L&G to create single asset management division

Written by Adam Cadle

12/06/2024

Legal and General (L&G) is to create a single asset management division, bringing Legal & General Investment Management (LGIM) and Legal & General Capital (LGC) together as a unified, global, public and private markets asset manager.

By FY 2028, L&G said it expects to deliver operating profits of £500-600m in its asset management division, achieve cumulative annualised net new revenues (ANNR) of £100-150m (2025-2028) and grow the private markets platform AuM to £85bn (£48bn at FY 23).

LGIM has also begun a global search for a CEO to lead the growth of the combined asset management division after Michelle Scrimgeour announced her intention to step down from the role of LGIM CEO. Laura Mason has been appointed CEO of private markets.

In its institutional retirement business, L&G said it 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.£6.6trn 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, L&G expects to deliver operating profits at 5-7% CAGR in the institutional retirement business and to write £50-65bn of UK PRT at a capital strain of less than 4% (2024-2028).

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