Legal & General targets £600 mln operating profit by 2028

Legal & General Group PLC projects its asset management operating profit to reach £500-600 million by 2028, representing a 6-10% compound annual growth rate from 2024. The company anticipates fee-related earnings will comprise 70-75% of its asset management business by 2028 and aims to grow private markets assets under management to over £85 billion. Legal & General also forecasts a 6-9% growth in core operating earnings per share for 2025 as part of its strategic roadmap for growth.

Analysis

Legal & General Group PLC (LGEN) has presented a detailed asset management outlook through 2028, projecting operating profit to reach between £500 million and £600 million, which translates to a compound annual growth rate (CAGR) of 6-10% from 2024. The company aims for fee-related earnings to comprise 70-75% of its asset management business by 2028, indicating a strategic focus on a more predictable revenue stream. A significant part of this strategy involves expanding its private markets segment, with a target to grow assets under management in this area to over £85 billion by 2028. In the shorter term, Legal & General forecasts 6-9% growth in core operating earnings per share for 2025. These projections, part of the company's broader strategic roadmap, underscore its ambitions for growth across various business segments over the coming four years, an outlook that has been met with strongly positive sentiment according to associated data signals.

Key Decisions for Investors

• Investors should assess Legal & General's defined growth trajectory, particularly the 6-10% CAGR target for asset management operating profit and the ambitious goal of exceeding £85 billion in private markets AUM by 2028.
• The projected 6-9% core operating EPS growth for 2025 serves as a key near-term performance benchmark to monitor progress against the company's strategic plan.
• Consider the potential for these long-term strategic initiatives to enhance LGEN's profitability and market share in asset management, while also factoring in the execution risks associated with multi-year financial targets.