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Unveiling Legal & General's Customer Landscape: Who Are They?
In the complex world of financial services, understanding customer demographics and target markets is crucial for sustained success. Legal & General, a leading UK financial institution, has strategically evolved its approach over nearly two centuries. This analysis dives deep into Legal & General's customer base, exploring their profile and how the company tailors its services. The company's strategic realignment underscores its commitment to adapting to evolving market needs.
This exploration of Legal & General Group SWOT Analysis will examine the company's insurance customers, investment clients, and retirement solution users. We will uncover who Legal & General's target customers are, including their age range, income levels, and location data. Furthermore, the analysis will shed light on Legal & General's customer buying behavior and preferences to understand their needs better and how L&G strategically acquires and serves them. This will provide a comprehensive Legal & General customer profile analysis.
Who Are Legal & General Group’s Main Customers?
Understanding the customer demographics and target market of Legal & General (L&G) is crucial for grasping its business strategy. L&G operates across three main divisions: Institutional Retirement, Asset Management, and Retail, each serving distinct customer segments. This diversified approach allows L&G to cater to a broad range of financial needs, from institutional clients to individual consumers.
The company's ability to adapt and meet the evolving demands of its customers is evident in its recent strategic shifts, such as the merging of Legal & General Investment Management (LGIM) and Legal & General Capital (LGC) in June 2024. This move reflects a commitment to providing comprehensive financial solutions. L&G’s strong performance in 2024, particularly in areas like Retail Annuities and Workplace DC, highlights its success in targeting and serving its key customer segments.
To further explore L&G's customer base, we can examine each division's primary customer segments and how L&G tailors its products and services to meet their specific needs. This analysis provides insights into the company's market positioning and customer acquisition strategies.
Institutional Retirement Customers
The Institutional Retirement division primarily serves businesses. L&G focuses on worldwide pension risk transfer (PRT) opportunities. This involves taking on defined benefit pension plans from companies, helping them manage their pension liabilities.
Asset Management Customers
The Asset Management division caters to both institutional and retail clients. This segment manages a substantial portfolio of assets, focusing on providing responsible investment solutions. L&G aims to grow its private markets platform assets under management to £85 billion by FY 2028.
Retail Customers
The Retail division primarily serves individual consumers (B2C). It offers retail annuity and drawdown products, workplace savings, and lifetime mortgage loans. This segment partners with customers throughout their lifetimes, from workplace pension enrollment to retirement.
Key Products and Services
L&G provides a wide array of financial products and services. These include PRT solutions, asset management services, retail annuities, workplace savings plans, and protection products. The company's diverse offerings cater to the varied needs of its customer base.
Key Financial Highlights and Customer Insights
In 2024, L&G demonstrated strong financial performance. The company wrote £10.7 billion in global PRT, with £8.4 billion in the UK. Retail operating profit increased by 12% to £504 million, driven by record sales in Retail Annuities, which saw sales of £2.1 billion (up 48%). The Workplace DC business continues to grow with net flows of £6.0 billion and 5.5 million members. L&G's focus on customer needs and market trends has driven its success.
- Institutional Retirement: Businesses seeking to transfer pension risk.
- Asset Management: Institutional and retail clients looking for investment solutions.
- Retail: Individual consumers needing retirement, savings, and protection products.
- Customer Acquisition: L&G uses various channels, including partnerships, direct sales, and digital platforms.
For a deeper understanding of how Legal & General generates revenue and structures its business model, you can explore the Revenue Streams & Business Model of Legal & General Group.
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What Do Legal & General Group’s Customers Want?
Understanding the customer needs and preferences is crucial for any financial services company. For Legal & General, this involves catering to a diverse customer base with varying financial goals. This analysis explores the key drivers behind customer decisions and how the company aligns its offerings to meet these needs.
Legal & General's customers are primarily driven by the need for long-term financial security, risk management, and wealth accumulation. These needs span different life stages, with a significant focus on retirement planning. The company's product portfolio, encompassing insurance, investment management, and retirement solutions, is designed to address these diverse requirements effectively.
