Investment case


For 186 years we have provided financial services to customers across the UK. We are now a global provider of retirement solutions to corporates and individuals, and our skills lie in asset management and origination, longevity risk and technological innovation.

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Financial ambition

At the Capital Markets Event in November 2020 we outlined our new five-year financial ambitions after achieving our previous ambition of growing EPS at 10% p.a. (from 2015) in 2019, a year earlier than expected.

Cumulative (£bn) 2016 - 2019 2020 - 2024 To H1 2022
Cash generation1 5.9 8.0 - 9.0 4.3
Capital generation2 5.5 8.0 - 9.0 4.1
Dividends3 5.8 8.0 - 9.0 2.5

1. Cash generation is IFRS Net release from operations (excluding non-BAU mortality releases)
2. Capital generation is Solvency II operational surplus generation
3. Dividends declared. Assumes a flat final 2020 dividend, and 3-6% annual growth thereafter
4. The ambition is based on the aggregate performance over a five-year period. Performance may vary from year to year and individual statements may not be met in each year on a standalone basis.


Return on Equity at 30 June 2022

Over the last five years,
RoE has averaged just over 20%


Solvency II coverage ratio at 30 June 2022

We provided an estimated mark to market
Coverage ratio as at 30 September 2022
of between 235-240%

Our business model

Our ambitions are underpinned by four strong businesses, each of which is innovating and expanding globally, adding new products and solutions to their strategic goals.


One of the world’s leading bulk annuity providers,
helping companies de-risk their defined benefits while
providing security in retirement to more than 1 million people.

asset: £78.8bn
revenue: £26.3bn


One of the world’s leading asset managers,
managing pension assets for third-parties and
inhouse pensions worth over £1 trillion.

AUM: £1.3tn


The Group’s alternative asset platform,
deploying shareholder capital in a range
of underserved areas of the real economy
that are backed by long-term structural trends.

Direct investment AUM: £3.7bn


Covering the savings, protection and retirement
needs of our c12 million retail policyholders and
workplace members. A market leader in individual
annuities and lifetime mortgages, with the ambition
to be the UK’s leading retirement brand.

Gross written premium: £1.6bn

Strengths and capabilities

Our business model is underpinned by the depth and breadth of our resources. These resources allow us to capitalise upon our strategy. They are key to our success and their continued development and enhancement is a constant focus for our business.


Our ambitions are underpinned by four strong businesses, each of which is innovating and expanding globally, adding new products and solutions to their strategic goals.


We have a trusted brand with a strong reputation for stability, financial strength and a straightforward approach to business.


We are a long-term business with robust regulatory capital reserves. We invest our customers’ pension assets and our own capital directly into the UK economy in a way which benefits society as a whole.


The long-term nature of our business means we have a loyal customer base in the UK and, increasingly, overseas. We partner with companies throughout their pensions de-risking journey and with individuals over their lifetimes.

Our six 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. Environmental, social and governance issues are central to inclusive capitalism and are inherent to all six growth drivers.

Ageing demographics


Investing in the real economy

Welfare reforms

Technological innovation

Addressing climate change