Legal & General Group (LGEN) H2 2025 earnings summary

Executive summary

• Achieved strong 2025 results with core operating EPS up 9% to 20.93p and core operating profit up 6% to £1,623m, at the top end of guidance.

• Solvency II operational surplus generation increased 5% to £1,530m, with a pro forma coverage ratio of 210% post-Meiji Yasuda transaction.

• Largest share buyback in history (£1.2bn) launched for 2025-2026, 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.

• Leadership team refreshed and strong commercial momentum across Institutional Retirement, Asset Management, and Retail segments.

Financial highlights

• Core operating profit up 6% to £1,623m; core operating EPS up 9% to 20.93p.

• Solvency II OSG up 5% year-on-year to £1,530m; OSG per share up 8%.

• Institutional Retirement operating profit up 6% to £1,168m; Asset Management stable at £402m; Retail up 4% to £447m.

• Profit before tax attributable to equity holders surged 143% to £807m.

• Dividend per share up 2% to 21.79p; £2.4bn to be returned to shareholders over next 12 months via dividends and buybacks.

Outlook and guidance

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

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

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

• OSG per share growth expected to outpace total OSG through 2027, with OSG growth below 5% in 2026, returning to >5% by 2028.

• UK PRT market volumes projected at £50-65bn for 2024-2028.