“The most important strategic goal for Legal & General is to build our exposure profitably across three distinctive business areas.”
Tim Breedon, Group Chief Executive
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“Each business presents valuable growth opportunities for Legal & General in its own right. But it is the combination which really gives us the strong and diversified business model to which we aspire…
…it means exposure to the entire financial life cycle of our customers; from early investment, through family saving, to asset accumulation, to pensionable income. And it means we can leverage our strengths: in investment, in customer distribution and in administration across a broad range of products and markets…
For shareholders, I think the message is clear: balance maximises use of our strengths and our resources. It spreads risk. And it creates a coherent link between what we do and what households in the UK, and increasingly overseas, need with respect to their long term financial planning.
That is the strength of our brand; and the strength of our financial proposition.”
Record BPA Business
Fourth quarter Bulk Purchase Annuity (BPA) Sales set a new record for Legal & General with over £600m single premium wins from companies which have chosen to insure all or part of their pensions with us.
These ‘new style’ BPA transactions for employers are evidence that a broader market is opening and that it plays to Legal & General’s expertise in pension scheme buyouts and strength in delivering high quality service.
Postcode Annuity Pricing
Annuities have traditionally been priced to reflect the likely lifespan of annuitants, based on gender (women typically outlive men) and age. However, wide discrepancies exist between different geographical locations, and these have not traditionally been factored into pricing. Using its huge bank of experience data and statistics, Legal & General has been able to offer better deals for those living in some areas. The scheme was trialled in autumn 2007, and is now being rolled out more broadly following a good take-up. As annuity pricing becomes more sophisticated, Legal & General is at the forefront of a more tailored product, offering better value for money for customers.
