Investing for the long-term

At L&G, we believe in the power of investing for the long-term. Our approach not only aims to generate returns for our shareholders but also to tackle inequality and make a positive impact on society. This article will explain how we invest the premiums paid to us through pension risk transfer transactions back into the real economy, ensuring that your pension savings contribute to a better future for all of us.

What is Pension Risk Transfer?

Pension risk transfer (PRT) is a process where companies transfer their pension scheme liabilities to an insurer like L&G. This helps companies manage their financial risks while ensuring that pension scheme members' benefits are secured. When we receive these premiums, we invest them in various projects that benefit the real economy.

Investing in housing projects

One of the key areas where we invest your pension premiums is in housing projects. The UK faces a significant housing shortage, and we are committed to addressing this issue. By investing in the construction of affordable and sustainable housing, we help provide better living conditions for people across the country. These investments not only generate returns but also create jobs and stimulate local economies.

Last year, we secured 487 affordable homes, created by Birmingham City Council in Perry Barr as part of the Commonwealth Games regeneration of the area. 

Regenerating towns and cities

We also invest in urban regeneration projects. Many towns and cities in the UK need revitalisation to boost their local economies and improve the quality of life for residents. Our investments in these areas help to create vibrant communities with better infrastructure, public spaces, and amenities. This, in turn, attracts businesses and residents, driving economic growth and development.

One of our city regeneration projects include Cardiff Central Square. Through this project, we're proud to have created over 10,000 jobs for local people. Watch our video.

Tackling climate change

Climate change is one of the most pressing issues of our time, and we are committed to playing our part in addressing it. We invest in businesses and projects that focus on renewable energy, energy efficiency, and other sustainable practices. By supporting these initiatives, we help reduce carbon emissions and promote a greener future. These investments also offer long-term financial returns, benefiting both our pension-holders and shareholders. So far, we've invested over £400 million into clean energy infrastructure and technology.

Together, we can build a better future for everyone.