Our strategy
Sustainable growth
Each of our businesses plays an integral role in the future of L&G.
We will continue to grow our Institutional Retirement business. That will secure the benefits of millions of DB pension holders, fund the production of socially valuable assets and deliver reliable capital flows for Group for years to come.
Our Asset Management business united LGIM and LGC to become our critical long-term growth engine. It’s scaled and international, and works deeply across public and private markets to provide complex, responsible investment solutions and opportunities.
In our Retail business, we’re strengthening our propositions to partner with customers throughout their lifetimes. We help them save, protect, plan for and ultimately enjoy retirement. That starts from the day they enrol in their workplace pension scheme.
Sharper focus
Bringing LGIM and LGC together as our single Asset Management business recognised the evolving needs of our clients and partners.
It’s helped us combine our strength and heritage in public markets, and deep asset origination expertise in growth sectors, with our international distribution and product development capabilities. That’s led to the creation of new blended propositions and investment opportunities.
We have also established a Corporate Investments Unit. It oversees assets and businesses that are not a strong fit with our refreshed strategy, although some do deliver strong financial performance.
Enhanced returns
Our new strategy seeks to deliver strong returns over time. It does so through making the most of our synergies, investing in the business for long term growth, and returning capital to shareholders through dividends and share buybacks.
On 12 June 2024 we announced our plan to increase returns to shareholders. It started with a £200m share buyback that was the first of an ongoing series.
The Board also confirmed its intention to increase the dividend by 5% for both Half and Full Year 2024 (payable in September and June). It then intended to grow the dividend at 2% annually, for three years from Half Year 2025.
António Simões on our strategy
Listen to António explain our vision for a growing, simpler and better-connected L&G, continuing to build on our shared purpose, to benefit our customers, society and shareholders.
Summary of our strategy
We are focusing and simplifying our business, mapping our capabilities to the most compelling near-term market opportunities, and building for long term growth.
Strategy - at a glance
Our new strategy demonstrates our ambition and commitment to invest to grow our business. By seizing the opportunity in Institutional Retirement while investing to scale and deepen our capabilities in Asset Management and Retail, we will evolve our business to better address society’s changing investment needs, and shift towards fee-based earnings at higher returns on capital.
Capital Markets Event on 12 June 2024
On 12 June 2024, we updated the market on Legal & General’s refreshed strategy. Our vision is for a growing, simpler, better-connected L&G, focused on three core businesses, and set apart by our shared sense of purpose and powerful synergies.