What is the current financial status of Legal and General?
Legal and General has reported a strong financial performance for 2025, with core operating profit rising by 6% to a total of £1.6 billion. This growth reflects the company’s strategic focus on long-term investments and retirement income.
Core earnings per share also saw a notable increase of 9% over the past year, indicating a solid return for shareholders. Profit before tax reached £807 million, marking a remarkable 143% increase compared to previous periods.
What are the implications of these results?
In a significant move, Legal and General announced a £1.2 billion share buyback, the largest in its history. This initiative is part of the company’s broader strategy to enhance shareholder value, with total planned returns of £2.4 billion over the next year.
António Simões, the CEO, stated, “Today we’re reporting a strong financial performance for 2025, and meaningful progress in reshaping L&G.” He emphasized that the company is on track to achieve its financial targets and aims to accelerate momentum while maintaining discipline.
How has the company performed in asset management?
Legal and General’s asset management division has also shown impressive growth. Workplace defined-contribution assets under administration increased by 21% to £114 billion. Additionally, private markets assets rose by 32% to £75 billion, underscoring the company’s strong position in the market.
The Solvency II coverage ratio stood at 210% on a pro forma basis, reflecting the company’s robust financial health and ability to meet regulatory requirements.
What does the future hold for Legal and General?
Simões described Legal and General as “a sharper, more focused business” following a year of restructuring. The results were broadly in line with analyst forecasts at the operating level, though there were some notable shortfalls.
Legal and General is well-positioned to capitalize on the structural, growing demand for long-term investments and retirement income, but details remain unconfirmed regarding specific future strategies and market conditions.