The company's customer base is segmented into institutional, asset management, and retail clients. Each segment has distinct needs and preferences, which Legal & General addresses through tailored products and services. Understanding these specific demands is vital for the company's strategic planning and market positioning.
Institutional Retirement
Institutional clients, mainly businesses, are driven by the need to de-risk their defined benefit pension schemes. They seek reliable partners to transfer pension liabilities and secure benefits for their employees. The demand for these solutions is evident in the strong pipeline of pension risk transfer (PRT) deals.
Asset Management Clients
Asset management clients, both institutional and retail, look for diversified investment opportunities and responsible investment solutions. There is a growing preference for higher fee margin products and access to private markets. ESG factors are also increasingly important to these clients.
Retail Customers
Retail customers, including individuals and families, prioritize saving for the future, managing financial risks, and planning for retirement. The demand for retirement planning and savings products is significant. Legal & General aims to strengthen its lifetime retail proposition and improve member engagement.
Customer Needs
Key customer needs include long-term financial security, risk management, and wealth accumulation. These needs are addressed through various products and services, including insurance, investment management, and retirement solutions. The company focuses on meeting these needs across different life stages.
Customer Preferences
Customer preferences vary across segments, with institutional clients seeking de-risking solutions, asset management clients preferring diversified and responsible investments, and retail customers focusing on retirement planning and financial security. ESG considerations are gaining importance.
Market Trends
Market trends include the growing demand for PRT deals, the increasing interest in private markets, and the rising importance of ESG factors. These trends influence Legal & General's strategic decisions and product development. The company is adapting to meet these evolving market dynamics.
The Institutional Retirement segment sees businesses seeking to de-risk their defined benefit pension schemes. The strong pipeline of PRT deals, with £10.7 billion in global PRT written in 2024, highlights this demand. In the Asset Management segment, clients seek diversified investment opportunities and responsible investment solutions. Retail customers focus on saving for the future and retirement planning. The growth in Retail Annuities sales, up 48% in 2024, and the expansion of the Workplace DC business with 5.5 million members show this trend. The company also addresses pensions inequalities, including the ethnicity pensions gap in the UK, and has launched a Shariah-compliant investment proposition. For more insights, you can read an article about the Legal & General Group customer demographics and target market.
Key Customer Needs and Preferences
Understanding the specific needs and preferences of each customer segment is critical for Legal & General's success. Here’s a breakdown:
- Institutional Clients: Primarily focused on de-risking pension schemes through PRT deals.
- Asset Management Clients: Seeking diversified investment options, responsible investment solutions, and access to private markets.
- Retail Customers: Prioritizing retirement planning, financial security, and risk management through insurance and savings products.
- ESG Integration: Growing importance of Environmental, Social, and Governance factors across all segments.
- Product Innovation: Launching new initiatives like the Private Markets Access Fund and the Retail App to meet evolving customer needs.
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Where does Legal & General Group operate?
The geographic market presence of Legal & General Group (L&G) is primarily centered in the UK, with a growing international footprint, especially in North America. L&G's strategic focus involves expanding its reach in the US and Canada, while maintaining a strong base in the UK. This expansion is supported by significant investments and partnerships aimed at increasing its global market share.
The UK remains a core market for L&G, particularly for its Institutional Retirement and Retail divisions. The company is capitalizing on the mature UK pension risk transfer (PRT) market. L&G's international operations, especially in North America, are experiencing substantial growth, driven by PRT business opportunities and asset management activities. The company's strategic initiatives include expanding its private markets platform and forming partnerships to enhance its global presence.
L&G's international strategy is focused on the US market, where it has achieved record volumes in PRT. The company's asset management division also contributes significantly to its international presence, managing a substantial portion of its assets under management (AUM) globally. Recent expansions and strategic alliances indicate L&G's commitment to strengthening its position in key international markets.
