Legal & General 2024 SFCR reveals own funds of £16.2bn

Legal & General’s 2024 Solvency and Financial Condition Report shows Group surplus Own Funds of £9,028m and a Solvency Capital Requirement of £4,709m, implying a substantial solvency buffer for the year. The report, published on 4 April 2025, also confirms continued use of the Group Internal Model across key entities and a PRA waiver allowing a single SFCR for the Group and LGAS.

The year’s solvency disclosures sit alongside a new Group strategy built around three core divisions and a focus on sustainable growth, sharper focus and enhanced returns. Legal & General also reported 6% growth in core operating profit and core EPS for 2024, framing the solvency position against a backdrop of earnings expansion.

Capital position and Own Funds structure

For 2024, Legal & General Group plc reported surplus Own Funds of £9,028m, compared with £9,157m in 2023. The Group’s Solvency Capital Requirement stood at £4,709m, calculated using the approved Group Internal Model.

Within the Group, Legal and General Assurance (Pensions Management) Limited (LGIM’s insurance entity) states that its Own Funds are entirely comprised of unrestricted basic Tier 1 items, with no ineligible own funds for covering capital requirements. This composition means the entity does not rely on lower‑tier capital instruments to meet its SCR coverage. The Group Board confirmed that throughout the financial year to 31 December it complied in all material respects with PRA rules and Solvency II Regulations applicable to the firm. The Board statement sits alongside the Internal Model disclosures and the PRA waiver, anchoring the reported solvency position in the current UK regulatory framework.

Internal Model usage and regulatory waivers

Legal & General states that the SCR for both the Group and LGAS has been calculated using the Group‑approved Internal Model. Legal & General Assurance (Pensions Management) Limited also calculates its SCR using the L&G Group Internal Model, which has received the necessary regulatory approvals.

The Group has been granted approval under a waiver from the PRA to prepare a single SFCR that contains the required information for both the overall Group and LGAS. This waiver consolidates narrative and quantitative solvency disclosures for the Group and its main UK life entity into one report. Business growth and solvency context

At a Capital Markets Event on 12 June, Legal & General announced a new strategy to deliver sustainable growth, sharper focus and enhanced returns, with a vision of becoming a growing, simpler and better‑connected business focused on three core divisions. The 2024 SFCR is the first to sit fully alongside this strategic articulation, providing the solvency backdrop to the new divisional focus.

Legal & General reported 6% growth in core operating profit and core EPS for the full year, linking earnings growth with the solvency disclosures in the SFCR. The combination of surplus Own Funds of £9,028m and a Group SCR of £4,709m is reported in the context of both strategic repositioning and operating performance growth.

Reinsurance expansion within the Group

L&G Reinsurance executed a further mortality reinsurance transaction in 2024 with Banner Life Insurance Company, Legal & General Group’s main United States insurance subsidiary. Covered business added in 2024 related to new business insurance policies written in 2024 and six months’ worth of policies from 2012 and 2014.

This transaction increased the total face amount of L&G Reinsurance’s mortality business to $676bn, up from $557bn in 2023. The expansion of the reinsured mortality book is disclosed in the reinsurer’s Financial Condition Report, complementing the Group‑level solvency narrative in the SFCR.

Peer solvency disclosures

Phoenix Group reported Solvency II surplus over Group SCR of £3,515m as at 31 December, compared with £3,859m in 2023. VIG Insurance Group reported a statutory Solvency Capital Requirement of TEUR 3,989,106 and a Solvency II ratio of 260.7% as of the same reporting date. These peer figures provide additional context for the scale of Legal & General’s reported surplus Own Funds and SCR.

Legal & General’s 2024 SFCR, published in April 2025, therefore sets out a Group solvency position based on an approved Internal Model, a PRA waiver for single reporting of Group and LGAS, and continued regulatory compliance, against a backdrop of strategic refocusing and earnings growth. The next formal update to this solvency position will come with the 2025 SFCR, subject to any interim capital markets or regulatory disclosures.

--- Sources: Pending Research https://group.legalandgeneral.com/media/t5wlqtmq/legal-general-group-plc-sfcr-2024.pdf https://www.legalandgeneralre.com/asset/49889d/globalassets/reinsurance/_files/fcr/legal--general-re-financial-condition-report-2024.pdf