Legal & General expects its group core operating earnings per share to rise by between 6% and 9% in 2025, confirming that it remains on track to meet its medium-term financial goals amid a sweeping overhaul of its asset management operations.
The insurer, which manages more than £1 trillion in assets, is due to set out a new strategy for its investment arm later today. That plan is expected to focus on becoming more capital-light, expanding third-party distribution, and increasing its offering of more complex investment solutions - all designed to boost fee-based revenues and improve cost-efficiency.
L&G has reiterated its 2028 ambition of delivering £500 million to £600 million in operating profit. The company has already begun moving in that direction with internal restructuring.
In May, it merged its index and ETF units - a combined £512 billion in assets under management - and confirmed around 70 job cuts, citing the need to streamline operations and drive margin growth.
The insurer has also made a decisive move into private markets. Last month, it acquired a 75% stake in US-based Proprium Capital Partners, a real estate-focused investment firm with $3.5 billion in assets under management. The acquisition supports L&G’s goal of increasing private market AUM from £50 billion to £85 billion by 2028.
Beyond organic growth, Legal & General is also redeploying capital following its exit from the US protection market. In March, the company launched a £500 million share buyback, funded by the $2.3 billion sale of its US life insurance business to Japan’s Meiji Yasuda - part of a wider capital return strategy focused on boosting shareholder value.
The combination of business simplification, strategic acquisitions and capital reallocation reflects a broader pivot within L&G - away from traditional balance sheet exposure and toward more scalable, fee-generating businesses that promise stronger returns over time.