UK Market Dominance
The UK is a core market for L&G, especially for its Institutional Retirement and Retail divisions. In 2024, L&G wrote £8.4 billion of UK PRT. The company is well-positioned to capitalize on the UK PRT market, with a guidance of £50 billion to £65 billion of UK pension risk transfers between 2024 and 2028. This highlights the importance of the UK market for L&G's business.
North American Expansion
L&G has made significant strides in North America, particularly in the US and Canada. In 2024, the company wrote £2.3 billion in international PRT. The US PRT business had its largest year on record in 2024, completing $2.2 billion of business. The US PRT market is projected to exceed $50 billion by the end of 2024.
Asset Management's Global Reach
L&G's Asset Management division has a substantial international presence, with approximately 44% of its £1.1 trillion total AUM managed internationally. The company is focused on driving growth in public markets and scaling its in-house and origination platform capability in private markets across real estate, private credit, and infrastructure globally. This division plays a crucial role in L&G's global strategy.
Strategic Partnerships and Investments
L&G has formed strategic partnerships and made investments to expand its global presence. In May 2025, L&G deepened its collaboration with Landsvirkjun through a $50 million renewable energy investment. In February 2025, L&G announced a strategic partnership with Meiji Yasuda Life Insurance, which includes a partnership in the US Pension Risk Transfer business and Meiji Yasuda planning to acquire a roughly 5% stake in Legal & General, deepening the corporate relationship.
L&G's geographical market presence is a key factor in understanding its customer demographics and target market. The company's focus on the UK and expansion into North America, along with its global asset management activities, shapes its Competitors Landscape of Legal & General Group. This strategic approach allows L&G to serve a diverse customer base across various financial services, including insurance customers and those seeking financial services.
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How Does Legal & General Group Win & Keep Customers?
Legal & General's approach to acquiring and retaining customers is multifaceted, focusing on strategic alliances, digital innovation, and long-term value creation. This strategy is designed to build lasting relationships with its diverse customer base. The company leverages various channels to reach its target market, ensuring a comprehensive approach to customer engagement.
For customer acquisition, Legal & General utilizes its strengths in the Institutional Retirement segment, particularly in pension risk transfer (PRT). In the Retail segment, the company is expanding its Workplace Defined Contribution (DC) platform to attract new customers. This dual approach allows Legal & General to cater to different segments of the market, ensuring a broad reach and sustainable growth.
Customer retention is a key focus, with Legal & General aiming to provide personalized experiences and build long-term relationships. Investment in technology and a commitment to responsible investing are central to this strategy. The company's financial performance in 2024 demonstrates the effectiveness of these strategies, highlighting its commitment to customer-focused initiatives.
Institutional Retirement Acquisition
Legal & General leverages its strong position in the pension risk transfer (PRT) market for customer acquisition. The Asset Management division provides a pipeline of 'PRT ready' clients. Strategic partnerships, such as the one with Meiji Yasuda announced in February 2025, support growth in US pension risk transfer and asset management.
Retail Segment Acquisition
The Workplace Defined Contribution (DC) platform is a key tool for acquiring customers in the Retail segment. Legal & General targets £40-50 billion of cumulative net flows in Workplace DC between 2024 and 2028. Investment in the Workplace proposition includes new digital tools and at-retirement guidance.
Customer Retention Strategies
Legal & General focuses on strengthening lifetime propositions and providing personalized experiences. The company aims to partner with customers throughout their lives, supporting their savings, protection, and retirement planning. Technology investments, like the ATOM platform, enable real-time analysis for better customer service.
Financial Performance and Investment
In 2024, Legal & General's core operating profit increased by 6% to £1,616 million. The Solvency II coverage ratio was 232%, demonstrating financial resilience. The company plans to return over £5 billion to shareholders between 2025 and 2027 through dividends and buybacks, including a £500 million buyback announced in March 2025.
Legal & General's customer acquisition and retention strategies are crucial for its long-term success. The company's focus on strategic partnerships, digital innovation, and customer-centric solutions positions it well within the financial services industry. For more insights into the company's broader strategic direction, consider reading about the Growth Strategy of Legal & General Group.
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