Legal & General Group (LGEN) H2 2025 earnings summary

Executive summary

• Delivered strong financial results in 2025, with core operating EPS up 9% to 20.93p and core operating profit up 6%, at the top end of guidance.

• OSG increased 5% to £1.5bn, with OSG per share up 8%; Solvency II coverage ratio at 210% post-Meiji Yasuda transaction.

• Largest-ever share buyback (£1.2bn) launched, following £500m in 2024 and £200m in 2023.

• Completed sale of U.S. protection business for $2.3bn, expanding partnership with Meiji Yasuda, who now hold a 5% stake.

• Strategic focus sharpened with £1.5bn of asset disposals, refreshed leadership, and a new capital allocation framework prioritizing shareholder returns.

Financial highlights

• Core operating profit up 6% to £1.6bn, reflecting resilient insurance earnings and asset management inflection.

• Institutional Retirement operating profit up 6% to £1.2bn, driven by strong PRT flows and asset optimization.

• Asset Management operating profit stable at £402m; annualized net new revenue of £34m, with fee margin up to 9.1bps.

• Retail operating profit up 4% to £447m, with workplace DC assets up 21% to £114bn and net flows of £6.2bn.

• Dividend per share up 2% to 21.79p; £1.2bn share buyback announced.

Outlook and guidance

• Core operating EPS expected at the top end of 6%-9% range for 2026, with high confidence in three-year group targets.

• Medium-term Solvency II coverage target range set at 160%-190%.

• OSG per share growth to continue outpacing OSG through 2027, with OSG growth below 5% in 2026, returning to above 5% by 2028.

• Cumulative capital generation target of £5-6bn for 2025-2027.

• Asset Management profit target of £500m-£600m by 2028, with higher weighting to fee earnings.