Legal & General Group Update Summary Company Overview - **Company**: Legal & General Group (OTCPK:LGGN.F) - **Date of Briefing**: October 23, 2025 Key Points Industry and Market Position - Legal & General Group is a leader in the UK defined contribution and retirement platform, managing over £300 billion in assets within the UK retail wealth market [8][10] - The company holds a market share of approximately 25% in the defined contribution sector, with over £200 billion in assets under management (AUM) [8][10] - The UK retirement assets are projected to grow from £3.5 trillion to £5.5 trillion over the next decade, presenting significant growth opportunities for the company [8][9] Business Segments and Performance - **Institutional Retirement**: Achieved over £10 billion in written business in the UK, including significant transactions with BP (£1.6 billion) and another client (£4 billion) [5][10] - **Asset Management**: Increased annualized net new revenue to £29 million in the first nine months of the year, with private market AUM reaching £71 billion [6][10] - **Retail Business**: Focused on defined contribution and retirement, with a strong customer base of nearly 13 million [9][10] Strategic Priorities 1. **Sustainable Growth**: The company is on track to return over £5 billion to shareholders through dividends and share buybacks [4][10] 2. **Operational Improvements**: Disposed of 15 assets, reducing corporate investments from nearly £2 billion to £500 million [3][10] 3. **Technology Integration**: Emphasizing the use of technology to enhance customer experience and operational efficiency, including a collaboration with Microsoft for AI-driven improvements [31][64] Financial Projections - Retail operating profit is expected to grow by 4% to 6% per annum until 2028, driven by predictable earnings from annuities and protection [12][41] - The company anticipates tripling combined workplace profits by 2028, with significant contributions from asset management [41][42] - The annuity market is projected to grow to £60 billion annually by 2034, with Legal & General positioned to capture a significant share [12][38] Customer Engagement and Retention - The company has a 99% scheme retention rate in workplace pensions, indicating strong customer loyalty [11][19] - Plans to enhance customer engagement through digital tools and personalized support, addressing the advice gap in the market [30][56] Risks and Challenges - The company acknowledges potential challenges in maintaining growth rates, particularly in the context of changing market dynamics and interest rates [61][67] - There is a focus on ensuring that operational efficiencies are realized without compromising service quality [30][31] Conclusion - Legal & General Group is well-positioned to capitalize on the growing defined contribution and retirement markets, with a clear strategy focused on sustainable growth, operational efficiency, and customer engagement [27][41]

Legal & General Retail deep dive Highly Confidential Forward looking statements This document may contain certain forward -looking statements relating to L&G, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward -looking statements involve uncertainty because they relate to future events and circumstances which are beyond L&G's control, including, among others, UK domestic and global economic and business conditions, marke ...

Financial Data and Key Metrics Changes - Adjusted operating earnings for the first quarter of 2025 were $376 million, reflecting a 13% increase compared to the previous year [5][13] - Adjusted operating earnings per share rose over 20% year-over-year, reaching $5.2, up from $4.16 in the prior year's first quarter [6][16] - The estimated Risk-Based Capital (RBC) ratio increased to 585%, well above the minimum requirement of 425% [29] Business Line Data and Key Metrics Changes - Retail annuity sales exceeded $4 billion, marking a more than 9% increase from the previous year [7] - Sales of variable annuities grew by 9% year-over-year, totaling $2.7 billion, with a notable 40% increase in sales of variable annuities without living benefits [7][8] - Fixed and fixed indexed annuity sales showed meaningful growth, although at a moderated level compared to the second half of the previous year [9] Market Data and Key Metrics Changes - Advisory sales increased by 28% compared to the first quarter of 2024, with an annual run rate exceeding $1 billion [10] - The average retail annuity assets under management (AUM) rose to $246 billion, up from $242 billion in the first quarter of 2024 [19] Company Strategy and Development Direction - The company aims to maintain a disciplined approach to growth, focusing on both organic and inorganic opportunities, including potential acquisitions in the annuity business [38] - Jackson is committed to product innovation and expanding distribution channels, particularly through financial professionals at JPMorgan Wealth Management [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating market volatility, emphasizing the importance of providing security to Americans planning for retirement [11][33] - The company remains focused on delivering flexible protection and income-oriented solutions, which are increasingly valued during uncertain market conditions [12] Other Important Information - The company returned over $230 million to common shareholders in the first quarter, with a cash dividend of $0.80 per share approved for the second quarter [10][11] - The hedging program reported a consolidated net hedge loss of $134 million, but the overall strategy has provided stability in capital generation [20][22] Q&A Session Summary Question: Interest in acquiring in the annuity business - Management acknowledged past successful acquisitions and stated that future opportunities would be evaluated against the value of share buybacks or balance sheet strengthening [38] Question: Strategy regarding spread-based products - Management indicated that they are actively evaluating competitiveness and pricing strategies while maintaining discipline in their approach to spread products [41] Question: Fee-based advisers selling more annuities - Management highlighted the importance of providing choice to advisers and the growth of modeling and financial planning tools that support both fee-based and commission structures [50]