I am delighted and privileged to have been asked to be Chairman of such a successful and respected company. I have worked with Legal & General for many years, and I know how special the group’s culture is.”
Sir John Kingman Chairman
Read Sir John Kingman's welcome letter in full:
- What have you achieved
in rebuilding Britain? - We’re investing our long-term funds in a £15 billion programme of direct investments in housing, infrastructure and SME financing. We’ve already invested over £10 billion.
Nigel Wilson CEO of Legal & General
Performance
Key shareholder information
Full year dividend 14.35p 2015: 13.40p
Final dividend 10.35p To be paid on 5 June 2017
Annual General Meeting 25 May 2017
Key performance indicators
Operating profit* £1,562m 2015: £1,455m
Net release from operations* £1,411m 2015: £1,256m
Adjusted return on equity* 19.6% 2015: 17.7%
Unadjusted return on equity is 18.8%
Unadjusted earnings per share 21.22p 2015: 18.16p
Adjusted earnings per share
is 22.20p*
Profit before tax attributable
to equity holders* £1,582m 2015: £1,355m
Total shareholder return 29% 2015: 114%
Over the three-year period ended
31 December 2016
Indicators & financial strength
Solvency II capital surplus £5.7bn Figures are pre-accrual of proposed final dividend. Incorporates an estimate of recalculating the Transitional Measures for Technical Provisions. As at 31 December 2016
Solvency ll capital coverage ratio
(shareholder basis)* 171%
Standard & Poor's financial strength AA- 2015: AA- Standard & Poor's financial strength rating for Legal & General Assurance Society Limited
*These are ‘Alternative Performance Measures’ – see Annual Report glossary for full details.
How we see ourselves
2006
2016
2006
£233bn assets under management
Top 50 global asset manager
2/3 of AUM in index funds
UK focus
2016
£894bn assets under management
Top 10 global asset manager
1/3 of AUM in index funds
UK US focus
A strategy for the future
Our strategy is unchanged, and it is still underpinned by long-term growth
drivers that continue to hold true, despite any short-term economic and
political turmoil.
Market leadership
in global pensions
de-risking
Growth driver
Global demographics
We offer investment solutions at every stage of a DB pension scheme’s life cycle. From the growth phase, through de-risking with LDI and bulk annuities, right to the setting up of new DC schemes.
Achievements
45% share of LDI market, UK market leader
Acquisition of
£2.9bn UK Aegon annuity portfolio
2.2m DC customers
£750m ICI pension buy-in
Diversify internationally
Growth driver
Globalisation of asset markets
We use our skilled combination of asset management and risk management skills to build international businesses in the US, Europe, the Gulf and Asia.
Achievements
Won US DC mandates
International AUM of £177bn up 45%
4 of Top5 US DB pension fund clients
Create real assets
Growth driver
Creating new real productive assets
We invest our long-term assets to match pension liabilities in housing, infrastructure and SME finance.
Achievements
£10 billion of £15 billion commitment reached
Agreed £600m* build-to-rent schemes in Walthamstow, Salford and Bristol
Investments in infrastructure:
Salford £246m*
Newcastle £350m*
London Gateway Port £400m*
*These amounts are the total investment value for these developments across all investment partners
Expand our market leading insurance business
Growth driver
Reform of the welfare state
We provide life insurance cover for death, critical illness and long term sickness and disability for individuals and companies. We aim to work closely with government to provide better financial safeguards.
Achievements
26% share of individual life protection UK market
Retail protection
direct sales up 7%
UK life insurance market No1
Mortgage club sold 1in5UK mortgages
US term life market Top10 with 1.2m customers
Build a truly digital business
Growth driver
Technological innovation
Our digital strategy allows customers to obtain quotes, apply for policies and renew them using digital technology. We’re increasing efficiency in our admin operations through building low cost digital processes.
Achievements
Lifetime mortgages digital platform. Sales exceeded £200m.
Low cost model with 80% life insurance straight through processing
- Investment / partnership with Fintech auto-enrolled pension provider
Invest in Britain’s future
Growth driver
Providing today’s capital
We create new jobs, businesses and homes by developing partnerships with alternative asset management groups. We lend funds to mid-sized UK businesses and partner with property developers to drive urban regeneration.
Achievements
Achieved €1.2 billion commitments through partnership in Pemberton SME fund
- Modular homes business launched
- Partnership with NTR. 10 onshore wind farms financed
Downloads
Year-end announcement
Videos
Other reports
For historical performance and additional information and presentations including our investor presentations, please visit our reporting centre.