Annual Report and Accounts 2013

Improving people’s lives.

We know every Day matters
and we never forget our social
Purpose which sees our dedicated professionals
committed to bringing finacial security
to our customers, from
first to last time buyers,
from the worlds largest
pension funds to those on a
deadline to the breadline,
we deliver socially useful
products and provide value>
to our customers

Fast Read. How we’re doing.

These are the measurements used by management to monitor our financial performance. Read more
Operating Profit 2013
£1,158m (2012: £1,087m)
Total Shareholder Return 171%
112% (2012)
Net Cash Generation £1,002m £865m (2012)
Return on Equity
16.1%
(2012: 15.4%)
Full year Dividend 9.30p (2012: 7.65p)
Employee Engagement Index 76%
(2012: 78%)

Fast Read. How we’re organised.

Our new corporate structure focuses on the needs of our customers. Read more
Mark Gregory shaking hands with a medical worker

We appointed Mark Gregory as our Chief Financial Officer on 1 July 2013. Mark’s role is to ensure that we continue to provide security for our customers with a strong balance sheet.

Legal & General Assurance Society (LGAS)

John Pollock, CEO Legal & General Assurance Society

"I'm proud of our business and confident that we will always try to do the right thing for our customers."

JOHN POLLOCK, CEO

Legal & General Investment Management (LGIM)

Mark Zinkula, CEO Legal & General Investment Management

"I'm impressed by the way in which everyone at LGIM pulls together, pooling their collective expertise to help our clients."

MARK ZINKULA, CEO

Legal & General Retirement (LGR)

Kerrigan Procter, Managing Director Legal & General Retirement

"It's been an exciting year for our retirement business." KERRIGAN PROCTER, MD

Legal & General America (LGA)

Jimmy Atkins, CEO Legal & General America

"We expanded the breadth and depth of distribution, serving more consumers" JIMMY ATKINS, CEO

Legal & General Capital (LGC)

Paul Stanworth, Managing Director Legal & General Capital

"Our success is in delivering benefits to society: giving financial security to retired customers." PAUL STANWORTH, MD

Fast Read. Market Environment.

Five big themes underpin long term growth and innovative solutions. Read more

AGEING POPULATIONS

The explosion in the number of over 60s will change the whole structure of society.

GLOBAL OVER 60S

800m 2bn
Today by 2050

WELFARE REFORM AND AUSTERITY

The Coalition's welfare reform programme aims to save £18 billion a year.

UK GOVERNMENT PLANNED BENEFIT CUTS

£18bn yearly by 2014/15, compared to 2010/11
Today

RETRENCHING BANKS

Shelter said: "We need to build at least the 250,000 homes per year in England."

REDUCTION IN HOMES BUILT IN THE UK

426,000 144,000
Homes built in 1968 Homes built in 2012

GLOBALISATION OF ASSET MARKETS

We're a top 25 global asset manager, having increased international AUM by 302%.

GROWTH IN US PENSION ASSETS

$18.9tn $9.9tn
US pension fund assets 2013 US pension fund assets 2003

DIGITAL LIFESTYLES

The widespread use of mobile devices to access the internet has changed the nature of internet usage.

GROWTH IN UK MOBILE INTERNET USAGE

94% 16-24s in 2013 who use mobile devices to access the internet

Fast Read. Our strategy and progress.

How our response to the five big themes helps us achieve our ambition. Read more

Strategy

Examples of Progress

RETIREMENT SOLUTIONS

550,000 employees auto-enrolled in the UK.

£70 billion global AUM in liability driven investments.

PROTECTION

21% market share, outperforming our competitors.

One million protection customers in the US.

DIRECT INVESTMENT

Part of the group of insurers investing £25 billion into infrastructure over the next five years.

£2.9 billion investments in a range of sectors.

LGIM INTERNATIONAL

$38 billion assets under management.

We were granted a Chinese regulatory license.

DIGITAL SOLUTIONS

£64 billion customer assets due to the purchase of Cofunds in March 2013.

We’re the fastest growing home insurer in the direct market.

Fast Read. Our Purpose.

Our customers rely on us, whether it’s protecting against unforeseen circumstances, helping to save for retirement or investing money wisely so that it grows over time. Read more

HEALTH

Jimmy Atkins, CEO LGA, showing a banknote to an elderly woman

JIMMY ATKINS, CEO LGA

“Our life insurance provides the funds to enable family members to carry on without their loved ones.”

£717m UK life protection claims paid (2012: £694m)

PENSIONS

John Pollock, CEO LGAS, playing the guitar

JOHN POLLOCK, CEO LGAS

“Our social purpose means we aim to do the right thing for our customers.”

£304bn Pension fund assets managed by LGIM (2012: £266bn)

HOUSING

Paul Stanworth, Managing Director LGC, visiting a construction site

PAUL STANWORTH, MANAGING DIRECTOR LGC

“We need an innovative approach to housing, where there’s been a slow decline in homebuilding since the 1970s.”

£5.2bn Infrastructure and direct investments