Fannie Mae vs Legal & General: Revenue, Profit and Business Model
Fannie Mae had $29.4B of annual revenue in FY2024 and $17.4B of net income. Legal & General had ~$18.7B of annual revenue in FY2024 and ~$2.3B of net income.
Latest financial snapshot
Fannie Mae
- Latest annual revenue
- $29.4B (FY2024)
- Net income
- $17.4B
- Net margin
- 59.2%
- Revenue growth
- +2.6% a year, FY2015–FY2024
Legal & General
- Latest annual revenue
- ~$18.7B (FY2024)
- Net income
- ~$2.3B
- Net margin
- 12.3%
- Revenue growth
- +1.9% a year, FY2015–FY2024
Financial summary
Fannie Mae
Fannie Mae's financial results reflect the extraordinary cash-generating power of its $4.1 trillion guaranty book. In fiscal year 2024, Fannie Mae reported total net revenue of $28.50 billion (driven primarily by $25.2 billion in net interest income and guaranty fees) and net income of $17.40 billion. Under the terms of the 2019 letter agreement modifying the Senior Preferred Stock Purchase Agreement with the US Treasury, Fannie Mae is permitted to retain all quarterly earnings rather than sweep them to the US Treasury, allowing the enterprise to build its net worth toward capital requirements established under the Enterprise Regulatory Capital Framework (ERCF). By the end of 2024, Fannie Mae's retained net worth buffer approached $100 billion, providing an enormous cushion of private loss-absorbing capital to shield US taxpayers from potential housing downturns.
Legal & General
Legal & General maintains one of the strongest, most dependable financial architectures in international finance. In fiscal year 2024, L&G reported consolidated revenue of £14.20 billion and operating profits of £1.75 billion. Its Solvency II shareholder capital coverage ratio stands at an extraordinary 223%, representing over £9.0 billion in excess regulatory capital above Bank of England requirements. Because its pension liabilities are matched with precision against long-term, high-quality fixed income and infrastructure debt, L&G is largely immunized against equity market crashes. L&G is celebrated across the City of London as one of the FTSE 100's premier dividend compounders, offering an attractive dividend yield typically between 8.0% and 9.5%, supported by an unbroken 15-year record of annual dividend growth.
Revenue and profit by year
Fannie Mae
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | $29.4B | $17.4B | 59.2% | +1.9% | |
| FY2023 | $28.8B | $17.4B | 60.4% | -2.8% | |
| FY2022 | $29.7B | $12.9B | 43.6% | -0.8% | |
| FY2021 | $29.9B | $22.2B | 74.2% | +18.3% | |
| FY2020 | $25.3B | $11.8B | 46.7% | +10.5% | |
| FY2019 | $22.9B | $14.2B | 61.9% | -4.5% | |
| FY2018 | $23.9B | $16B | 66.7% | +3.9% | |
| FY2017 | $23B | $2.5B | 10.7% | +3.3% | |
| FY2016 | $22.3B | $12.3B | 55.2% | -4.2% | |
| FY2015 | $23.3B | $11B | 47.1% | — |
Legal & General
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2024 | ~$18.7B | ~$2.3B | 12.3% | +5.6% | |
| FY2023 | ~$17.7B | ~$2.2B | 12.4% | -1.9% | |
| FY2022 | ~$18.1B | ~$3.3B | 18.4% | -12.7% | |
| FY2021 | ~$20.7B | ~$3B | 14.4% | +7.2% | |
| FY2020 | ~$19.3B | ~$2.9B | 15.1% | +0.4% | |
| FY2019 | ~$19.3B | ~$2.8B | 14.6% | +4.8% | |
| FY2018 | ~$18.4B | ~$2.5B | 13.7% | +2.6% | |
| FY2017 | ~$17.9B | ~$2.4B | 13.3% | +5.4% | |
| FY2016 | ~$17B | ~$2.1B | 12.4% | +7.8% | |
| FY2015 | ~$15.8B | ~$1.9B | 12.2% | — |
Where the revenue comes from
Fannie Mae
- Single-Family Guaranty Fees72.0%
Contractual ongoing guaranty fees paid by mortgage lenders to guarantee timely principal and interest on 30-year and 15-year residential mortgages.
- Multifamily Guaranty Fees15.0%
Credit enhancement and Delegated Underwriting and Servicing (DUS) revenue sharing on workforce, affordable, and student apartment properties.
