Legal & General Group Business Model Canvas

Partnerships with pension trustees, consultants and employers facilitate workplace pensions and bulk annuity transactions, unlocking large pools of members and liabilities. Legal & General reported c.£1.3tn assets under management and administration in 2024 and serves over 6m workplace pension members, enabling scale. Joint solution design improves scheme outcomes and de-risking pathways, while long-term mandates boost asset management scale and visibility.

Global reinsurers provide longevity/mortality capacity to smooth volatility and protect capital; intermediaries and advisers access c.10m workplace members and feed LGIM (c.£1.0tn AUM, 2024). Trustee/employer partnerships unlock bulk annuities and scale (L&G c.£1.3tn AUA, 2024). Tech, data and ESG partners enable STP, underwriting and reporting while supporting an S&P A rating.

Designing protection, savings and retirement solutions addresses evolving needs, leveraging Legal & General's scale—c.£1.3tn AUM/AUA in 2024—to tailor risk-transfer and lifetime savings propositions. Modular features and digital tools improve accessibility and flexibility across channels. Pricing and features are tested against customer outcomes and regulation, with rapid iteration to keep offerings competitive.

Actuarial risk modelling (calibrated to 2024 studies) and robust underwriting sustain pricing and profitability. Multi-asset and liability-aware investing across c.£1.3tn AUM/AUA (2024) supports annuities and pensions. Hedging, ALM and Solvency II >150% (2024) stabilize capital; digital sales, claims and servicing support >10m customers.

Indexing, fixed income and real assets capabilities drive differentiated returns for Legal & General, supported by LGIM's scale — c.£1.3tn AUM (2024). Proprietary models, research and portfolio tools enhance execution and risk control across strategies. Experienced investment teams deliver repeatable processes and governance. Scale benefits improve liquidity access and pricing, lowering transaction costs and enhancing market impact.

Legal & General's 1836 heritage, c.£1.3tn AUM/AUA (2024) and investment‑grade balance sheet enable large annuity underwriting and LGIM scale. c.10m customers and strong IFA/workplace distribution deliver recurring flows and mandate wins. Modern data, automated underwriting and cyber resilience speed pricing, improve risk control and support partner APIs.

Index and fixed income scale at Legal & General (LGIM c.£1.2tn AUM in 2024) drives lower fees and tight tracking, preserving quality across core exposures. Real assets (direct property, infrastructure) deliver income and inflation sensitivity, supporting liability-matching. Active stewardship targets systemic risks across holdings. Clients gain transparent, repeatable processes and governance for consistent outcomes.

Legal & General offers guaranteed protection, pensions and annuities with liability‑matched investing to secure long‑term income for millions of customers. Bundled insurance and investment solutions simplify accumulation, decumulation and sponsor de‑risking, backed by scale and stewardship. Responsible investing and ALM-driven real assets support inflation sensitivity and durable outcomes.

Dedicated institutional partnership teams support trustees, CIOs and consultants with day-to-day governance and strategic advice; Legal & General Investment Management reported c.£1.3tn AUM in 2024 and serves 1,000+ institutional clients. Regular reviews cover performance, risk metrics and 2024 regulatory updates to ensure compliance and fiduciary standards. Custom reporting solutions meet complex oversight needs with tailored KPIs and data feeds. Co-development of solutions with clients strengthens long-term alignment and retention.

Relationship managers, adviser desks and specialist teams provide tailored structuring, 24‑hour/SLA support and adviser education, improving retention. Digital portals enable onboarding, valuations and fund switches; LGIM manages c.£1.3tn AUM (2024). Institutional teams (1,000+ clients) deliver custom reporting and reviews. Claims and retirement ops (group AUMA c.£1.1tn, 2024) prioritise speed and accuracy.

Employers act as gateways to employees for pensions and benefits, with Legal & General reporting over 2.5 million workplace pension members in 2024. Onsite and virtual enrollments delivered participation uplifts of around 15% in pilot programmes that year. Targeted communications improved contribution rates and retention, while payroll integration simplified contributions and cut reconciliation time by double-digit percentages.

Omnichannel digital sales and apps serve c.10m customers and support end-to-end journeys, reducing completion times and drop-off; group AUM c.£1.2tn (2024). Adviser and broker network of c.100,000 handles complex cases; workplace channels cover 2.5m pension members. Institutional sales win mandates via RFPs and reviews; 500+ CPD events strengthen adviser engagement.

Employers and workplace schemes sponsor pensions and benefits for employees, prioritising compliance, governance and member outcomes; Legal & General supports around 2.7 million workplace scheme members and manages c.£1.2tn of assets (2024). Solutions span default funds, tailored communications and administration platforms. As schemes mature, structured de-risking journeys (buy-ins/buy-outs, longevity hedging) are offered to reduce sponsor covenant risk.

Individuals/families (>10m customers) use L&G for protection, savings and investments; price, simplicity and trust drive choice; group AUMA £1,089bn (2024). Retirees (~13m UK 65+ in 2024) need annuities/drawdown; longevity and inflation are key. Employers/workplace schemes (≈2.7m members) seek de‑risking; institutional clients demand scale, bespoke reporting; LGIM >£1tn AUM (2024).

People, platforms and data underpin Legal & General’s service delivery, supporting a business managing over £1.3tn of assets in 2024; modernization reduces legacy maintenance and error-related costs while shifting spend toward cloud platforms. Ongoing investment in cybersecurity and resilience is essential to protect scale and client trust, and targeted automation boosts productivity and scalability across operations.

Claims/payouts, distribution (commissions/marketing), investment management (research/trading/custody) and compliance/capital are the core cost buckets; scale c.£1.3tn AUM (2024) reduces unit ops costs but raises compliance complexity and capital opportunity costs.

Net spread between asset yields (UK 10yr gilts ~4.5% in 2024) and liability costs drives Legal & Generals annuity earnings, with ANNUITY PORTFOLIO margins sensitive to gilt moves; ALM and credit selection underpin spread stability. Active hedging reduces interest rate and inflation risk while longevity experience (improving life expectancy) can compress margins over time. Investment margin from £1.3tn AUM supports capital generation.

Risk premiums from life/protection deliver recurring revenue; L&G reported ~£1.2tn AUM/AUA in 2024. LGIM AUM ~£1.0–1.2tn generates low-cost fees (~≤10bps) while real assets/solutions command ~50–150bps. Annuity margins tied to gilt spreads (UK 10yr ≈4.5% in 2024); workplace admin fees provide per-member recurring income.