What we do
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.
- £1.4tn assets under management
- A market leader in UK pension risk transfer
- The UK’s largest life insurer
Areas of focus
We have delivered consistent and continuous growth for shareholders over the past decade and remain equally ambitious for the future
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 low-carbon technologies, are a world-leading ESG investor and have set ourselves ambitious targets.
Investing in the real economy - Our direct investments range from
affordable housing, to science hubs and creative industries.
Technological innovation - From building data centres
to supporting our customers, we invest in technology to build a better future for everyone.
Improving wellbeing - We prioritise the welfare of our employees, who in turn support the millions of people who rely on us.
Market opportunities
Our strategy is to build on markets where we are a leading player with significant market share, and enter markets which are large and growing
Ageing demographics
The world population’s average life expectancy is projected to reach 77 years by 2050 whilst the working-age population declines. We participate
in the global pension risk transfer (PRT) market, focusing on corporate defined benefit (DB) pension plans in the UK, the US, Canada, Ireland and the Netherlands, which together have nearly £7 trillion of pension liabilities. Market commentators anticipate between £150 to £250 billion of UK PRT demand over the next five years.
Welfare reforms
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. UK defined contribution (DC) assets are expected to increase from £0.6 trillion in 2021 to £1.1 trillion by 2029.
Globalisation of asset markets
As global assets under management are projected to increase from $103 trillion in 2020to $136 trillion by 2025, we will continue to innovate in the US retirement income market, expand into European wholesale asset management and increase our presence in Asia Pacific.
Technological innovation
The retail protection market is expected to increase to $30 billion in the US by 2025. We anticipate continued premium growth across our UK and US protection businesses as technological innovation makes our products
more accessible to customers and supports further product and pricing enhancements.
Investing in the real economy
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 and our own capital into the real economy, delivering financial security for pensioners and fostering growth across towns and cities in the UK.
Addressing climate change
As global finance supports the changes our planet needs to address climate change, this creates an important shift in investment allocation and the biggest investment opportunity of our lifetimes. It is estimated that $20 trillion of investment is needed by 2025 alone to put us on the path to achieving global net zero emissions by 2050.
