Sustainable Growth, Sharper Focus, Enhanced Returns

Divisional strategies

Institutional Retirement

The Group is well placed to seize the significant Institutional Retirement opportunity, both in the UK and internationally. The addressable market is significant – only 10% of the c.£6.6tn of Defined Benefit pension assets in the UK, the US, Canada and the Netherlands have so far transferred to insurers.

In the UK, where we are the market leader, volumes are expected to average £45bn per annum over the next decade, up from c£25bn per annum since 2018. Internationally, we have an established position in the US and are growing in Canada and exploring our partner model in the Netherlands. We will continue to pursue a disciplined approach to profitable growth in these markets.

By FY 2028 we expect to:

• Grow Institutional Retirement operating profits at 5-7% CAGR (2023-2028)
• Write £50-65bn of UK PRT at a capital strain of less than 4% (2024-2028)

Asset Management

We are bringing together LGIM and LGC into a single, global asset manager, and investing to scale and deepen their complementary capabilities across public and private markets.

We are committed to driving growth in public markets, creating a scalable global operating platform, driving margin expansion through operating leverage and increasing average revenue margin.

We plan to materially scale our in-house and origination platform capability in private markets, significantly expanding our capabilities and client offerings across Real Estate, Private Credit and Infrastructure, including through an accelerated programme of fund launches.

Michelle Scrimgeour has announced her intention to step down from the role of LGIM CEO, and the Group has begun a global search for a CEO to lead the growth of the combined Asset Management division. Michelle will continue as CEO of the legal entity, LGIM (Holdings) Limited, until this appointment is made, and will lead the transition and establishment of our new division with Laura Mason⁷, who is appointed CEO of Private Markets. Both will report to the Group CEO.

By FY 2028 we expect to:

• Deliver operating profit of £500-600m by 2028
• Achieve Cumulative Annualised Net New Revenues (ANNR) of £100-150m (2025-2028)
• Grow our Private Markets platform AUM⁸ to £85bn (£48bn at FY23)

Retail

We will invest to drive growth in retirement and savings, recognising the opportunities presented by the growth in defined contribution and decumulation assets, and the corresponding customer need for support and guidance.

We will focus on scaling our Workplace platform profitably, leveraging our strong Mastertrust position and opportunities in technology to improve the quality and efficiency of our proposition.

At the same time, we will aim to increase the profitability and capital contribution of our Protection businesses, making better use of technology and AI to improve efficiency and customer experience.

By FY 2028 we expect to:

• Achieve 6-8% CAGR in operating profit (2023-2028)
• Generate £40-50bn of Workplace net flows (2024-2028)

Corporate Investments

Non-strategic assets, most materially CALA, will be managed by a Corporate Investments Unit, reporting to the Group CFO, with the goal of maximising shareholder value ahead of potential divestment.