- Retained Mortgage Portfolio & Investment Float13.0%
Net interest income earned on retained mortgage loans, liquidity portfolios, Treasury securities, and agency debt.
Legal & General
- Institutional Retirement (PRT & Annuities)50.0%
Defined benefit pension buy-ins, buy-outs, and longevity risk transfers across the UK and US.
- Asset Management (LGIM)25.0%
Legal & General Investment Management institutional index funds, fixed income, real estate, and climate solutions.
- Retail Protection & Lifetime Mortgages18.0%
UK and US term life insurance, critical illness protection, and equity release lifetime mortgages.
- Alternative Investments & Clean Energy7.0%
Build-to-rent urban housing, clean energy infrastructure, and direct commercial real estate.
Business model and strategy
Fannie Mae
How it makes money
Fannie Mae operates a massive, highly profitable secondary mortgage market securitization and credit guaranty business model divided into two principal reporting segments: (1) Single-Family Business (~88% of net revenue), which purchases conventional conforming single-family residential mortgages from primary lenders, securitizes them into Uniform Mortgage-Backed Securities (UMBS), and guarantees the timely payment o…
Growth strategy
Fannie Mae is pursuing three strategic growth pillars under CEO Priscilla Almodovar: (1) Modernizing the mortgage closing and appraisal process through Desktop Underwriter (DU), expanding value acceptance (appraisal waivers) and automated property inspection data to reduce homebuyer closing costs;
Competitive advantage
Fannie Mae's competitive moat is protected by an extraordinary combination of statutory privileges, ubiquity, and network effects. Its congressional charter establishes an implied government backstop that enables Fannie Mae agency MBS to trade with near-Treasury liquidity and ultra-tight spreads globally.
Legal & General
How it makes money
Legal & General operates a powerful, symbiotic financial flywheel built on three unified divisions: (1) Institutional Retirement (Pension Risk Transfer): L&G writes bulk purchase annuities insuring corporate defined-benefit pension liabilities. It takes over pension scheme assets, assuming the legal obligation to pay pensioners for life, while investing those billions into higher-yielding, matching long-term assets;
Growth strategy
Under Group CEO António Simões, L&G is executing a focused three-pillar expansion strategy: (1) Scaling International Pension Risk Transfer, expanding its dominant UK PRT franchise into the booming United States and Canadian corporate pension de-risking markets;
Competitive advantage
Legal & General's competitive dominance rests upon four durable economic moats: 1. Integrated Direct Asset Origination: Unlike pure-play insurers who rely on public bond markets, L&G directly originates private credit, build-to-rent housing, science parks, and clean energy projects.
Questions about Fannie Mae vs Legal & General
Which company has higher revenue — Fannie Mae or Legal & General?
Fannie Mae had $29.4B (FY2024), while Legal & General had ~$18.7B (FY2024). By latest annual revenue, Fannie Mae is the larger business, with Legal & General showing a smaller revenue base.
What is the market cap of Fannie Mae vs Legal & General?
Legal & General has a market capitalisation of $13.8B. A public market cap figure for Fannie Mae was not available (it may be privately held).
How does revenue per employee compare for Fannie Mae and Legal & General?
Fannie Mae has $3.97M / employee in revenue per employee, while Legal & General has $1.63M / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Fannie Mae and Legal & General make money?
Fannie Mae and Legal & General generate revenue in fundamentally different ways. Fannie Mae: Fannie Mae operates a massive, highly profitable secondary mortgage market securitization and credit guaranty business model divided into two principal reporting segments: (1) Single-Family Business (~88% of net revenue), which purchases conventional conforming single-family residential mortgages from primary lenders, securitizes them into Uniform Mortgage-Backed Securities (UMBS), and guarantees the timely payment of principal and interest to institutional investors worldwide in exchange for a recurring guaranty fee (typically averaging 45 to 55 basis points on the unpaid principal balance); and (2) Multifamily Business (~12% of net revenue), which finances affordable and market-rate apartment communities through its Delegated Underwriting and Servicing (DUS) lender network, sharing credit loss risk with approved commercial lenders. Legal & General: Legal & General operates a powerful, symbiotic financial flywheel built on three unified divisions: (1) Institutional Retirement (Pension Risk Transfer): L&G writes bulk purchase annuities insuring corporate defined-benefit pension liabilities.
Is Fannie Mae bigger than Legal & General?
By last reported revenue, Fannie Mae ($29.4B (FY2024)) is the larger company compared to Legal & General (~$18.7B (FY2024)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Fannie Mae vs Legal & General overview