Legal and General Share Price Falls Over 6%
Legal and General’s share price fell by a little over 6% on March 11, 2026, ending the day at 242p. This decline comes as the company reported core operating profit figures that, while showing a year-on-year increase, fell short of market expectations.
The core operating profit for 2025 was reported at £1.62 billion, reflecting a 6% increase from the previous year. However, this figure was below the consensus forecast of £1.65 billion, raising concerns among investors about the company’s performance. Additionally, the share price is now approximately 14% below its highs for 2026, indicating a challenging market environment.
In terms of financial health, Legal and General reported a full-year Solvency II coverage ratio of 210%, which also fell short of the expected 219%. This ratio is a critical measure of an insurance company’s ability to meet its long-term obligations, and the shortfall may have contributed to investor unease.
On a more positive note, the company announced a 2% increase in its dividend, raising it to 21.79p per share. This decision aligns with Legal and General’s ongoing strategy to return value to shareholders, which is further underscored by the announcement of a £1.2 billion share buyback. The dividend yield now stands at about 9% on a trailing basis, which may attract income-focused investors.
Core operating earnings per share (EPS) for 2025 were reported at 20.93p, and the trailing price-to-earnings (P/E) ratio is currently at 11.6. These metrics provide a snapshot of the company’s profitability and valuation relative to its earnings, although the recent share price drop may alter perceptions among potential investors.
Legal and General has consistently increased its dividend per share and launched significant share buybacks in recent years, which have been well-received by the market. However, the latest financial results suggest that the company may face challenges in maintaining this momentum, particularly in light of the missed profit forecasts and lower-than-expected solvency ratios.
Observers will be closely monitoring how Legal and General navigates these challenges in the coming months, especially as the market reacts to the recent financial disclosures. Details remain unconfirmed regarding the long-term impact of these results on the company’s strategy and investor confidence.