Legal & General Group (LGEN) is one of the largest financial services companies in the UK. It operates in asset management, institutional retirement, and retail. The group manages more than three hundred billion pounds in UK retail wealth and holds leading positions in Workplace pensions, retail annuities, and lifetime mortgages. The business serves more than twelve million customers across the country.
Find out what a stock’s really worth in under 60 seconds with TIKR’s new Valuation Model (It’s free)
The company is working through a strategy focused on three goals. These goals are sharper focus, sustainable growth, and enhanced returns. Management is aligning the business around DC pensions and retirement income. These markets continue to expand as individuals take more responsibility for long-term savings and as UK demographic trends shift toward older age groups.
Legal & General is also adjusting its operating model. It is reducing the size of the Corporate Investments Unit, selling its US Protection business, and driving cost efficiencies across the group. This creates a simpler organisation that can focus more on core markets and high-quality earnings.
Quickly value any stock with TIKR’s powerful new Valuation Model (It’s free!) >>>
Financial Story
Management expects core operating EPS to grow by 6 to 9 percent in 2025. Current progress suggests that results will land near the higher end of that range. The company also plans to return more than five billion pounds to shareholders over the next three years. These targets reflect visible profit streams from DC pensions, retail annuities, and asset management.
| Metric | Value | Comment |
|---|---|---|
| Workplace DC AUM | £205B | More than twelve percent CAGR since 2020 |
| Retail customers | 12.4M | Broad distribution coverage |
| DC net flows YTD | £5B | Strong retention and new scheme wins |
| Retail annuity volumes FY24 | £2.1B | #1 open market provider |
| Lifetime mortgage portfolio FY24 | £7B | Third largest in the UK |
| Workplace retention | 99 percent | Stable long term customer base |
| Stable long-term customer base | 75 percent | Target below 50 percent by 2028 |
Asset Management is improving after a difficult period. Revenue margin has risen to nine basis points, and the company aims for a double-digit margin by 2028. Annualised net new revenue is trending toward one hundred to one hundred fifty million pounds by 2028. New private market funds, stronger retail flows, and improvements in Workplace investment accounts support the growth.
Institutional Retirement remains strong. UK Pension Risk Transfer volumes reached more than £10 billion year to date. The market remains active, and Legal & General continues to hold a leading share. The company is using this strength to fund long-term growth in retail annuities and blended retirement solutions.
Look up Legal & General‘s full financial results & estimates (It’s free) >>>
Broader Market Context
The UK retirement market is growing steadily. DC assets are expected to reach 1.5 trillion pounds by 2034. Retail decumulation flows are also expected to more than double. This creates a long runway for firms with scale and strong customer ties. Legal & General already operates the largest commercial master trust in the UK and manages more than £ 200 billion in DC investments.
Structural trends support long-term growth. These trends include greater interest in guaranteed income, new regulatory guidance, and rising interest in blended retirement arrangements. Technology is increasing the speed of advice journeys and improving customer engagement. These conditions help the company capture more assets at retirement and increase lifetime value per customer.
1. Workplace Scale Creates a Strong Growth Engine
Legal & General holds a leading position in Workplace pensions. Workplace customers reached 5.2 million in 2025. Pot sizes for customers approaching retirement are rising at a fast pace. Net flows remain strong with more than five billion pounds added year to date. The group expects more than forty billion pounds of net flows from 2024 through 2028. These flows support consistent growth in fee-based earnings.
The workplace is also a core channel for customer acquisition. About ninety percent of Retail customers originate from Workplace relationships. The company retains more than ninety-five percent of Workplace DC assets in-house. This gives Legal & General a reliable source of long-term fee income and a strong base for future annuity and drawdown conversions.
2. Retail Annuities and Lifetime Mortgages Strength Earnings Quality
Legal & General is the number one open-market provider of Retail annuities. Retail annuity volumes grew from 900 million pounds in 2020 to 2.1 billion pounds in 2024. Higher interest rates have made annuities more attractive, and the company expects to capture a larger share of the $20 billion annuity market projected for 2034. The annuity book has a strong match between assets and liabilities, supporting stable, long-term cash flows.
Lifetime mortgages add another source of returns. The portfolio reached £7 billion in 2024. These assets help back annuities and provide a steady stream of long-dated cash flows. The equity release market continues to grow, and Legal & General remains a major player. This strengthens the company’s ability to originate long-duration assets that match its retirement liabilities.
Value stocks like Legal & General’s in less than 60 seconds with TIKR (It’s free) >>>
3. Building Operating Leverage Through Technology and Data
Legal & General is investing in technology to boost efficiency. Digital engagement across Workplace and Retail channels creates more consistent retention outcomes. The hybrid guidance model helps customers transition from accumulation to retirement with fewer gaps. These improvements increase the conversion rate to annuities and drawdowns.
Cost efficiency is also improving. The Workplace cost-income ratio is expected to fall from roughly 75% today to below 50% by 2028. Retail and related Asset Management operating profit is expected to triple over the same period. These gains increase operating leverage and help support the company’s target of four to six percent profit growth from 2024 through 2028.
The TIKR Takeaway
Legal & General is shaping itself into a company built around DC pensions, at-retirement products, and fee-based asset management. These areas offer long-duration earnings with less volatility than past segments. Customer retention is strong, and Workplace continues to expand. Retail annuities and lifetime mortgages bring stable long-term cash flows.
The strategy relies on scale, efficiency, and deeper integration across Retail and Asset Management. Early results show rising revenue margins, stronger flows, and better cost control. If these trends continue, Legal & General can meet its goal of accelerating profit growth beyond 2028. The company has a clear path to a more predictable earnings mix.
Should You Buy, Sell, or Hold Legal & General‘s Stock in 2025?
Legal & General delivers steady cash generation and holds leadership positions in several growing UK retirement markets. The earnings outlook is positive, supported by DC flows and annuity growth. The shares remain a stable holding for investors who want predictable returns and exposure to long-term retirement themes. The key watch points are execution on cost reduction and continued momentum in Workplace flows.
How Much Upside Does Legal & General Stock Have From Here?
With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.
All it takes is three simple inputs:
- Revenue Growth
- Operating Margins
- Exit P/E Multiple
If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.
From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.
Estimate a company’s fair value instantly (Free with TIKR) >>>
Looking for New Opportunities?
- See what stocks billionaire investors are buying so you can follow the smart money.
- Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
- The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
