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TODAY'S OTHER NEWS

Legal & General invests in Australian lifetime mortgage business

Legal & General has acquired a 20% stake in the Australian lifetime mortgage business, Household Capital, through its ‘Retail Retirement’ division (LGRR).

Household Capital is a specialist retirement funding provider which offers long-term access to home equity, helping retired Australians ‘live well at home’ and creating a balance between lifetime savings and at-retirement pension income.

Unlocking housing equity can help top-up pension plans, increase retirement income, fund social care and support the transition to retirement.

Legal & General’s investment – the largest in the Melbourne-based company’s ‘Series B’ funding round and its first by a non-domestic, multi-national investor – will be used to underpin Household Capital’s corporate growth and build on the success that the business has had since launching in 2017.

A leading provider of insurance, annuities and lifetime mortgages in the UK, as well as a global asset manager with close to £1.2 trillion in assets under management, Legal & General aims to help institutions and individuals in all phases of pension and retirement planning.

Household Capital’s focus on home equity funding – in the context of pensions, superannuation and other relevant aspects of the universal retirement opportunity – is closely aligned with Legal & General’s commitment to helping customers better understand their pension saving and retirement income options.

Chris Knight, chief executive officer at Legal & General Retail Retirement, says the move reflects the company’s commitment to improving the opportunities available to everyone at retirement, regardless of where they may be.

He says: “We’re looking forward to working together to help grow the scale of the business so that consumers have better options at this critical life stage.”

Joshua Funder, chief executive offer at Household Capital, adds: “Legal & General’s strategic investment shows when it comes to tackling the challenge of our burgeoning retirement-age population, global investors see Australia as a significant market opportunity.”

“We’re excited to have an investor on board who recognises that Household Capital is an innovator in home equity retirement funding with a clear values-based focus on customer outcomes.”

Nick Sherry, chair at Household Capital and former Australian federal Minister for Superannuation, comments: “It is a myth that Australians downsize. They want to continue to live in their homes and in their community. Drawing down part of the capital in their household can help many retirees achieve their objectives and maintain a good lifestyle. Our investors know that growth in home equity retirement funding is not only necessary – it’s inevitable.”

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