For 185 years we have provided financial services to customers across the UK. We are now a global provider of retirement solutions to corporates and individuals, and our skills lie in asset management and origination, longevity risk and technological innovation.
Our purpose is to improve the lives of our customers, build a better society for the long term and create value for our shareholders. This inspires us to use our long-term assets in an economically and socially useful way to benefit everyone in our communities.
This shapes how we work and helps us create our vision of Making a difference through inclusive capitalism.
“Economic, social and climate benefits can go hand-in-hand if the power of finance is deployed effectively.”
Nigel Wilson, Group CEO
Our businesses work together to deliver our strategic purpose and generate value for our shareholders, customers and communities.
- £1.3tn assets under management*
- A market leader in UK pension risk transfer
- The UK’s largest life insurer
*LGIM internal data as at 31 December 2020. The AUM disclosed aggregates the assets managed by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. The AUM includes the value of securities and derivatives positions.
We aim to be leaders in four key areas: retirement, investment management, capital investment and insurance. We benefit from scale in each of our businesses.
Our ambitions are underpinned by five strong businesses, each of which is innovating and expanding globally, adding new products and solutions to their strategic goals. Our businesses work together to deliver on our purpose and to drive synergies across the Group.
Legal & General Retirement Institutional (LGRI) take on pension scheme liabilities from corporate schemes in both the UK and the US. This ‘pension de-risking’ gives companies greater certainty over their liabilities whilst providing guaranteed payments to individuals within their schemes. LGRI works closely with investment management and capital investment businesses by providing capital and generating income. LGRI provide risk transfer solutions for UK and US defined benefit schemes and reinsurance solutions from our global reinsurance hub in Bermuda.
Legal & General Retail Retirement (LGRR) helps our customers accumulate pension savings and transform them into the income they need to have a colourful retirement life. LGRR provide annuities, lifetime mortgages, in-house financial advice and advice on care, as well as other pension income products.
Legal & General Capital (LGC) uses some of our customers’ pension assets, as well as the Group’s shareholder capital, to make long-term investments in assets such as specialist commercial real estate, clean energy, residential property and SME finance.
Legal & General Investment Management (LGIM) is one of Europe’s largest asset managers and a major global investor, with assets under management of £1.3 trillion. LGIM manage the assets our clients hold to cover their defined benefit pension scheme liabilities and manage their risk through matching their assets to their liabilities. We are a leading defined contribution pension manager, aiming to invest defined contribution customers’ pension assets to generate returns.
Legal & General Insurance (LGI) has been offering life insurance cover since 1836 and is the UK’s number one individual life insurance provider. We also offer ‘level-term’ life insurance in the US and our group protection business in the UK offers life insurance and income protection products to individuals through their employers. We now have over 5.5 million UK life insurance customers.
Our long-term strategy is driven by six ‘global growth drivers’. In responding to these long-term drivers, our strategic priorities are set to deliver sustainable profits as well as positive social and environmental outcomes.
Our business model is aligned with our strategy, ensuring we derive maximum benefit for our stakeholders. Environmental, social and governance issues are central to inclusive capitalism and are inherent to all six growth drivers.
As populations live longer their pensions need to last longer too. Companies increasingly need to find solutions to their ongoing pension commitments. At the same time, individuals need to ensure that their retirement funds and other assets can finance longer retirements, with defined benefit and defined contribution pension assets at $47 trillion.
Globalisation of asset markets
Asset markets are increasingly globalised and growing – worldwide assets under management are currently $89 trillion and are expected to increase to $106 trillion by 2024, representing an opportunity for international asset managers. North America, Asia Pacific and Europe are all attractive markets which continue to expand.
Investing in the real economy
Throughout the UK and beyond, there has been a long-term trend of underinvestment in major towns and cities, and we continue to experience a serious housing shortage, while Small and Medium Enterprises can also struggle to achieve scale without access to long-term capital.
The need to protect people from financial uncertainty continues. This includes helping people take personal responsibility for saving for their retirement, and safeguarding their financial wellbeing and resilience.
Consumers, clients and businesses look to digital platforms to help organise their finances and working lives. Technological solutions can increase security, improve the way we work and how we access information. This can mean the difference between success and failure in business.
Addressing Climate Change
Scientists, policy-makers, markets and regulators increasingly agree that we must move to a global warming trajectory below 1.5°C to avoid potentially catastrophic physical risks which will impact global economies, markets, companies and people. This implies transition to a lower-carbon economy, which in turn creates risk management challenges but also substantial new growth opportunities, including in renewables and innovative technologies.