Our businesses work together to deliver our strategic purpose and generate value for our shareholders, customers and communities.
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.
By taking a long-term approach to inclusive capitalism, our businesses work together to make a difference. We remain focused on the following areas:
Addressing climate change - We are investing in new climate-friendly technologies, are a world leading ESG investor and have set ourselves ambitious targets.
Investing in the real economy - We have invested c.£1 billion in cities across the UK, gained planning permission for 6,000 homes across our housing businesses and funded regeneration schemes.
Innovation in the UK - We have an innovative approach to tackling economic and societal issues and are active investors in data centres, creative industries and science and technology.
International expansion - We will build on the success of our US pension risk transfer business and grow our presence in Asia.
The world population’s average life expectancy is projected to reach 77 years by 2050 whilst the working-age population declines. Private defined benefit (DB) and defined contribution (DC) pension assets nearly doubled over the last decade to reach $47 trillion, presenting opportunities in pension de-risking, annuities and mortgages in the UK and the US.
As we recover from the impacts of Covid-19, the UK’s social security system will be under increasing strain, thereby placing ever more onus on individuals to build and maintain their own financial wellbeing. The market opportunity across UK DC assets and UK ISA assets is expected to increase to £1.9 trillion by 2025 and we will increase our UK DC assets under management.
As global assets under management are projected to increase from $89 trillion to $106 trillion by 2024, we will continue to innovate in the US retirement income market, expand into European wholesale asset management and increase our presence in Asia Pacific.
The retail protection market is expected to increase to £30 billion across the UK and US by 2025. We seek opportunities to improve customer service and efficiency through technology and our Fintech businesses are expected to grow as they diversify their products.
There is a long-term trend of under-investment in major towns and cities, and small and medium enterprises. By 2025, an estimated 400,000 build to sell and build to rent units are expected to be built per annum in the UK. We invest pension assets into the real economy, delivering financial security for pensioners and fostering growth across towns and cities in the UK.
As global finance gets behind the changes our planet needs to address the climate crisis, this creates an important shift in investment allocation and the biggest investment opportunity of our lifetimes. $130 trillion of investment is needed to achieve global net zero emissions ($20 trillion by 2025). We will continue to invest in clean energy initiatives, influence as an investor and manage our operational carbon footprint.