global investor, innovating to solve client challenges using the power of L&G.
and wholesale channels. The partnership will also complement our existing private credit capabilities to gain competitive advantage, enhance returns and support our growth ambitions.
Additionally, there is potential for further valuation uplifts at Pemberton as the platform continues to scale, introduce new funds, and deploy capital.
We also intend to build on our asset management partnership with Meiji Yasuda following our previous transaction announcement.
International business
As part of our commitment to offer a broader range of asset classes to a broader range of clients, we have sought to expand internationally, working towards our ambition to
become a truly global asset manager.
In 2025, the listing of the L&G All-Cap-All-Market Multifactor-Equity ETF on Italy's Borsa Italiana exchange marked an important milestone in these ambitions.
The fund aims to provide a 'one stop' core solution for investors seeking access to
a diversified investment equity strategy. It has previously listed in Germany and Switzerland, with a significant part of inflows driven by investors who choose to contribute via regular monthly savings, rather than one-off lump sums.
Additionally, we continue to seek expansion in North America and Asia. We expanded our investment teams in Asia in 2025, adding to our fixed income capabilities in the region. The move represented the continued globalisation of L&G's leading fixed income capabilities, with expert portfolio managers located in key geographies.
Business review continued
Retail
Strategic report
With scale in Workplace Savings, trusted Retirement propositions and technology- enabled efficiencies in Protection,
Retail is well placed to support customers throughout their lifetimes and deliver enhanced returns to our shareholders.
Laura Mason
CEO, Retail
Highlights
Adjusted operating profit
£447m
(2024: £430m)
Driven by releases from the stock of future profit and investment margin.
Workplace Savings net flows1
£6.2bn
(2024: £6.0bn)
Demonstrating continued momentum.
Individual Annuity sales
£1,753m
(2024: £2,118m)
Supported by sustained customer demand.
Our customers2
c.12.1m
(2024: 12.3m)
Profit before tax attributable to equity holders
£374m
(2024: £243m)
Driven by adjusted operating profit, partially offset by the impact of modelling and assumption changes.
Protection new business premiums
£269m
(2024: £263m)
From enhanced customer engagement.
NPS3
+55
(2024: +50)
Reflecting our customer service excellence.
2025 key activities
The Retail4 business delivered strong performance over the year. We have momentum in Workplace Savings, with net flows of £6.2 billion, demonstrating the trust placed in us by employers and members. Individual Annuity sales reached
£1,753 million, supported by sustained customer demand and our competitive at retirement proposition. Our Protection business generated £269 million of
new business premiums, underpinned by enhanced customer engagement and effective distribution.
We took the opportunity to explain our Retail business in greater depth in our Retail Deep Dive, helping to strengthen market understanding of our capabilities, strategy, and long-term growth potential.
Focusing on our customers
Our Retail businesses support c.12.1 million customers' and we are proud that we handled over 20 million interactions in 2025, reflecting both scale and trust. Service quality remains consistently high, with an NPS of +55 and an Institute of Customer Service (ICS) score of 83.7. This is further demonstrated by recognition of our frontline teams with the 'Customer Service Team of the Year' Gold award at the CCA Global Excellence Awards 2025.
Our Retail businesses are there to support customers throughout their lifetimes. Our Workplace platform helps members build savings from the time of their first job through to retirement, whilst Protection delivers long-term peace of mind to our customers and their loved ones.
Our Retirement businesses equip customers to make confident choices in their later life with targeted support and flexible options.
Continuous improvement in how we serve customers is critical, and therefore in 2025 we announced our collaboration with Microsoft to digitalise our customer support platform. Customer interactions with colleagues will be enhanced by AI-enabled agentic assistance, and we are reducing complexity for our employees by unifying our platforms so customer queries can be resolved faster and more consistently.
Figures include Workplace DC and Retail Savings net flows.
Customers of our Retail division, including individual customers and employees covered under employer Group Protection and Workplace schemes. The reduction in-year is due to improved customer reporting, which removed duplicate records rather than reflecting a change in underlying customer number.
Calculated as an average of our core businesses weighted by transaction volumes.
Retail comprises Retail Retirement and Insurance reporting segments (see Note 2 on page 155 of the financial statements).
Strategic report
Our business areas
Workplace Savings
Our Workplace Savings business helps members save for their retirement through an end-to-end platform, available for customers at the touch of their finger via the L&G app. In 2025, the app became
the UK's highest-rated workplace pension app and logged a new high of almost
1.5 million visits in one month in July,
and was enhanced with more personalised content and features during the year.
In 2025, we sharpened focus by consolidating our DC and Workplace Savings operations, which span Retail and Asset Management businesses, under our new CEO, Paula Llewellyn. We are the UK's largest DC provider, managing over £200 billion
in DC assets across the Group, with our commercial Mastertrust the largest in the UK, with over £40 billion of assets. Retail continue to partner with some of the UK's largest employers, who are long-standing clients, and we are proud of a 99% scheme retention record.
We joined with 19 other major finance firms to launch the UK Retail Investment Campaign, an industry-wide initiative to raise public awareness of investing and its role in long-term financial wellbeing. Our Workplace Savings business will champion this, as we want to foster a culture of appropriate, diversified investment by encouraging our customers to engage
with their workplace pension and consider their retirement options.
We also put in place processes for DB scheme trustees and sponsors to transfer surplus funds into DC arrangements, as we respond to a market in which around three quarters of DB schemes are now in surplus. The framework will allow employers to either enhance member outcomes in DC
or offset ongoing contribution costs.
Retirement
Our Retail Annuities business helps customers convert pension savings into a dependable income, offering lifetime and fixed term options to meet different needs. We are the UK's largest open market annuity provider.
Over the year, we made it simpler and faster to secure a guaranteed income. We launched L&G Apply, a digital application journey for advisers, which could cut processing times by up to 14 days, improving accuracy and freeing advisors to focus on clients.
Recently we announced a new distribution partnership with HSBC UK, giving customers direct access to L&G annuities through HSBC's website, with referral to advice where needed.
Sharper Focus
Confident decisions in later life: L&G's Guided Retirement Planner
This year, L&G's digital Guided Retirement Planner has been used by more than 70,000 members aged
55+. The Planner delivers personalised content by identifying each member's priorities and providing clear, actionable insights. It breaks retirement planning into simple steps and has been designed to be dynamic, allowing members to evolve their plans at their own pace
and around key life moments.
We are seeing this engagement turn to action, with one in five members
choosing options such as consolidation, drawdown or an annuity purchase.
Additionally, one third of planner users are pre-retirement, boosting their readiness for retirement.
Our Lifetime Mortgages business helps homeowners unlock a portion of their property wealth while remaining in their homes. This year marked 10 years since the establishment of L&G's Home Finance business, with over 100,000 customers releasing more than £6.5 billion of equity from properties since inception.
We published new analysis this year highlighting a clear shift in how customers use equity release, with a majority of people now prioritising quality-of-life goals such
as home upgrades and intergenerational gifting, with debt repayments in decline.
Protection
Retail Protection helps our customers protect their families and finances through life insurance, critical illness and income protection products. Our commitment to quality and consistency was recognised with Moneyfacts Best Term Assurance Provider for the sixth year running.
Outlook
Retail will accelerate and expand our leading UK DC & Retirement platform, supporting customers seamlessly through accumulation, retirement and decumulation. We intend to seize the structural DB to DC shift, targeting sustained net flows as we progress toward doubling Workplace assets
by 2034.
We will build on our established presence in Individual Annuities to capture the c.£20 billion market opportunity by 2034, offering our customers blended income solutions that combine flexibility with guaranteed income. We will grow our Protection businesses through product innovation
and increased digitalisation, facilitated by our proven customer service track record.
This year, we made it easier than ever to submit a claim, with a new customer-facing Claims Portal for third-party claimants.
