Key performance indicators (KPIs) are defined as the measures by which the development, performance or position of the business can be measured effectively. The Group Board reviews the KPIs annually and updates them where appropriate.
* IFRS profit before tax attributable to equity holders
Over the three-year period ended 31 December 2014
* This worldwide index replaces the UK engagement index used in previous years
We include measures here which have not been determined to be KPIs by the Group Board, but which we use in deciding executive remuneration or other measures which we believe are integral to the group’s performance.
Figures are pre-accrual of proposed final dividend
Standard & Poor’s financial strength rating for Legal & General Assurance Society Limited
We’re reporting our 2014 results split between five businesses: LGAS, LGR, LGIM, LGC and LGA.
From 1 January 2015, LGAS has been replaced by two new segments. ‘Insurance’, covers retail protection, group protection, general insurance, France and the Netherlands. ‘Savings’ comprises ‘Digital Savings’ including our Cofunds and Suffolk Life businesses, as well as our ‘Mature Savings’ business. LGIM now includes our corporate pensions business.
Our reporting focuses on success across the group rather than segmental reporting. Making use of synergies of resources and objectives is fundamental to our success.
In future, our half year results and full year results will reflect this new operating structure.
* 2014 operating profit of £1,275m includes £1,483m from divisions, less £208m from group level investment projects, interest and expenses.
In 2014, LGAS was responsible for retail protection, group protection, general insurance, corporate pensions, individual pensions and platforms.
From 2015 LGAS will be replaced by two new segments:
Our Insurance business covers 1.8 million people in group protection schemes, over 3.8 million individual protection customers and 1.5 million general insurance customers.
Our savings business has assets of £124 billion, including around £72 billion of assets held on the Cofunds platform.
We have around 1 million customers and £44 billion of assets. Our corporate business, with £29 billion of assets, helps companies de-risk corporate pension schemes with buy out, buy-in and longevity insurance arrangements. Our individual retirement business helps turn customers’ pension savings into retirement income.
Our asset management business with £709 billion of total assets, manages investments on behalf of institutional and retail customers. We are the largest manager of UK pension fund assets, with over 3,000 schemes and have a growing international footprint. From 2015, LGIM is additionally responsible for managing the majority of our workplace pensions business, helping over 1.2 million people save for retirement.
Our purpose is increasing the risk adjusted returns on the group’s £57 billion principal balance sheet. Increasingly, we seek out attractive direct investments which have a long investment horizon. In this way we can leverage the benefits of the group’s solvency margin.
We’re a top three US protection provider. We have over 1 million customers and wrote over $1.1 billion in premiums in 2014. We focus on providing term life protection products to individuals through concentrating on underwriting expertise and excellence in customer service.
The world is getting greyer
By 2030 there could be 20 million over 60s in the UK (27% of the population).
Maintaining global leadership in pensions derisking and providing a suite of retirement income products
The cost of welfare payments
Despite an austerity programme, the UK state deficit for 2014 stood at £97 billion.
Helping people achieve security affordably through insurance and workplace pensions
Fast money, Slow money
The UK needs to build at least 250,000 homes a year to meet the nation’s housing demand.
Using ‘slow money’ to become the UK leader in direct investments, including housing
Homogenous asset markets
The combined North American and Asian investment markets are eight times bigger than the UK’s.
Building a world class international asset management business
The connected world
52% of all internet traffic to retail websites is now via smartphones or tablets.
Achieving market leadership in digital provision of insurance, retail investments and personal pensions