Our strategy
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.
Ageing demographics
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.
Strategic priority - We aim to be global leaders in pensions de-risking and retirement income solutions, building upon success in the UK and US.
Globalisation of asset markets
Asset markets are increasingly globalised and growing. North America, Asia Pacific and Europe are all attractive markets which continue to expand. We look for selective opportunities to build and expand our successful UK business model abroad into markets where we believe we can thrive.
Strategic priority - We aim to build a truly global asset management business, entering new markets and expanding our existing operations.
Investing in the real economy
Throughout the UK and beyond, there has been a long-term trend of under-investment 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.
Strategic priority - By investing capital over the long term, we aim to become leaders in direct investments whilst benefiting society through socially responsible investments.
Welfare reforms
Changes to the state pension, the switch from defined benefit (DB) to defined contribution (DC) pensions and uncertainty over social care funding highlight the continued need to protect people from financial uncertainty. This includes helping people take personal responsibility for retirement savings, and safeguarding their financial wellbeing and resilience.
Strategic priority - We help people take responsibility for their own financial security through insurance, pensions and savings.
Technological innovation
Consumers, clients and businesses look to digital platforms to help organise their finances and working lives. Technological solutions can increase security and improve the ways we work and access information. This can mean the difference between success and failure in business.
Strategic priority - Technology and innovative solutions improve customers’ lives and increase efficiency. We aim to be UK market leaders in the digital provision of insurance, growing in the US and expanding in adjacent markets.
Addressing climate change
Scientists, policy-makers, markets and regulators increasingly agree that we must limit global warming to 1.5°C to avoid the potentially catastrophic impacts of climate change. This requires a transition to a low-carbon economy, which in turn creates risk management challenges but also substantial new growth opportunities, including in innovative technologies and clean energy.
Strategic priority - We are able to support the fight against climate change through the positioning of our own investments, our influence as one of the world’s largest asset managers and through management of our own operational footprint.