Since the launch of our digital offering in 2023, average claim timelines have reduced by nearly two weeks, with more than 70% of customers now choosing to claim online.
Group Protection helps employers look after their people with life insurance, income protection and critical illness benefits. This year, we launched Spark, our health and wellbeing app, giving employees easy access to preventative tools, everyday health resources and guided pathways to specialist help. Our commitment to excellence was recognised with the Cover Excellence 'Outstanding Group Protection Provider' award for a second year and the Health
and Protection 'Best Group Protection Provider' award.
Mortgage Club connects advisors with lenders and providers, helping customers secure the right mortgage and protection alongside it. Celebrating its 30-year milestone and a record £133 billion of lending this year, the Club continues to champion customer outcomes at one of life's most important financial decisions.
In February 2026, we transferred ownership of our US protection business to Meiji Yasuda, with policyholders receiving seamless continuity of cover and service.
Sustainability
In 2025, L&G has built on our refreshed purpose -'Investing for the long term. Our futures depend on it' - as we navigated ongoing geopolitical and societal change. This purpose has guided how we prioritised, deployed capital and managed risk, helping us remain a resilient and responsible
long-term investor.
Strategic report
During the year, we continued to embed our purpose firmly across the business. It
informed how we responded to demographic shifts, demand for productive finance, technological change and rising expectations around responsible business conduct - the structural trends that continued to shape our operating environment in 2025.
To ensure our commercial strategy and sustainability ambitions remained aligned, we undertook a further assessment of our sustainability-related impacts, risks and opportunities (IRO) outlined in 2023.
This review highlighted the issues most material to L&G and our stakeholders, particularly in areas such as climate transition, governance, and the role of long-term capital in supporting inclusive economic growth. Insights from this work will be used to support the development of a revised Group sustainability strategy.
Throughout 2025, we focused on refining our long-term priorities, strengthening how we measure progress and further integrating sustainability considerations into business and investment decisions. The updated strategy is expected to be reviewed and approved by the Group Management Committee (GMC) in 2026.
Pictured below: As part of the Nature Unlocked program, proudly supported by L&G, the Group Procurement team headed to Kew Wakehurst for a day of nature, teamwork and pollinator-friendly trees.
Legal & General Group Plc Annual report and accounts 2025 24
Our sustainability KPIs
Climate
Operational footprint (scope 1 and 2 (location))
19,921tCO2e1
(2024: 27,418 tCO2e)
Measures the greenhouse gases (GHG) associated with our direct operations. Scope 1 emissions are direct GHG emissions occurring from sources owned or controlled by the Company. Scope 2 emissions are indirect GHG emissions from consumption of purchased electricity, heat or steam.
Investment portfolio economic GHG emission intensity
51 tCO2e/£m
(2024: 50 tCO2e/£m)
This is made up of our ownership share of the emissions related to the assets
we invest in within the Group proprietary asset portfolio. It includes bonds, equities and investment property, but excludes cash, derivatives and any assets already covered in our operational footprint.
It is measured per unit of investment.
% AUM aligned with the Climate Impact Pledge (CIP)
80%
(2024: 82%)
The CIP covers 56% of corporate securities by value that Asset Management invests in on behalf of clients and 80% of carbon emissions attributable to our corporate and equity holdings as of 31 December 2025.
Other
Employee engagement index
79%
(2024: 80% )
Measures a range of employee sentiments about working at L&G, including satisfaction, pride,
recommendation and intent to stay.
Median gender pay gap
30.2%
(2024: 28%)
Measures the difference between median pay per hour for women and men, expressed as a percentage of the latter. This KPI relates to UK-based employees only.
Senior management roles held by women
40.3%
(2024: 38.5%)
Measures the percentage of senior management-grade roles held by women. We set the objective of 40%
of Board and leadership positions being held by women by 31 December 2025.
More information about our environmental KPIs and reporting
FCA Listing Rule 6.6.6R(8)
A summary of our climate-related financial disclosures, consistent with the recommendations of the Task Force
on Climate-related Financial Disclosures (TCFD), can be found on page 29 of this report, with additional information available in our separate Climate and nature report.
Transition plan: response to FCA requirement 2021/61 9.8.6FG
Our 2026 Climate and nature transition plan is due to be published in March this year. This is the first update since our initial transition plan was presented to,
and approved by, the 2023 Annual General Meeting of our shareholders. The plan sets why climate and nature matter to L&G, and the actions that we take to deliver on our net zero by 2050 commitments. This is
in line with the UK Government's Climate Change Act 2008 (2050 Target
Amendment) Order 2019.
Companies Act 2006 and SECR
In building our footprint, we have reported on the emission sources for January to December 2025 required under the Companies Act 2006 Strategic Report and Directors' report regulations 2013 and have followed the requirements of the Streamlined Energy and Carbon Reporting (SECR) framework.
In line with the Greenhouse Gas protocol, our scope 1 and 2 is the annual carbon emissions of the whole Group. We apply the operational control approach, i.e. we include all operations which we directly control, such as the energy from our core occupied offices, landlord activities, as well as the construction of new homes within our housing businesses and joint ventures.
Environmental system
We manage our business in accordance with ISO 14001 certification.
For further information on our GHG emissions and steps taken to reduce them, please see our separate 2025 Climate and nature report.
Discover more online
group.legalandgeneral.com/Climatereport2025
For further information on our employee engagement index, representation data and pay gap, please see pages 34 and 35 of this report and our Social impact report.
Discover more online
group.legalandgeneral.com/Socialimpactreport2025
1. Carbon dioxide (CO2) is the most significant contributor to global anthropogenic GHG emissions, which also includes other gases such as methane and nitrous oxide. The equivalent warming impact of non-CO2GHG emissions are measured as tonnes of CO2equivalent (tCO2e).
Our Responsible Business
Our approach to Responsible Business stems from our purpose and is defined by our commercial objectives and the economic value we create.
The ways in which our strategy, refreshed purpose, sustainability focus areas and material IROs interact are shown below.
Our purpose
Investing for the long term. Our futures depend on it.
Sustainable Growth
Sharper Focus
Enhanced Returns
Commercial
strategy Delivered through our three businesses
Institutional Retirement
Asset Management
Retail
Sustainability strategy
Long-term financial wellbeing
Better communities in which to live
and work
Game-changing environmental solutions
Engaging customers and employees with our impact
Running our business in a responsible way
Material issues
We have assessed the most significant impacts, risks and opportunities for the Group to tackle in its sustainability efforts.
These material issues are at the interface of our purpose, our commercial strategy and our sustainability approach.
Reporting our progress
We make sustainability-related disclosures across four main publications. We recommend that readers who want to understand our approach to the whole range of sustainability issues - environmental, social and governance (ESG) - read these publications together.
In this section of our Annual report and accounts, we report information that is required under regulation and legislation. We also outline our approach to sustainable business, comment on how our commercial activities have contributed to positive environmental and social outcomes and describe our governance practices; see pages 24 to 35.
Discover more online
group.legalandgeneral.com/en/reporting-hub/Sustainability
Our Climate and nature report, prepared in line with the recommendations of the TCFD and as early adopters of TNFD, describes our climate and nature strategy, scenario planning, risk management, metrics and governance. This report contains detailed data on our carbon emissions and other environmental metrics.
Our Social impact report describes the commercial and not-for-profit actions we've taken in the reporting year in pursuit of our sustainability areas of focus. It also contains people-related disclosures, including workforce data, diversity and inclusion data and targets, and pay gap information.
Our Modern slavery statement, prepared to meet the requirements of the 2015 Modern Slavery Act, describes the steps we have taken to identify the risks, and remediate any instances, of modern slavery and human rights violations.
It covers our strategy, risk processes, governance and key performance indicators relating to this issue in our operations and supply chain.
