TEMPUS

LGIM: charting the progress of a prize asset

Millions of people are being nudged into pension saving and LGIM is an obvious beneficiary
Millions of people are being nudged into pension saving and LGIM is an obvious beneficiary
ALAMY

The asset management division of Legal & General usually gets rather overshadowed in any assessment of Britain’s second biggest insurer. Legal & General Investment Management might be one of the biggest asset managers in Britain, with nearly a trillion pounds of assets under management, but in terms of profit generation it is still modest beside the retirement and annuities division.

L&G wants to change that perception, which explains why its capital markets event yesterday focused purely on LGIM.

The division has a strong story to tell. Over the past ten years it has produced compounded annualised growth in operating profits of 11 per cent, last year hitting the £400 million mark. A decade ago, LGIM was the 50th biggest asset manager in the world by