Growing, simpler, better-connected
Introduction
In 2024, we shared our vision of a growing, simpler and better-connected L&G, delivering enhanced returns to shareholders through a sharper focus on our Asset Management, Retail and Institutional Retirement businesses. Working together, these businesses will develop our position as a global leader in addressing society’s investment and retirement needs.
In 2025, L&G’s leadership team took this strategy to the next level of detail and delivery. Reflecting our commitment to clear communication with investors and shareholders, we hosted capital markets ‘deep dive’ events to explain our growth strategy for each of our core businesses, setting out our key priorities, and how we will build our capabilities to secure success.
Our strategy
L&G’s purpose ‘Investing for the long term. Our futures depend on it’ shapes our strategy and the way we do business, reflecting our long-term mindset, the lasting value we create, and our responsiveness to clients’ and customers’ needs.
In 2025, we made strong progress to transform our business in support of our strategy, underpinning the positive impact of the Company now, and in decades ahead.
Sustainable growth
Sharper focus
Enhanced returns
Our Flow solution has now surpassed £1 billion in pension de-risking transactions.
Our Guided Retirement Planner reflects the digitalisation and personalisation of our services, providing simple, real‑time support to members.
We delivered disciplined capital management, announcing the first tranche of a £1.2 billion buyback to be executed over the next 12 months.
Performance measures
A year of significant strategic progress and strong financial performance, whilst investing for the long term.
Profit before tax
£824m
(2024: £448m)1
Adjusted operating profit
£1,756m
(2024: £1,711m)
Core operating earnings per share
20.93p
(2024: 19.20p)1
Store of future profit
£13.3bn
(2024: £13.2bn)1
Solvency II coverage ratio
203%
(2024: 232%)
Solvency II operational surplus generation
£1,530m
(2024: £1,461m)1,2
Non-financial measures
Investment portfolio economic GHG emission intensity
51 tCO2e/£m3
(2024: 50 tCO2e/£m)
Operational footprint (scope 1 and scope 2 (location))
19,921 tCO2e3
(2024: 27,418 tCO2e)
Employee engagement index
79%
(2024: 80%)
Chief Executive spotlight
“Investing for the long term. Our futures depend on it – guides our commercial decisions, and how we build a stronger, more future proof business.”
Group Chief Executive Officer
Hear from António Simões and Andrew Kail in our 2025 Full Year Results video
Our purpose, strategy and behaviours
Our purpose, strategy and behaviours shape how we operate as a Group. The sections below illustrate this through examples – how our purpose statement is brought to life in practice, how our strategy is driving progress across our businesses, and how individuals exemplify our behaviours.
Our purpose in action
To support our purpose of 'Investing for the long term. Our futures depend on it', we have launched a forestry and habitat creation project at Pudding Wood, a 155-hectare site near Gatwick Airport. Working with ecologists, forestry specialists and local partners, we are designing a site that will sequester around 25,000 high-integrity carbon credits, plant up to 140,000 native trees and restore diverse habitats, including woodland, grassland and ponds.
Our strategy in action
During 2025, we completed a milestone £4.6 billion buy‑in with the Ford pension schemes, the largest PRT transaction announced in the UK in 2025 and the second largest in our history. The transaction reflects disciplined execution of our strategic priorities.
Behaviours in action
In the past year, we embedded our refreshed behaviours - Challenge positively, Commit together, Act decisively - across the Company. These behaviours provide a clear, practical guide for how we work and collaborate, building a culture of accountability and high performance. They were shaped by our Voice survey feedback, ensuring we focus on where we can improve together.
Business model
Building on our strategy in 2025
Our businesses have shown commercial momentum as we execute on our strategy to deliver sustainable growth, a sharper focus, and enhanced returns. Throughout the year, we have become a growing, simpler and better-connected L&G and have focused on our three core core businesses: Institutional Retirement, Asset Management and Retail. Our Institutional Retirement business continued to demonstrate our position as a global market leader in PRT, Asset Management built out our capabilities across our private markets platform, and Retail positioned our Workplace Savings business to capitalise on the structural Defined Benefit to Defined Contribution shift.
Institutional Retirement
In Institutional Retirement, we continued to demonstrate our position as a global leader in PRT, writing £11.8 billion of business with 63 schemes in the UK, US and Canada. In the UK, we completed 45 schemes, 34 of which were with clients of our Asset Management division. Our long-standing relationships with schemes through Asset Management, combined with the innovative solutions we develop for all our clients, reinforces the competitive advantage of our synergistic operating model and highlights the value it continues to deliver.
Asset Management
Asset Management finished 2025 in a position of renewed strength, delivering a 5% increase in AUM to £1,197 billion. We have begun to execute on our strategy, realise our untapped potential and meet our clients’ evolving needs, repositioning the business for growth. We saw strong expansion in our Private Markets AUM, growing to £75 billion. This reflects the successful build‑out of capabilities in private credit, residential mortgages and real estate strategies.
Retail
The Retail business delivered strong performance over the year. We have momentum in Workplace Savings, with net flows of £6.2 billion, demonstrating the trust placed in us by employers and members. Individual Annuity sales reached £1,753 million, supported by sustained customer demand and our competitive at retirement proposition. Our Protection business generated £270 million of new business premiums, underpinned by enhanced customer returns.
Progressing on our vision for growth and shareholder value
Throughout 2025, we made meaningful progress in delivering our strategy. Our strategic partnerships enhance our capabilities and strengthen our position across our three core businesses.
Progressing with partnerships
Our strategic partnerships enhance our capabilities and strengthen our position across our three core businesses. The sale of our US protection business and building a partnership with Meiji Yasuda has helped simplify our business and our collaboration with Blackstone enhances our private credit capabilities.
1Comparative information has been re-presented to reflect the results of the US protection and US pension risk transfer (PRT) businesses as discontinued operations. See Note 1 of the financial statements on page 136 for further information.
2The methodology for calculating Solvency II operational surplus generation has been updated such that TMTP amortisation is now reflected as an operating variance. Comparative information has been re-presented accordingly. See further information on APMs on page 250.
3Our total scope 1, scope 2 (location) and scope 3 category 15 emissions have been subject to independent limited assurance by Deloitte. The basis of preparation (or reporting criteria) for our Group carbon footprint and Deloitte’s limited assurance report is available in our 2025 Climate and nature report. Carbon dioxide (CO2) is the most significant contributor to global anthropogenic GHG emissions, which also includes other gases such as methane and nitrous oxide. The equivalent warming impact of non-CO2 GHG emissions are measured as tonnes of CO2 equivalent (tCO2e).