LGIM profits sink a fifth as pensions prop up Legal & General results

Flows swing negative

Operating profits fell 19% at Legal and General Investment Management, as increasing rates and net outflows hit the business. Meanwhile, overall profits at Legal and General Group remained flat, largely thanks to the firm’s pensions arm.

According to its full year 2023 results, operating profits for the investment arm dropped to £274m, down from £340m the previous year, while Legal & General Retirement Institutional, focused on defined benefit pensions across the UK, US, Canada and the Netherlands, enjoyed a 10% rise in profits, up to £886m from £807m. LGIM proposes open-ended property fund restructure to hybrid model L&G Retail and L&G Capital, focused on workplace savings and alternative assets, respectively, remained largely flat year-on-year. The group pointed to the "ongoing impact of higher interest rates" to...