Legal & General’s institutional retirement arm is weighing a sizeable shift in its infrastructure debt exposure. Portfolio manager Roman Hederer says the asset class now offers more opportunities and value, especially across Europe, than it did a few years ago. The insurer could lift its allocation from the current 16 percent to roughly 20 percent of its annuities portfolio over a multi‑year horizon meet targets.

That move would add roughly £4 billion of infrastructure debt to L&G’s £93 billion annuities book, a scale that could reshape the firm’s risk‑return profile. Investors have been gravitating toward long‑dated, inflation‑linked projects, and the insurer’s pension clients increasingly demand stable, real‑asset returns. Raising the share signals confidence in European pipeline deals for the firm’s long‑term liabilities.

The proposed increase also puts L&G in line with peers such as Macquarie and Blackstone, which already allocate near‑quarter portions of their portfolios to infra debt. If the insurer follows through, the added exposure could boost demand for mid‑market issuers and drive up pricing on new projects. The shift underscores a broader trend toward real‑asset diversification in pension funds and strengthen its ESG credentials.