The chief executive of Legal and General Investment Management will step down as the firm announces a strategy overhaul.
A search for a replacement for Michelle Scrimgeour has now started.
The new strategy, released today (June 12), includes a redesign of the asset management department with a merger of LGIM and Legal and General Capital.
It said the pair will come together as a "unified, global, public and private markets asset manager".
This is part of an ambition to deliver operating profit of £500-600mn by 2028 and grow its private markets platform AUM to £85bn by the same time, up from £48bn at full year 2023.
The announcement also said the first step of the plan to increase returns for shareholders was for a £200mn share buyback.
Group CEO, António Simões said the aim of the new strategy is to create a simpler company with three core business divisions.
Simões said: "Over the last five months we have rigorously reviewed our business, listening to investors, customers, partners and employees. This work has deepened my belief in our strong foundations and excellent potential.
"L&G is in prime position to respond to and benefit from major structural and societal changes.
"Changing demographics, climate transition, economic uncertainty and technology are driving demand for trusted, experienced investors that can manage risk through the cycle, originate productive assets, and deliver returns for savers."
The other two divisions the firm will focus on are retirement and retail.
In retirement, the group said it is well placed to seize on opportunities in the UK and abroad.
It wants to grow its institutional operative profits by up to 7 per cent and write between £50-65bn of UK pension risk transfers by 2028.
Simões added: "We will make the most of our international business opportunities, with a particular focus on the US. The strategy and targets set out today signal L&G’s ambition and commitment to invest to grow our business, and reward our shareholders for their support."
In the retail department, the firm wants to see growth in retirement and savings and said it will make investments in the area to do this.
It said it will use technology and AI to support this growth and will focus scaling its workplace platform profitably.
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com.
