This was a period of further achievement and considerable financial success for the Group. I’m delighted to be able to report to you once again that shareholders are benefiting from this success.”
Sir John Kingman Chairman
- You're investing capital in rebuilding Britain's infrastructure. Why is that so important?
- We have now put £14.4 billion in direct investments, such as urban regeneration, housing, clean energy and SME finance. Building new homes has been a priority for me, because lack of supply has driven up house prices and contributed to generational unfairness and inequality. This gives us an opportunity to create long-term assets.
Nigel Wilson CEO of Legal & General
Key shareholder information
Full year dividend 15.35p 2016: 14.35p
Final dividend 11.05p To be paid on 7 June 2018
Annual General Meeting 17 May 2018
Key performance indicators
Used to determine variable elements of management remuneration
Earnings per share 31.87p 2016: 21.22p
Earnings per share is excluding mortality release and one-off US tax is 23.10p
Profit before tax attributable
to equity holders* £2,090m 2016: £1,582m
Total shareholder return 29% 2016: 29%
Over the three-year period ended
31 December 2017
Solvency II capital surplus £6.9bn 2016: £5.7bn
Figures are pre-accrual of proposed final dividend. As at 31 December 2017
Solvency ll capital coverage ratio
(shareholder basis)* 189%2016: 171%
Read how our KPIs align with our incentive arrangements PDF 45.6KB
* These are 'Alternative Performance Measures' - see Annual Report glossary for full details
What we do
We have three broad business areas which provide solutions for our customers
We provide reliable and secure pension income for individuals and members of corporate pension schemes. We use some of our long-term funds from pensions and other products to invest in infrastructure, home and small businesses.
Legal & General Retirement (LGR)
Legal & General Capital (LGC)
Legal & General Retirement (LGRI)
Working with companies’ pension fund trustees and their advisers to provide risk transfer solutions.
Legal & General Capital (LGC)
Builds relationships directly with partners and LGIM to develop direct investments and increase the risk adjusted returns on shareholder assets.
Legal & General Retirement (LGRR)
No.1 in UK lifetime mortgages, with 33% market share. Top three in UK individual annuities.
UK based in London, Hove, Solihull, Bracknell and Sherburn, North Yorkshire. Our US risk transfer business is located in Stamford, Connecticut. We also have a Bermuda office.
We provide institutional and personal investment management services, managing the investments of many of the UK’s biggest corporate pension schemes.
Legal & General Investment Management (LGIM)
UK’s leading investment manager for DB plans, with expertise in liability driven investments (LDI) and equity index funds. 42% market share for LDI.
We have established a leading position in US LDI and are building our presence in Asia, the Middle East and across Europe.
3rd in UK for retail net flows of £3bn, distributed by financial advisers and partners. We also offer products online and by phone.
Announced the acquisition of an Exchange Traded Fund (ETF) provider in 2017.
Main UK office is based in the City of London, with US offices based in Chicago. Other international offices include Hong Kong and Tokyo.
We combine administration and investment services as well as offering investment only. No.1 in UK for managing DC assets, with £68.2bn AuM at 31 December 2017.
We help people safeguard their families’ financial futures through providing life, critical illness, and disability, long-term sickness, buildings, possessions, pets and travel.
Legal & General Insurance (LGI)
General Insurance (GI)
No.1 in UK retail protection, with 24% market share. No.1 in UK mortgage club and surveying. Top 10 provider of US term life.
Our main offices are based in Birmingham, Hove, Cardiff and Barnsley. Our US office is based in Frederick, Maryland.
Ranked as a top four player in UK Group Protection market, with 16% market share.
Our distinct way of working
- Our three asset businesses LGIM, LGR and LGC work very closely together
- LGC invests in early stage assets, some of which can be used to back annuity assets for LGR
- LGIM and LGR work together in the pensions de-risking journey
Drivers of strategy
Our long-term strategy is driven by six global growth drivers
Ageing populations mean that pension savings need to last longer, affecting individuals and companies alike. Companies have seen an increasing need to restructure their pension schemes to meet rising costs.
£455bn Projected UK DC assets in 2030
(Source: Pensions Policy Institute)
Globalisation of asset markets
According to PwC, global assets exceed $80 trillion. Like many other asset managers we need to step up to take advantage of the potential of expanding global markets in North America, Asia/Pacific and the Middle East.
$47.4tn AuM held by US asset management companies (Source: Willis Towers Watson)
Creating real assets
There’s an urgent need to invest in infrastructure and urban regeneration. Many UK cities outside London need investment to match global competitors. At the same time the UK continues to experience a serious housing shortage.
52%Reduction in house building completions in the 40 years between 1976-77 to 2016-17
Many families that rely on state benefits partially or completely, struggle to survive financially following death, disability or long-term sickness. People need help to save more for retirement and to build financial independence.
73% UK adults who have no life insurance cover (Source: Mintel, June 2017)
Consumers increasingly expect digital ways to organise their finances. In the low-cost world, technological solutions can mean the difference between success and failure.
56% Consumers who say that the quality of insurer’s online service affects their choice of provider. (Source: Mintel, December 2017)
In recent years, equity and investment capital have been in short supply. The UK needs investment in modern, digital start-up businesses to create jobs, stimulate economic growth and improve UK productivity.
1.8% Change in UK productivity (output per hour). Q3 2007 to Q3 2017 (Source: ONS).
For historical performance and additional information and presentations including our investor presentations, please visit our reporting centre.