Our climate and nature transition plan sets out how we continue to deliver against our transition ambitions, promoting a 1.5ºC Paris aligned transition, while investing for the long term. In our 2026 plan, the first update since our 2023 publication, we highlight our progress and our evolving approach to navigating this complex landscape.
Our sustainability areas of focus
Our sustainability areas of focus, implemented in 2022, reflected where we had the greatest potential to create
social, economic and environmental impact while seeking to generate returns for our customers, clients and shareholders.
A new sustainability strategy is currently under development; however, the existing framework remained in effect throughout 2025. A brief overview of each focus area is provided below, with additional detail available in our 2025 Sustainability reports.
Long-term financial wellbeing
We want members of society to be financially confident and resilient over the course of a lifetime, as this is central to us realising our purpose. As a leading insurance and retirement provider, we can positively influence people's financial wellbeing through our products, services and tools. We also offer additional support and not-for-profit initiatives to help customers manage difficult times. Alongside this, we invest capital to create long-term economic value. More detail is available in the long-term financial wellbeing section of our Social impact report.
Better communities
As a long-term investor in towns and cities, we have an opportunity to use capital in ways which aim to benefit society while delivering on commercial and client priorities. We developed a social impact model in 2022 to guide strategies across funds, assets, subsidiaries and partnerships. Built on impact-management principles, it adapts to different asset types and stages of the investment lifecycle. The toolkit factors in local needs, helps align shared goals with community partners, and measures impact through KPIs focused on real-world outcomes. In 2025, we continued to put this model into practice and social impact strategies now cover 75% of our private markets portfolio (up 25% from the previous year). The better communities in which to live and work section of the Social impact report gives more detail on this.
Climate, environment and nature
The need to reduce GHG emissions remains urgent to limit the most severe impacts of climate change. Awareness of the urgency to protect nature has also intensified. It is core to our purpose 'Investing for the long term. Our futures depend on it'. Ultimately, climate change and the twinned crisis of nature loss, require long-term commitments as well as action today, and as a long-term business, we are committed to action.
We are setting out our forward-looking strategy in our updated Climate and nature transition plan, published this year for the first update since its first iteration in 2023. We continue to give a full account of our performance in our annual Climate and nature report.
Our approach to climate change and nature loss is built across our three key areas of activity:
Asset owner: Reducing the intensity of our carbon emissions and investing in the transition where it creates long-term value.
Asset manager: Contributing to a net zero-aligned transition as an asset manager with
£1.2 trillion of AUM. Driving greater action to address financially material climate and nature risks in the real economy consistent with our fiduciary duty.
Our operations: Decarbonising our operations to improve the energy efficiency of our occupied offices and the real estate that we actively manage.
Engaging customers, clients and employees
Our impact on society is central to our role as a market leader in life insurance, pensions and retirement income. Through our Retail business we meet the needs
of c.12.1 million people. We manage
£1.2 trillion of client assets and we employ over c.10,500 staff worldwide. With customers and employees from diverse backgrounds and needs, our products directly shape lives. In our Social impact report, we describe the various steps we take to engage customers, clients, and employees in our sustainability agenda, whilst adhering to being a responsible business and employer.
Responsible business
Our commercial success relies on a resilient economic system and responsible corporate behaviour. L&G's far-reaching impact makes strong business ethics essential. We commit to operating responsibly and holding ourselves and our employees to high standards of conduct. Our culture helps attract and retain people with the skills and motivation to deliver for stakeholders. The responsible business section of the Social impact report outlines how we manage the business to uphold high ethical standards.
Anti-bribery and corruption
We are firmly committed to maintaining the highest standards of business ethics, honesty, openness, and accountability. As part of this commitment, the offer or acceptance of bribes is unacceptable behaviour for any L&G employee. While our approach is informed
by the United Kingdom's Bribery Act, our expectations on employee behaviour in this matter are global.
We strive to play our part in making sure our customers, clients and shareholders are protected from the impact of financial crime such as bribery, corruption, terrorist financing, money laundering and fraud.
Our Financial crime risk policy applies across the Group and mandates that controls are put in place to prevent and detect such activity. Controls include an annual risk assessment; regular training; due diligence measures on customers, investments and our supply chain; reporting of suspicions of financial crime to a dedicated Financial Crime Risk team; and the control and approval of riskier activity such as the giving and receiving of gifts and hospitality, political and charitable donations, and corporate sponsorship. Training that covers financial crime risk and employee responsibilities is mandatory for all employees and is regularly reviewed to ensure it is up to date and appropriate.
Legal & General Group Plc Annual report and accounts 2025 27
Our sustainability areas of focus continued
Modern slavery and human rights
As a FTSE-listed organisation that operates in multiple jurisdictions, we understand our duty to uphold human rights in our operation and value chain. We have zero tolerance of labour abuses and we commit to maintaining high standards when it comes to the protection of human rights - including a commitment to play our part in helping
to tackle this serious societal issue.
Our main annual disclosure on human rights is our Modern slavery statement, which covers, among other matters, how we assess modern slavery and human rights risk in our operation and value chain; our due diligence; and our policies and practices. Our human rights policy sets out our approach to managing human rights risk in our investments. It is available on our website. Our approach to this issue is based on standards set by the United Nations, the International Labour Organization, the Gangmasters and Labour Abuse Authority, the Living Wage Foundation and the Ethical Trading Initiative.
In 2025, we undertook numerous actions to prevent and remediate modern slavery, including training employees, undertaking in-depth risk assessments, and carrying out audits across our operational and investment sites. Please refer to our human rights policy and our 2025 Modern slavery statement for further information.
Discover more online group.legalandgeneral.com/ Modernslaverystatement2025
Our supply chain
One Piccadilly Gardens
Across our real estate portfolio, we are implementing measures to remove gas in line with our aim of phasing out all landlord gas by 2030 for landlord-controlled areas. This includes One Piccadilly Gardens, Manchester in the Managed Property Fund, where we fully electrified the building
by removing an obsolete gas boiler and replacing it with all-electric technology. Removing gas and installing a combination of the air source and water source heat pumps enabled us to deliver significant carbon savings and other sustainability-related improvements, following completion in 2025. This includes:
Projected savings of 110 tCO2e annually.
Improving the building EPC rating from D to B, whilst maintaining a fully operational building for the existing tenants.
Increasing the Managed Property Fund's utilisation of renewable energy sources.
Although the cost was higher for the heat pump than for a like-for-like replacement of the gas boiler, the forecasted carbon savings and appeal in the market for all electric buildings enabled the Managed Property Fund to hit its annual energy reduction target from this project.
Our global supply chain means our purchasing decisions have wide-reaching impacts, so we balance financial and quality considerations with environmental and social sustainability. By the end of 2026, 80% of our suppliers, measured
by spend, will have set a science-based carbon reduction target1. L&G and
our subsidiaries procure approximately
£978 million of goods and services annually from c.2,000 suppliers globally, contributing to our operational carbon footprint and social impact. Our procurement
framework supports fair and effective supplier engagement, manages risk and delivers value for stakeholders. Contracts set clear commercial and legal expectations, including regulatory compliance, service continuity and data security.
In 2025, we launched a refreshed Supplier Code of Conduct (the Code) outlining our expectations across eight areas: business conduct, inclusion and wellbeing, human rights and modern slavery, environmental management, digital accessibility, prompt payment, real living wage and social value. We also introduced a new supplier assessment within our due-diligence
onboarding process for managed suppliers. Aligned with the Code, it improves transparency enabling earlier identification of potential risks and provides deeper insight into sustainability practices.
We continued embedding our sustainability strategy, with a focus on modern slavery, real living wage, carbon emissions and science-based reduction targets. Sustainability is also informing sourcing decisions, including weighted criteria in our process to become a preferred supplier to L&G.
