What is Customer Demographics and Target Market of Legal & General Group Company?

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Who are Legal & General Group's customers?

Understanding customer demographics and target markets is paramount for any financial services company, none more so than Legal & General Group, which has adapted its strategy in response to evolving societal and financial landscapes. A significant strategic overhaul, unveiled at a Capital Markets Event in June 2024, saw the company sharpen its focus on three core divisions: Institutional Retirement, Asset Management, and Retail, aiming for sustainable growth and enhanced returns.

This pivot underscores the critical importance of knowing precisely who their customers are, their changing needs, and how best to serve them. The company's recent financial performance, with core operating profit up 6% to £1,616 million in 2024 and core operating EPS up 9% in H1 2025, reflects the success of its customer-centric strategic adjustments.

Founded in 1836, Legal & General Group has evolved from its initial focus on traditional life assurance and annuities for a predominantly UK-based clientele to a global financial services institution managing £1.1 trillion in assets as of March 2025. Its current customer base is far more diversified, spanning individuals, corporates, and institutions across multiple geographies, offering a comprehensive range of products from pensions and life insurance to complex investment funds. This evolution necessitates a deep exploration of its contemporary customer demographics, geographical reach, and the sophisticated strategies it employs to acquire and retain these varied client groups. For a deeper understanding of the external factors influencing this market, consider the Legal & General Group PESTEL Analysis.

The company's customer base is primarily segmented into three core divisions: Institutional Retirement, Asset Management, and Retail, serving both individual consumers and businesses. This broad reach allows for diverse Legal & General customer demographics and a wide Legal & General target market.

Retail Segment (B2C)

This segment focuses on individual customers seeking personal financial solutions like life insurance, pensions, and savings. As of March 2025, the UK individual protection customer base stood at 5.4 million, with an additional 1.5 million in the USA. The Retail segment also administers Workplace Defined Contribution plans, serving up to 5.3 million members by H1 2024, with £101 billion in assets under administration by H1 2025.

Institutional Retirement Segment (B2B)

This division caters to Defined Benefit pension schemes, offering de-risking solutions such as buy-ins and buy-outs. In 2024, global Pension Risk Transfer volumes reached £10.7 billion across 56 deals, highlighting a significant market for corporate and public sector entities managing pension liabilities.

Asset Management Segment (B2B & B2C)

This segment provides investment management services to both institutional clients and retail investors. The company integrated its investment management arms in 2024 to enhance its international platform. Private Markets Assets Under Management are projected to grow to £85 billion by FY 2028, up from £57 billion in FY 2024.

Customer Profile Insights

The Legal & General customer profile varies across segments, from working individuals saving for retirement in the Retail division to large corporations in the Institutional Retirement segment. Understanding these distinct Legal & General customer segments is key to the company's strategy, as detailed in the Competitors Landscape of Legal & General Group.

Key Customer Characteristics

The company's customer base spans various age groups and financial needs, reflecting a broad appeal for its diverse product offerings.

• Retail customers range from working individuals to those planning for later-life care.
• Institutional clients are typically large corporations and public sector bodies.
• Asset Management clients include sophisticated investors and those seeking professional fund management.
• The company targets cumulative net flows of £40-50 billion in Workplace DC from 2024-2028.

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Legal & General's diverse customer base is united by a fundamental need for long-term financial security, risk management, and investment growth. Understanding these varied requirements is key to their strategy.

Retail Customer Focus

Retail customers prioritize retirement planning, family protection via insurance, and personal savings. They seek financial stability and peace of mind, with purchasing decisions influenced by life stage and trust.

Institutional Retirement Needs

Institutional clients, particularly those managing Defined Benefit pension schemes, aim to de-risk their obligations. They require robust, capital-efficient solutions backed by strong financial standing and expertise in pension risk transfer.

Asset Management Objectives

Asset management clients seek to achieve specific investment goals, access diversified portfolios including private markets, and engage with responsible investment solutions. Expertise, performance, and ESG alignment are crucial factors.

Preference for Guaranteed Income

The strong retail annuity sales in H1 2024 highlight a clear customer preference for guaranteed income streams, especially among those nearing or in retirement.

Addressing Complexity

The company addresses customer pain points related to the complexity of long-term savings through initiatives like its Workplace DC platform and a customer app designed for better engagement.

Evolving Investment Preferences

Market trends, such as the growth in defined contribution and decumulation assets, directly influence product development, leading to offerings like the L&G Private Markets Access Fund for UK DC investors.

Legal & General Customer Profile

Legal & General's customer segmentation analysis reveals distinct needs across its retail, institutional, and asset management client groups. The company's strategy is to cater to these varied demands for financial security, risk management, and investment growth, adapting its product development and service offerings accordingly.

• Retail customers, often influenced by life stage, seek retirement planning and protection products.
• Institutional clients prioritize de-risking pension liabilities with financially sound and expert solutions.
• Asset management clients look for performance, diversification, and ESG-aligned investment opportunities.
• The company's focus on simplifying savings and enhancing digital engagement reflects evolving customer preferences.
• Understanding Revenue Streams & Business Model of Legal & General Group is crucial for appreciating how these customer needs are met.

