Legal & General lays out plans to grow asset management business

(Sharecast News) - Legal & General outlined plans on Tuesday to significantly grow its asset management business, describing it as a core engine of group-wide growth with untapped potential, as part of a dedicated investor event focused on the unit.

The FTSE 100 UK financial services group said it was aiming to deliver between £500m and £600m of operating profit from asset management by 2028, representing compound annual growth of 6% to 10% from 2024.

It was expecting 70% to 75% of earnings to be fee-based by then, while the cost-income ratio was forecast to fall below 70%.

The company said it saw rising global demand for retirement solutions and increasing internationalisation as key tailwinds.

Legal & General is the UK's largest asset manager, with around £1.1trn in total assets under management, with the board saying it is well-positioned to expand its offerings to a broader client base across public and private markets.

It was planning to grow private markets AuM to more than £85bn by 2028, up from £57bn in 2024.

The group was also expecting cumulative annualised net new revenue (ANNR) of £100m to £150m between 2025 and 2028, with higher revenue margins supported by flows from its workplace defined contribution and annuity businesses.

Those inflows were expected to offset the structural decline of the UK defined benefit market.

Legal & General said it was targeting an improvement in average fee margins to double digits by 2028, from eight basis points in 2024.

The firm reaffirmed that it had made a strong start to 2025 and remained on track to meet its three-year strategic objectives.

Group core operating earnings per share were expected to grow by 6% to 9% this year.

At 0858 BST, shares in Legal & General were down 1.29% at 253.1p.

Reporting by Josh White for Sharecast.com.

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