Under sections 414CA and 414CB of the Companies Act 2006, we are required to include in our Strategic report a non-financial and sustainability information statement. This section of the Strategic report (pages 24 to 35) provides the following information required to be included in the non-financial and sustainability information statement:
environmental matters
our employees
social matters
human rights
anti-corruption and bribery
In addition, other required information can be found on the following pages:
business model (page 4)
principal risks and how they are managed (pages 42 to 46)
non-financial key performance indicators (page 25)
Climate-related financial disclosures align to the TCFD requirements (page 29). Details of relevant policies, due diligence processes and the outcome of these policies and processes are contained throughout the Strategic report.
1. We define a target as "science-based" when it meets the Science Based Targets initiative (SBTi) criteria. Specifically, it must be a mid-term emissions-reduction target with a level of ambition consistent with the global net zero trajectory.
Climate
Summary disclosure against TCFD recommendations
We have continued to disclose in line with the TCFD recommendations. We have complied with the FCA Listing Rule 6.6.6R(8) and have considered relevant and material elements of the recommended TCFD disclosures.
Climate and nature report
Our 2025 Climate and nature report is available on our Group website.
Discover more online
group.legalandgeneral.com/Climatereport2025
The table below gives a summary of our material disclosures and directs readers to the relevant pages in this report, and to our Climate and nature report for supplementary
information. This additional report provides the detail of our approach to addressing climate change and nature loss, as we do with our disclosures on risk, tax and social issues.
In response to FCA guidance 9.8.6FG, we have also produced a 2026 Climate and nature transition plan. The first update since initial publication in April 2023. This is scheduled
to be put to an advisory vote at our Annual General Meeting on 21 May 2026. Our plan sets out our role in aligning our business with a net zero outcome by 2050, consistent with the UK Government's targets.
We remain ahead of our 2030 decarbonisation target trajectory and have made good progress to date on our overall ambition. We will continue to promote a
1.5ºC Paris-aligned transition as we believe that failure to do so will increase economic costs that will be needed to manage the increasing and material systemic risks. The need to reduce GHG emissions remains urgent to limit the most severe impacts of climate change. Global progress has been too slow to place the world firmly on a pathway consistent with limiting warming to 1.5ºC1, the threshold identified by climate science to minimise risks. While scientific pathways indicate that 1.5ºC remains technically possible with accelerated actions, delays have heightened uncertainty and increased the scale of effort now required across economies and financial systems.
Global Warming of 1.5 ºC
Strategy
Climate-related risks
We have integrated climate risk management into our existing risk and governance framework and
Additional
information is provided on
and opportunities
are well placed to play a role in the decarbonisation of the economy. Our climate and nature-related
opportunities and risks and the time periods to which they are assessed are described on page 30.
pages 10 to 20
and 42 to 48 (scenarios) of
Impact on our businesses, strategy and financial
Based on our scenario analysis, our business model is not expected to be significantly disrupted by climate change, however it does impact how we execute our strategy. We have built a three-pillar approach to
planning
address climate change in our role as as an Asset owner, an Asset Manager and in Our Operations. Our
proprietary model on climate change is used to quantify the potential impacts of climate change on our
our Climate and nature report
portfolio. Page 31 shows our key commitments and interim milestones in each of these roles and
descriptions of our climate action statements.
Resilience based on
Our climate scenario analysis helps us to identify and quantify the sources and magnitude of potential
scenarios, including a 2°C
climate-related risks that will emerge as the world transitions to a low-carbon economy. We describe our
or lower scenario
resilience to these scenarios, including a 2°C or lower scenario, on page 32 and climate considerations are
also highlighted in the Group Board viability statement on page 47.
Governance
The Board's role
The Board is accountable for the long-term stewardship of the Group. It has delegated oversight of the
Additional
information is provided on
in oversight
management of climate-related risks to the Group Environment Committee (GEC). We describe the
governance structure in more detail on pages 31.
Management's role
We have appointed a Group Climate Director, who chairs the GEC and we set out the senior managers'
pages 21 to 23
of our Climate
and nature report
in assessing risks and opportunities
responsibilities through the committees and overall risk and governance framework on pages 31 and 32. The link between executive remuneration and progress against climate commitments is set out in our Annual report on remuneration on pages 96 to 113.
Risk
Processes for identifying
Climate risk management has been integrated into our risk and governance framework. Our approach
management
and assessing
is described on pages 32. Scenario analysis is a key tool to assess the potential impacts from climate risk,
Additional
information is provided on
climate-related risks
referenced above and described on page 32.
Processes for managing
We deploy a range of management actions to manage our exposure to climate-related risks associated
pages 24 to 29 of our Climate and nature report
climate-related risks
with our investments and operations, to meet our risk management objectives, including: an established
framework for climate commitments; application of exclusions and environment-related escalation; physical risk controls; review of our existing tolerance framework to incorporate climate considerations; and active engagement.
How we integrate these
The Group's climate governance has been designed to ensure that the management of the financial risks
risks into our overall
from climate change are integrated across the whole governance system and embedded into the existing
risk management
risk management framework.
Metrics
Internal metrics
Our metrics support our commitment to align with net zero by 2050 and our key sustainability performance
and targets
indicators for managing the risks and opportunities from climate change are disclosed on page 25. We
Additional
focus on our investment portfolio economic carbon intensity, implied portfolio temperature alignment
information is
provided on
and operational carbon footprint. We also measure our engagement with investee companies.
pages 31 to 41
Greenhouse
Our scope 1 and 2 (location) operational emissions were 19,921 tCO2e. Our scope 3 non-investment
of our Climate
and nature report
gas emissions
emissions (fuel and energy-related activities, waste, business travel, homeworking and serviced offices) were 14,399 tCO2e. Our scope 3 downstream leased assets were 0.3 million tCO2e. Our scope 3 investment emissions were 5.5 million tCO2e. Additional metrics are disclosed on page 33.
Targets
We have set our climate targets across our three-pillar climate strategy to align with the 'Paris' objective.
Our key climate commitments and interim milestones are on page 31. Our 2026 Climate and nature
transition plan, due to be issued in March 2026, is also available online.
Climate continued
Climate and nature-related opportunities and risks
Short, medium and long term
Our short-term horizon looks at a three-year period.
Our medium-term horizon looks forward up to 10 years.
Our long-term horizon looks
at the time horizon up to 2050.
Opportunities
While there are manifestly risks from climate change, the transition to net zero and the reallocation of capital to nature-positive outcomes, also creates opportunities. The table highlights material climate and nature-related opportunities and risks that our businesses have identified.
The impacts of these challenges on our businesses differ. They are also likely to shift over time, and we have assessed levels of impact as well as a time horizon to try to illustrate this.
While the risks from climate change and nature loss are increasingly clear, the transition to net zero, and the reallocation of capital to nature-positive outcomes, also creates opportunities. This page highlights the material climate and nature-related opportunities and risks that our businesses have identified.
High impact Medium impactLow impact
Strategic pillar Potential opportunities Business area most impacted
Horizon term Short Med Long
Asset ownerDirecting our investments to support a low-carbon transition while investing in corporate, infrastructure and real estate climate and nature-based solutions.
Asset manager
Attracting and retaining clients by supporting them to decarbonise their investment portfolios, for example through net zero-aligned investment products and the provision of data and analytical tools.
Managing funds that provide clients with access to financing opportunities in transition technologies and infrastructure and nature-positive outcomes.
Our operations
Enhanced returns from investing in homes and commercial properties by enabling them to operate with net zero carbon
emissions and helping to protect and restore nature.
Increasing our market differentiation through investment in low-carbon real estate, including reduced embodied carbon.
Protecting our returns by developing real assets with high levels of climate resilience.
