Legal & General Retirement
Our business model
- LGR work closely with LGIM and LGC in many aspects of their operations. These synergies give us competitive advantages over other companies.
- It enables us to offer employers a full range of pensions de-risking investment solutions at every stage of a scheme’s lifecycle. Our solutions include matching scheme liabilities and solutions using liability driven investment solutions (LDI)
- Our businesses work together to create direct investments which mean we can sometimes invest annuity assets in certain types of infrastructure developments such as housing and other property developments in order to improve the return on long term investments.
- LGR also work together with LGIM on more traditional investment assets
Legal & General Retirement Institutional
This image describes our institutional business model
Legal & General Retirement Retail
Our Individual Retirement business enables customers from our defined contribution (DC) schemes, including auto-enrolled customers, to invest their pensions in a number of ways, including our traditional annuity plans. Our expertise in longevity science enable us to offer competitive products to customers and drive value for investors.
We are a top 2 UK lifetime mortgage provider, enabling retired people to use the equity in their homes to increase their finances in retirement. Our highly automated digital business and our expertise in longevity mean we can offer customers good value products and build a value-enhancing business. Lifetime mortgages are an equity release product where over 60s take out a lifetime loan against the value of their home, rolling up the interest, until the loan is finally paid off on death.
We now have over 10,000 customers since our launch in April 2015. Our customers use the money raised from releasing equity for the following reasons:
- Paying off mortgages
- Paying off short term credit
- Home improvements and adaptations
- Home deposits for children or grandchildren
- Boosting retirement resources
Share of Group 2016 Operating Profit
- 43% Retirement