Legal & General on Thursday announced new growth targets for its UK retail business, aiming to capitalize on a shifting retirement landscape.
The British insurer said it is targeting between 40 billion and 50 billion British pounds in net flows for its workplace pension business from 2024 to 2028.
Over the same period, the company aims for a 4% to 6% compound annual growth rate in retail operating profit.
The strategy is designed to take advantage of structural changes in the UK, where responsibility for retirement savings is increasingly shifting from employers to individuals, the company said.
Legal & General projects that total UK workplace pension assets will double to 1.5 trillion British pounds by 2034, with annual retail annuity volumes growing to 20 billion British pounds.
The company also expects fee-based earnings to constitute 40% of its retail profits by 2034, up from less than 15% in 2024.
In a trading update, the company said its institutional retirement business has written or is exclusive on 11 billion British pounds of pension risk transfer deals year-to-date.
The retail division has written over 1.2 billion British pounds in individual annuities and recorded 5 billion British pounds in workplace pension net flows so far this year.
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