Institutional Retirement Asset Management Retail
Asset Management
Institutional Retirement Asset Management
Retail
Risks
Strategic pillar Potential risks Business area most impacted
Horizon term Short Med Long
Asset ownerInvestments in sectors or companies which are adversely exposed to a transitioning economy lose value or are
downgraded, and investments prove ineffective resulting in loss.
Disruptive technology, including AI, impacting the value of investments.
Increased frequency and severity of extreme weather events or increased nature loss, impacting on the value of physical assets or the value of companies with high exposures to these risks.
Asset manager
Loss of market share if investment solutions are perceived as not meeting evolving client needs.
A breach of evolving legislative or regulatory requirements may expose us to litigation or regulatory sanction and damage our brand.
Reputational risk from not meeting our own commitments, or if activities across the Group are not aligned.
Our operations
High delivery costs of low-carbon or nature-positive solutions for residential and commercial properties impacting viability.
High delivery costs due to changing climate and nature-related disruptions to our supply chain, leading to increased costs and material shortages.
Property values fall due to increased risk of extreme weather impacts, higher insurance costs or poor energy efficiency.
Not having the right skills for the future, or weakness in processes or systems, leads to customer detriment or reputational damage.
Institutional Retirement Asset Management
Retail
Institutional Retirement Asset Management Retail
Institutional Retirement Asset Management Retail
Our approach to climate change and our targets
Asset ownerWe have incorporated climate and nature considerations into how we invest our £108.3 billion of proprietary assets1.
Asset managerContributing to a net zero aligned transition as an asset manager with £1.2 trillion of AUM
Our operationsWe are changing the way we operate to decarbonise
our business.
We are doing this through…
Reducing the intensity of our financed emissions.
Investing in the transition where it creates long term value.
Net zero
asset portfolio aligned with a 1.5°C 'Paris' objective, with a 50% reduction in GHG emission intensity by 2030 from a 2019 base year.
Work with industry and clients to develop the approach to climate investing and net zero targets.
Drive greater action to address financially material climate and nature risks in the real economy consistent with our fiduciary duty.
Strategic commitments
100%
of AUM in alignment with net zero by 2050, working in partnership with clients to reach net zero alignment across 70% of AUM by 20302.
Decarbonising our operations.
Decarbonising our supply chain
Enhancing the efficiency of new homes brought to the market and engaging with occupiers of real estate assets.
Net zero
scope 1 and 2 GHG emissions by 2050, with an absolute reduction of 42% by 2030 from our 2021 science-based target base year3.
Governance of environmental risks
The Board is ultimately accountable for the long-term stewardship of the Group.
Responding to climate change and addressing nature loss, and the opportunities and risks associated with these issues, are of key significance to the Board.The Board has collective responsibility for the oversight of environmental matters, with Nilufer Kheraj, OBE, a Non-Executive Director on the Board, having a responsibility to give specific focus
to climate change and nature loss in her role. This ensures climate and nature-related risks and opportunities across the Group are raised on all relevant topics discussed by the Board.
The Board has delegated oversight of the management of environmental risks to the Group Environment Committee (GEC), through the GMC, Group Risk
Committee and Executive Risk Committee. The GEC is responsible for providing strategic direction on the Group's environmental response, including to climate change, with reference to the Group's broader sustainability strategy.
Our Group Climate Director holds responsibility for coordinating the Group's response to climate change and incorporating nature-related opportunities and risks. The role has the senior manager responsibility of ensuring an appropriate strategy is in place to understand, identify, measure, monitor, control and report the opportunities and risks from climate change in line with the risk strategy and risk appetite parameters set by the Board. The Group Climate Director also supports management in the development of both strategic opportunities, and the appropriate processes to monitor and report exposures to the risks arising from climate change.
The GEC met five times in 2025 in accordance with its annual plan. The GEC is chaired by the Group Climate Director with membership including: the Group CFO, Group CRO, Institutional Retirement CEO, Retail CEO and Asset Management Chief Investment Officer (CIO). The level of seniority in its membership helps ensure that there is a single forum to provide oversight on our response to environmental issues, ensures consistency, encourages debate and demonstrates the importance we place
on our response to these issues.
We define proprietary assets as total investments to which shareholders are directly exposed, minus derivative assets, loans and cash and cash equivalents.
Excludes sovereigns and derivative securities until such time as agreed methodologies exist.
In line with SBTi guidance our scope 1 & 2 target baseline is annually reviewed to reflect business & portfolio changes.
Climate continued
Climate risk management
Our risk management approach to the financial risks arising from climate change and nature loss reflects our climate strategy, the materiality of the exposures we have.
When assessing materiality, we consider both how the Group is affected by climate change, as well as the Group's own impact on the climate.
The risks arising from climate change to which we are exposed, fall into three broad categories: transition risks, physical risks, and corporate risks. The risks from climate change and nature loss are far-reaching, uncertain and broad-ranging. As much of our balance sheet is based on assumptions and expectations of future experience, risks can materialise through both actual change in experienced profits or losses, as well as changes in those future expectations.
Climate risk management is integrated into our existing risk and governance framework (see pages 41 to 46), and we have carried out a detailed assessment of how we could expect climate risk to emerge across our business model. Given our business model (see page 4), we assess the most material financial risks from the potential impact
of climate change on the value and credit rating of our assets.
Climate transition risks are primarily measured in relation to our carbon exposures. We are committed to reducing our carbon footprint of both our operations (scope 1 and 2), and of our investment portfolio GHG emissions intensity to
align with the 'Paris' objective. We deploy a range of management actions to control our exposures to climate-related risks associated with our investments and operations, to meet our risk management objectives, including: our established framework of climate commitments; application of exclusions and environment-related escalation; physical risks controls; review of our existing tolerance framework to incorporate climate considerations; and active engagement with investees.
Climate scenario analysis
Our scenario analysis enables us to assess how the impacts from climate change may emerge under a range of climate scenarios and time horizons. Our scenario analysis focuses on the financial risks from climate change, both physical and transitional risks, across our major risk categories of credit, longevity and market risk. We leverage our in house scenario modelling capabilities across diverse use cases, applying tailored toolkits where appropriate, and partnering with external climate risk specialists to enhance and expand our modelling expertise.
We have developed four scenarios:
High emissions - failure to act means emissions continue to grow at historical rates.
Below 2°C - immediate ambitious policy and investment actions to address climate change.
Net zero - immediate, highly ambitious actions to address climate change reduces emissions to net zero by 2050.
Delayed Below 2°C ('Delayed') - policy and investment action to limit warming to well-below 2°C is delayed to 2035
resulting in much more disruptive change.
A further benchmark "Inaction" scenario, where governments do not implement further climate policies but low carbon technology is built where it is cheaper than the alternatives, is used as comparison
to provide portfolio scenario results for the three pathways which are based on transition risks (Below 2°C, net zero and Delayed). These three scenarios are also
considered in valuation uncertainty analysis.
We do not calculate aggregate portfolio impacts on the High emissions or Inaction scenarios. We expect most of the associated impact to be driven by physical risks, which tend to be highly localised and manifest further into the future and are hence
more uncertain.
However, more broadly on physical risks, our modelling capabilities allow us to assess how acute events, such as floods and storms in the High emissions scenario, may affect asset values, operations, and long-term resilience, as considered in our investment due diligence and valuation uncertainty analysis.
As part of our assessment of viability, we include the impact of the Group's net zero ambitions, and the Group's ability to adapt its operations and business strategy to address the financial risks arising from both the physical risk of climate change and the transition to a low-carbon economy. The Board regularly considers the potential financial and reputational impact of the Group's principal risks, which includes failure to respond to the emerging threats from climate change for our investment portfolios and wider businesses.
The nature of our business means we have identified four broad mitigations to our transition risk exposure.
Our exposure is largely through financial assets, many of which are listed, so we have significant flexibility to adapt by trading to the desired carbon position. This is the expected outcome should active engagement fail.
