Legal
& General Group plc
4 December 2024
Deep Dive: Institutional
Retirement
Legal & General Group Plc
("Legal & General" or the "Group") will today hold the first in
a series of deep dives on its three divisions. Today's deep dive
will cover Institutional Retirement.
The event will start at 9.00am GMT
and will be webcast here (link).
Presentation slides will be made available online shortly
beforehand (at the same link).
Executing well in support of our Group
targets
The Group is making good progress in
delivering on the strategy set out at the Capital Markets Event in
June. It is on track to deliver mid-single digit growth in
operating profit for FY24 (in line with guidance) and, thereafter,
to achieve its targets of 6-9% CAGR in core operating EPS
(FY24-FY27) at an operating return on equity >20% (2025-2027) as
well as cumulative Solvency II capital generation of £5-6bn
(2025-2027).
PRT
market opportunity is highly attractive; L&G strongly
positioned
The global Pension Risk Transfer
(PRT) market is growing and attractive and the Group is
well-positioned to continue to seize the opportunity.
Our pipeline of PRT deals is as
strong as it has ever been and our guidance of £50-65bn of UK PRT
(2024-2028) remains unchanged. We reiterate the division's target
operating profit CAGR of 5-7% (FY23-FY28).
Year-to-date we have written global
PRT volumes of £10.0bn and are exclusive on a further £0.5bn
expected to close in 2024. Of this £10.5bn, £8.4bn is UK and £2.1bn
is International, with L&G writing its highest ever volumes in
the US and Canada.
In line with others in the market,
we have adopted a largely gilts-based investment strategy for the
majority of the business we have written this year, reflecting the
prevailing market environment. This means that year-to-date strain
on UK PRT is c.1% (significantly lower than our guidance of below
4%).
We anticipate returning to
shareholders a proportion of the capital not deployed on strain
this year. This will form part of the Board's wider consideration
of buyback capacity, which will be set out at the FY24 results in
March 2025 and would be incremental to the capital return
intentions indicated at the Capital Markets Event in
June.
Notes to Editors
About Legal & General
Established in 1836, Legal &
General is one of the UK's leading financial services groups and a
major global investor, with £1.1 trillion in total assets under
management (as at HY24) of which c.40% (c.£0.5 trillion) is
international.
We have a highly synergistic
business model, which continues to drive strong returns. We are a
leading international player in Institutional Retirement, in Retail
Savings and Protection, and in both public and private markets
through our Asset Management division. Across the Group, we are
committed to responsible investing and dedicated to serving the
long-term savings and investment needs of customers and
society.
As at 3 December 2024, Legal &
General has a market capitalisation of £13.1 billion.
Enquiries
Investors
Edward Houghton, Group Strategy &
Investor Relations Director
investor.relations@group.landg.com
+44 203 124 2091
Gregory Franck, Investor Relations
Director
investor.relations@group.landg.com
+44 203 124 4415
Media
Natalie Whitty, Group Corporate
Affairs Director
Natalie.Whitty@group.landg.com
+44 738 443 5692
Lauren Kemp, Group Head of Corporate
Media & Issues
Lauren.Kemp@lgim.com
+44 794 651 4627
Lucy Legh / Charlie Twigg, Headland
Consultancy
LandG@headlandconsultancy.com
+44 20 3805 4822