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Legal & General Group has a strong presence in the United Kingdom, its primary market, particularly for its institutional retirement and retail operations. The company is a leader in the UK Pension Risk Transfer (PRT) market, with projected average volumes of £45 billion annually over the next decade. In 2024, the UK PRT business saw £8.4 billion in new business, and by August 2025, the company had facilitated approximately one-third of the significant buy-ins exceeding £1 billion, more than any competitor.

UK Market Leadership

Legal & General is a dominant force in the UK's Pension Risk Transfer market, a key area for its institutional retirement business. The company's individual protection customer base in the UK reached 5.4 million lives in 2024, holding a 19% market share.

North American Expansion

The Group also has a significant and growing presence in North America, especially in the United States. In 2024, its US protection business served 1.5 million individual customers and achieved record volumes, ranking as the third-largest term insurance provider in the US.

International Asset Management

Internationally, Legal & General's PRT volumes reached a record £2.3 billion in 2024. Approximately half of the Group's £1.1 trillion in assets under management are international, underscoring its global reach and diversified investment strategy.

Strategic Localization

Customer demographics and preferences vary significantly across regions, necessitating localized approaches. The company is also exploring a partner model in the Netherlands, demonstrating its adaptability in new markets.

To effectively serve diverse customer bases, Legal & General tailors its marketing and product features. For instance, its strategic partnership in the US, which includes the sale of its US protection business while retaining an 80% economic interest in US PRT, exemplifies a localized strategy aimed at enhancing growth and co-investment in asset management. Further supporting its global private market asset under management growth, the company acquired a 75% stake in US-based Proprium Capital Partners, a real estate investment firm, indicating a focused expansion into specific high-growth sectors. This approach aligns with the broader Growth Strategy of Legal & General Group, which emphasizes targeted international expansion and strategic partnerships.

UK Pension Risk Transfer

Legal & General is a market leader in the UK PRT sector, with volumes expected to average £45 billion annually over the next decade.

US Protection Business

In 2024, the US protection business served 1.5 million individual customers and was the third-largest term insurance provider in the US.

International Assets

Approximately half of the Group's £1.1 trillion in assets under management are international, reflecting its global operational scale.

Market Share in UK Protection

In 2024, Legal & General held a 19% market share in the UK individual protection sector, serving 5.4 million lives.

US PRT Contribution

International PRT volumes reached a record £2.3 billion in 2024, with a significant portion from the US market.

Real Estate Investment

The acquisition of a 75% stake in Proprium Capital Partners enhances the Group's private market AUM globally, particularly in real estate.

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Legal & General employs a comprehensive strategy for acquiring and retaining customers, blending digital and traditional methods with strategic alliances. The company prioritizes customer lifetime value, aiming to build lasting relationships across its diverse product offerings.

Retail Customer Acquisition

The Retail segment focuses on strengthening its lifetime proposition by utilizing its expanding Workplace Defined Contribution (DC) platform. The company targets substantial cumulative net flows of £40-50 billion in Workplace DC between 2024 and 2028, highlighting employer-sponsored schemes as a key acquisition channel.

Institutional Retirement Acquisition

In Institutional Retirement, the strategy involves maintaining market leadership in Pension Risk Transfer (PRT). This is achieved through active pricing on new deals and capitalizing on a significant pipeline, with £17 billion in active deals and an additional £27 billion anticipated for 2025 in the UK.

Customer Retention Focus

Retention efforts are centered on business quality, meeting client needs, and delivering excellent customer support. This includes personalized communication and tailoring product features to enhance customer satisfaction and loyalty.

Value-Added Services for Retention

For protection clients, value is demonstrated through claims statistics and case studies. Tools like the reinstatement tool in OLP Connect help manage missed payments, reducing lapses. For UK group protection clients, 77% of employee group income protection claims were supported back into the workplace in 2024, showcasing the impact of health and wellbeing provisions.

The integration of customer data and technology is pivotal to these strategies. The company is leveraging technology and AI to boost efficiency and customer experience, particularly within its Protection businesses. The introduction of a customer app for long-term savings further signifies a commitment to personalized digital engagement. These strategic shifts, including a move towards capital-light, fee-generating businesses, are designed to cultivate long-term value for both shareholders and customers, aligning with the company's ongoing evolution as detailed in the Brief History of Legal & General Group.

Workplace DC Flows

Targeting £40-50 billion in cumulative net flows for Workplace DC from 2024-2028.

UK PRT Pipeline

£17 billion in active deals and £27 billion expected to transact in 2025 for UK Pension Risk Transfer.

Asset Management Synergy

81% of UK PRT new business premiums came from Asset Management clients over the last three years.

Protection Retention Tools

Utilizing tools like the reinstatement tool to manage missed payments and reduce policy lapses.

Workplace Support

77% of UK group income protection claims supported return to work in 2024.

Digital Engagement

Launch of a customer app for long-term savings to enhance personalized digital experiences.

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