We hold mainly investment grade bonds, which are matched against liabilities such that we are not materially exposed to price risk compared to investors who regularly trade their bond portfolios
or those holding greater exposures to equities.
We continue to carefully manage our balance sheet and our credit portfolio. We continuously analyse our credit exposures and, where appropriate, seek out opportunities to improve credit quality at attractive pricing levels. We have incorporated climate considerations within our credit and market risk management and expect these to develop over time. We manage our transition risk from climate change through setting our portfolio decarbonisation targets. These pre-emptive management actions are expected to reduce the credit risk of the portfolio and are expected to reduce the impact of the credit stresses presented in these scenarios. Our decarbonisation strategy also covers
our equity portfolio.
The balance sheet is well diversified across different sectors of the economy. Our initial assessment of our implied portfolio temperature alignment indicates that we do not have an over-weight allocation to the highest carbon intensity names within the market sectors.
Discover more online
See our 2025 Climate and nature report for additional information:
group.legalandgeneral.com/Climatereport2025
Greenhouse Gas (GHG) disclosures
Global GHG emissions data1
Methodology
Emissions source (tCO2e) | 2024 | 2025 | Strategic report and Directors' report |
Scope 12 | 9,665 | 5,398 | regulations 2013 and have followed |
UK International | 8,983 682 | 4,730 668 | the requirements of the SECR framework. GHG emissions data is reported in line with the Greenhouse Gas Protocol |
Scope 23 (location based4) | 17,753 | 14,523 | Corporate Accounting and Reporting |
UK | 14,653 | 11,625 | Standard 'operational control' method. |
We have reported on the emission sources required under the Companies Act 2006
Category 37 - Fuel and energy-related activities Category 58 - Waste | 7474 308 | 5,795 3 | we have operational control. Operational control is where we directly procure utilities for property we occupy, own and manage, |
Category 69 - Business travel | 7,799 | 4,617 | including our subsidiary businesses and joint |
Category 710 - Homeworking | 3,323 | 3,671 | ventures14 or where we have significant |
Category 811 - Upstream leased assets (serviced offices) | 239 | 313 | control over energy use. |
Category 1312 - Downstream leased assets | 266,219 | 208,981 | Please refer to the sustainable business section |
International Scope 2 (market based5) | 3,100 3,652 | 2,898 383 | Emissions factors for fuels and electricity are published here: gov.uk/government/ organisations/department-for-energy- |
UK | 1,264 | 383 | security-and-net-zero. |
International | 2,388 | - | Our emissions, shown in the table opposite, |
Fugative emissions (included in scope 1) | 664 | 572 | cover 100% of L&G's operational footprint. |
Scope 36 | 5,118,289 | 5,709,153 | We report scope 1 and 2 emissions where |
Total Electricity | 77,796,000 | 71,798,000 | improve our management of energy can also |
UK | 69,551,000 | 63,542,000 | be found within these documents. |
International | 8,245,000 | 8,256,000 | |
District Heating | 1,424,000 | 2,183,000 | |
UK | 1,424,000 | 2,183,000 | |
Gas | 41,525,000 | 26,095,000 | |
UK | 37,760,000 | 22,406,000 | |
International | 3,765,000 | 3,689,000 | |
On-site fuel (UK) | 9,123,000 | 238,000 | |
Total Energy use | 129,868,000 | 100,314,000 |
Category 1513 - Investments | 4,832,927 | 5,485,773 |
Intensity ratio emissions per employee (scope 1 and 2) 2.3 1.9 | ||
Energy (kwh) | 2024 | 2025 |
of this report, our 2025 Climate and nature report and CDP15 Disclosure for an overview of the management of climate risk through our governance processes and internal controls. The types of measures taken to manage and
Annual GHG emissions data is aligned with the Group's financial reporting year, 1 January to 31 December, unless otherwise stated. Scope 1, 2 and scope 3 category 13 & 15 data for Real Estate covers the period 1 January to
31 December noting that November and December data is estimated, based on prior year's November and December data, to account for utility company data lag periods.
Our total scope 1, scope 2 (location) and scope 2 (market), scope 3 category 6 business travel, category 7 homeworking, category 8 upstream leased assets and category 15 investment emissions have been subject to independent limited assurance by Deloitte. The basis of preparation (or reporting criteria) for our Group carbon footprint is available within our Climate and nature report, and Deloitte's assurance report is available on pages 57 to 58 of our 2025 Climate and nature report.
Data sources: carbon data is collected and aggregated to provide a group-wide footprint and is based on a combination of actual, extrapolated, estimated and benchmarked data. Data is sourced from meter readings, invoices, supplier reports, expenses and travel booking systems. Refer to our basis of preparation within our Climate and nature report for further details.
Scope 1: All direct emissions from the activities under control.
Scope 2: Emissions from purchased or acquired electricity, steam, heat and cooling.
Location-based - reflects the average emissions intensity of grids on which energy consumption occurs.
Market-based - reflects emissions from electricity purposefully chosen. It derives emission factors from contractual instruments.
Scope 3: Indirect emissions from our value chain. Further details on L&G's assessment of materiality for all categories of Scope 3 emissions can be found within our basis of preparation in our Climate and nature report.
Category 3 emissions related to energy purchased and consumed by L&G in the reporting year, that are not included in scope 1 and 2.
Category 5 emissions from third-party disposal and treatment of waste generated in occupied properties and construction activities in the reporting year.
Category 6 emissions from business mileage, flights and train journeys for UK and US operations.
Category 7 emissions from homeworking only, calculated using Department for Business, Energy & Industrial Strategy (BEIS) conversion factors.
Category 8 emissions from the operation of assets that are leased to L&G in the reporting year and not included in scope 1 or scope 2, calculated using Real Estate Environmental Benchmark (REEB).
Category 13 emissions from tenant operations of L&G-owned assets.
Category 15 emissions including equity and debt investments and project finance in the reporting year, not included in scope 1 or scope 2.
Joint ventures are included in our footprint where we are the majority shareholder, or have operational control.
Carbon Disclosure Project (CDP).
Our Climate and nature report is available on our Group website. See: group.legalandgeneral.com/ Climatereport2025
Our Social impact report is available on our Group website. See: group.legalandgeneral.com/ Socialimpactreport2025
People
"
Our people are not just our employees -
they are the driving force behind our
purpose, our sustainability goals, and our long-term commercial success. Whether based in London or Chicago, working as insurance specialists or investment analysts, in procurement or technology, all of our people contribute to meeting the needs of our customers and clients.Our commercial success is built on their skills, talent and commitment. Every individual plays a role in delivering our strategy and fulfilling our purpose of 'Investing for the long term. Our futures depend on it'.
We began 2025 with a refreshed business strategy, purpose and new set of behaviours designed to strengthen performance and increase our impact: challenge positively, commit together and act decisively. They
A healthy organisation starts with a healthy workforce and that means recognising that people's mental and emotional needs evolve over time -across generations, life stages and personal circumstances. Many of our people will experience periods of stress or anxiety, others may be living with long- term conditions or balancing caring responsibilities. These can all affect mental health and as leaders, we have a responsibility not only to look after our own mental health, but to notice when others may need support, and to create a working environment that genuinely promotes psychological safety, inclusion and a healthier experience for everyone.
"
António Simões
Group CEO
guide how we work with one another and how we engage with our stakeholders, shaping a workforce that performs in a way that reflects our values and supports our sustainability ambitions. By empowering our people to act with integrity, curiosity, and accountability, we create a workforce that drives sustainable, long-term progress.
Inclusion & wellbeing
In 2025 we began to evolve our approach to Diversity & Inclusion (D&I) to focus on all aspects of Inclusion & Wellbeing (I&W).
These plans will be formally launched in 2026.
