Legal & General Group (LGEN) H2 2025 earnings summary

Executive summary

• Delivered 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.

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

• Announced a record £1.2bn share buyback and dividend per share up 2% to 21.79p.

• Completed sale of US Protection business for $2.3bn and £1.5bn of asset disposals since 2024; expanded Meiji Yasuda partnership.

• Strong commercial momentum and refreshed leadership across Institutional Retirement, Retail, and Asset Management.

Financial highlights

• Core operating profit up 6% to £1.6bn; core operating EPS up 9% to 20.93p; OSG per share grew 8% in 2025.

• Institutional Retirement operating profit up 6% to £1.2bn; Retail up 4% to £447m; Asset Management stable at £402m.

• Investment variances remain material at £771m, mainly due to modeling changes and market impacts.

• Workplace DC assets grew 21% to £114bn; private markets AUM at £75bn.

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

Outlook and guidance

• Expect another year of core operating EPS growth at the top end of 6%-9% in 2026; 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 total OSG through 2027; NSG to cover dividend by 2027.

• Asset optimization expected to deliver over £300m per year, with further upside if credit spreads widen.

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