The evolution from D&I to I&W reflects a deliberate strengthening of our people strategy - not a retreat from our commitment to diversity. The revised framing recognises that sustainable inclusion is multidimensional and most effective when considered alongside employee wellbeing, capability and performance outcomes.
The diverse representation of our employees continues to be a strategic priority. We believe a workforce with a broad range of
Measurement
We continue to track our progress on diverse workforce representation through established goals focused on gender and ethnicity. In the UK, we also publish our gender and ethnicity pay gap data, as outlined on pages 55 to 58 of our 2025 Social impact report.
We remain aligned with the commitments set out in the Women in Finance Charter, FTSE Women Leaders Review, Parker Review and FCA Listing Rules, all of which aim to improve gender and ethnic diversity at both board and senior leadership levels.
We are pleased to have met all of our representation related goals by their target dates and continue our ongoing effort to narrow the gender pay gap.
Our performance: pay gap data (UK employees)
In 2025, we saw a widening of our gender pay gap from 28.0% to 30.2%. The overall reason for our gender pay gap remains that we currently have more men than women in senior roles. We remain committed to a progressive narrowing of the gap. We are
publishing our ethnicity pay gap data for the third time. Our negative ethnicity median pay gap narrowed slightly to -23.4%, meaning that, overall, employees from ethnic minority backgrounds continue to have a higher median pay than white employees.
For more information on our pay gaps, including causes, commentary and our full statutory gender pay gap disclosure, please see the People section of our Social impact report. group.legalandgeneral.com/ Socialimpactreport2025
Our goals | ||||
Goal | External Attestation | Scope | 2024 | 2025 |
Gender parity (50:50 gender balanced workforce) | n/a | Global | 48.8 % | 50.0 % |
40% senior female | Women in Finance Charter | Global | 38.5 % | 40.3% |
backgrounds and perspectives strengthens decision-making, has a greater understanding
representation1
FTSE Women Leaders Review
of our customers, and supports improved employee engagement and wellbeing. All of these have the potential to contribute to
40% of women on Boards FTSE Women Leaders Review
FCA LIsting Rules
Global 46.0 % 41.7 %
stronger business performance.
Inclusion and wellbeing are deeply interdependent. Inclusive cultures support wellbeing by reducing exclusion, bias and stress while positive wellbeing directly influences engagement, productivity, absenteeism and retention. By integrating wellbeing into our inclusion agenda, we will be
One woman in four key
roles2 | FCA LIsting Rules | |||
17% senior ethnic minority representation | Parker Review | UK | 18.3 % | 19.5 % |
One ethnic minority | Parker Review | Global | 23.0 % | 25.0 % |
director on the Board
FTSE Women Leaders Review
FCA Listing Review
Global 25.0 % 25.0 %
better able to build long-term organisational resilience which will ultimately prove to benefit our clients, customers and shareholders.
Overall, this holistic, future-focused framework reinforces our commitments to supporting the broad representation of our workforce while better supporting employee experience, organisational performance and sustainable growth.
We no longer report against a previous goal of '17% of workforce to be from ethnic minorities' as we met this goal in 2024. Further information about the representation of our workforce can be found in our 2025 Social impact report.
Senior roles' means employees in our four most senior management grades.
The four key roles are of Chair, Senior Independent Director, CEO and Finance Director.
Our performance: pay gap data (UK employees)
2024
2024
2025
2025
Please see page 38 of our Social impact report for more information on how we
Gender pay gap
Mean
Median
Mean
Median
engage our people, including information
Hourly pay 23.3 % 28.0 % 24.8 % 30.2 %
Bonus 45.6 % 33.4 % 43.4 % 50.0 %
on collective bargaining arrangements, and more detail on the findings of our Voice surveys and other engagement mechanisms used in 2025. Please see
Hourly pay | -8.8% | -28.2% | -5.9% | -23.4% |
Bonus | 3.4% | -25.0% | -2.3% | -27.3% |
Ethnicity pay gap
2024
Mean
2024
Median
2025
Mean
2025
Median
pages 62 and 63 of this report for a report from our Global Designated Workforce Director, Carolyn Johnson on employee engagement.
Development
Employee wellbeing
Creating a healthy and safe organisation that brings together healthy people and healthy work fosters a productive, positive and sustainable work culture, improves morale and benefits both our people and our Company.
As wellbeing can be influenced by both personal and professional issues, we encourage our people to take control of their wellbeing where possible, but as their employer we strive to understand the collective health of our organisation so we can make better decisions about how best to support our people.
We use insights from sources including employee surveys and data on sickness to inform our strategies and policies on health, safety and wellbeing.
Our then Group CFO, Jeff Davies, was the executive sponsor for wellbeing and mental health for the majority of 2025. The Group Health & Safety Committee has governance oversight of health and safety. The day-to-day management of our wellbeing programme, including mental health, sits with our Group Inclusion & Wellbeing team. As we move into 2026, our Group COO, Katie Worgan, will become the executive sponsor for the inclusion and wellbeing strategy.
Health and safety
In 2024, we laid the groundwork for our vision of 'protecting people and places, to promote safer and healthier lives', as set out in our Health and Safety policy. Refreshed in 2025, this policy applies globally and outlines our objectives and expectations across all L&G activities. Throughout 2025, we continued embedding our strategy to standardise practices and strengthen health and safety controls across all operations.
In 2025, we advanced our three-year workplace strategy towards ISO 45001 certification, strengthened safety controls, updated first aid and emergency procedures, and launched mandatory global training. Our Health & Safety teams continue to conduct horizon scanning to assess the impact of emerging legislative changes.
Engaging and developing our people
There are a range of ways via which we seek to meet our people's needs, build a culture where we understand them and involve them in shaping our Company. We use the insights we gain to inform the actions we take.
We ran our annual Voice survey - requesting feedback from our global permanent employees and fixed-term contractors. Voice measures employee sentiment on a range of issues, and the data gathered is an important indicator of organisational culture. The 2025 Voice survey had a response rate of 82%, down one percentage point year on year. Since 2024, we closely track an 'engagement index' - a
combination of responses to multiple questions covering pride, satisfaction, recommendation and intent to stay. In 2025, this engagement index was 79% favourable, one percentage point down year-on-year.
2025 was a year of transformation at L&G with new behaviours and a new purpose launched at the beginning of the year, as well as change programmes designed to support delivery of our strategy implemented across the business. 68%1 of people said they were confident about the strategic direction of the Company, which is seven percentage points above the industry benchmark.1 The survey also indicated a successful first year embedding our new behaviours, with an 85% score for behaviours role-modelling.
Providing access to learning and development opportunities helps ensure our people have the skills, knowledge and behaviours needed to deliver strategic priorities and adapt to change. It also benefits them personally by building skills and confidence, improving career progression and employability and increasing job satisfaction.
It is our ethos that learning should be relevant and tied directly to people and business needs. In 2025, we focused on developing our people in three main ways
Linking learning to business strategy: we put more emphasis on practical, performance-focused learning that helps
people build critical skills and capabilities.
Building a more connected learning culture: creating more opportunities for cross-functional teams to learn from each other, helping to form a better connected L&G.
Making learning easier to access:
we made learning more accessible by consolidating our existing learning platforms and offering targeted, high-quality content libraries.
In 2025, we invested £6.2 million in people development through a blend of external and in-house people development.
We continue to train our employees on mandatory and technical subjects, including data privacy, financial crime, health and safety, whistleblowing, conduct rules, and other matters. Please see page 44 of our Social impact report for more information on our approach to learning and development.
Supporting employees mental health at L&G
As an employer, we are committed to creating a culture where all employees can access the support they need for their mental health. In 2025, our wellbeing-focused Voice Pulse survey highlighted the need to better promote available resources and strengthen baseline mental health awareness, particularly by improving support and capability among line managers.
Discover more online on page 43 of our Social impact report group.legalandgeneral.com/ Socialimpactreport2025
External benchmark data provided by Ipsos Karian & Box, demonstrating comparison with other UK FS firms.
Strategic report
Our stakeholders
How we engage
with our stakeholders
The impact of our business is wide-reaching and affects different stakeholder groups. We place great importance on considering the needs of all our stakeholders in our decision making, and actively encourage their participation.
In shaping our strategy, we consider the impact on our stakeholder groups. Below, we provide just a few examples of how stakeholder engagement influences our business and the associated strategic priorities.
Shareholders
Our shareholders are institutional and individual investors, and we provide them with transparent information on our strategy, outlook and business performance. We generate value through share price appreciation and a combination of progressive dividends and share buybacks.
We completed our series of three deep dives on our core businesses, where we addressed our strategy to seize the growing market opportunities and conviction in
our near-term targets. We remain committed to deploying capital at required hurdle rates under our disciplined allocation framework.
We executed the largest transaction in our history and established new strategic partnerships to enhance our growth ambitions, while deepening and broadening our expertise to deliver sophisticated solutions at scale. Our synergistic businesses continue to work together, with Asset Management supporting DB schemes on the path to PRT, and Retail workplace savings producing a reliable flow of new assets into Asset Management.
We have delivered core operating EPS at the top end of our targeted range of 6-9%, dividend per share up 2% in line with our guidance and completed a £500 million buyback.
Customers
We support our customers throughout their financial lifetimes, including retirement savers and retirees, insurance policyholders, mortgage holders, our housing residents, and investors.
We deliver high-quality service. Our 20 million-plus annual customer interactions drive a +54 NPS and 82.6% satisfaction1.
Technology simplifies experience and action. Half of our pension app users return monthly and almost one in four use planning tools. Our Guided Retirement Planner, now expanded for younger savers, reached 160,000+ members, reducing projected pension shortfalls by 50%.
We empower lifelong financial confidence. Our Pension Tax calculator helped thousands understand the tax implications of lump sum withdrawals. Our social channels and A Little Bit Richer podcast educated younger audiences, with 4.9 million views, listens and downloads in 2025. Our Protection business also helps customers through hard times.
Institute of Customer Service.
Employees
Our employees are based in the UK and the US, alongside
other countries and jurisdictions in Europe and Asia. We are committed to building a dynamic, multifaceted and thriving workforce and fostering an inclusive workplace, where
care is taken to prioritise the wellbeing of employees.
We conduct an annual Voice survey to measure employee engagement. In 2025, 82%
of our employees participated, providing feedback on our strengths and areas for improvement. 83% of employees are proud to work for L&G. They also reported a clear understanding of the most critical tasks and projects for L&G's success.
For our future talent needs, we align hiring, workforce planning and critical future skills. We offered structured programmes for students, graduates, and apprentices. For the 2025 academic intake, we hired 54% female and 44% minority ethnicity candidates.
In the UK, we continue to enjoy a productive partnership with Unite, our employee union. They
represent employees individually and for collective bargaining, alongside our in-house Management Consultative Forum.
Legal & General Group Plc Annual report and accounts 2025 36
Strategic report
This section should be read in conjunction with the ensuing pages, and also our Board activities disclosure, including our section 172(1) statement.
Read more on pages 64 to 68
Regulators
As a leading financial services group, we are subject to financial services regulation and approvals in the markets in which we operate.
We maintain an open and constructive relationship with all our regulators through a programme of regular meetings with our executive and non-executive directors on key topics including our strategy and supervisory priorities.
Discussions in 2025 included how supervisory priorities and objectives may affect our business, and how we are executing our strategic focus to meet the needs of all stakeholders.
We actively engage with regulatory consultations and calls for evidence across key areas of regulatory policy and reform. In 2025, this included
Senior Managers and Certification Regime reform, Liquidity Reporting, Targeted Support
and the FCA's Pure Protection Market Study.
We liaise with our regulators to ensure timely notification of
changes to the Group's regulated population1 and accuracy of the Financial Services Register.
In relation to the Senior Managers and Certification Regime to include individuals who hold significant roles within the organisation.
Communities
Our community engagement is guided by our purpose, commercial activities, and long-term investment approach.
We continued to apply our social impact toolkit to identify local needs and shape real estate investments that deliver economic, environmental, and social benefits.
Our £3 million Health Equity Fund was fully realised, awarding grants to 43 projects.
Our flagship educational partnership with RedSTART continued into its third year, while commitments to charities including Age UK, Trussell and Royal Botanic Gardens Kew were delivered throughout the year.
We laid the foundation for the next generation of non-profit impact partnerships through
a new purpose programme.
We funded 95 apprenticeships, matched £202,670 in employee charitable fundraising and volunteering and donated £6 million to UK civil society organisations and $62,949 to US non-profits.
Further details for all of these initiatives can be found in our 2025 Social impact report.
Suppliers
We work with a broad range of suppliers to procure goods and services across several categories. We strive to work with like-minded businesses who comply with our Supplier Code of Conduct and business principles.
In addition to working with suppliers to deliver value for money, enhanced efficiency and fostering innovation, we strive to work with like-minded businesses. Those who operate ethically, with environmental responsibility and who treat
workers with respect and dignity as set out in our Supplier Code of Conduct (The Code).
Throughout 2025, we have taken progressive steps to further roll out and embed The Code and introduce more granular compliance questionnaires.
In support of our commitment to protecting the environment, our Sustainability programme has driven an increase in the proportion of our suppliers (by spend) with science-based carbon reduction targets or equivalent from 68% to 76%. We are on track to achieve our target of 80% by the end of 2026.
Legal & General Group Plc Annual report and accounts 2025 37
Strategic report
Managing risk
"
The risk team enables the safe, efficient and effective delivery of L&G's strategy.
"
Chris Knight
Group Chief Risk Officer
Identifying the risks we face and implementing strategies to keep residual exposures within acceptable limits is fundamental to
our business.
Our risk management approach enables informed risk-taking across our businesses by clearly defining the rewarded risks we are prepared to accept, alongside the risk limits and internal control standards required to ensure exposures remain within our overall risk appetite.
Beyond managing financial and non-financial risks, our framework
incorporates broader considerations, safeguarding the interests of our customers and clients, while addressing systemic challenges such as climate change and loss of nature. By extending our focus beyond purely financial measures of risk, we empower our businesses to deliver on their purpose.
We are committed to embedding the capabilities necessary to assess and appropriately price risks that offer sustainable returns within each of our operating businesses, while ensuring the expertise to manage those risks that could otherwise result in unintended outcomes.
Our culture and behaviours underpin the effective operation of this framework, fostering openness and transparency in decision-making and risk management.
A key milestone in how we manage risk is unifying the Group and divisional risk teams into one cohesive function. This consolidation supports independent and consistent operation of the risk function,
further enabling constructive challenge and overall risk oversight across our operations.
Our risk section is organised into the following subsections:
Our risk landscape
The risks that are inherent in our business arising from:
the products we write
the investments we hold to meet our obligations
the business environment in which we operate
Risk appetite
Our risk appetite sets the ranges and limits of acceptable risk taking. We have risk appetites and tolerances for different types of risks. Our risk landscape comprises of financial, non-financial and strategic risks.
Our largest risk exposures, measured by undiversified solvency capital, are to credit and longevity.
Risk management framework
Finding what you need online
Detailed information can be found in our Risk management supplement:
Discover more online group.legalandgeneral.com/ Riskmanagementsupplement2025
Our risk management framework, underpinned by the defined risk appetite, establishes a structured approach to informed risk-taking and decision-making. It ensures that potential risk exposures are properly identified and managed, while minimising the likelihood of significant financial loss, negative
impacts on our customers and clients, or harm to our reputation.
Legal & General Group Plc Annual report and accounts 2025 38