Legal & General Group plc (LSE:LGEN) reported solid full-year results for 2025, with core operating profit rising 6% to £1.62bn and core earnings per share increasing 9%. The group generated £1.5bn of Solvency II capital during the year and maintained a strong solvency coverage ratio of 210%, highlighting the strength of its balance sheet.
The company also pointed to a £13.3bn store of future profit and unveiled plans to return more than £5bn to shareholders between 2025 and 2027. As part of this programme, the board announced a £1.2bn share buyback and approved a 2% increase in the dividend per share.
Operationally, Legal & General continued to expand across several key business areas. The group remained a major player in institutional pension risk transfer, completing £11.8bn of global transactions during the year. Its asset management division also grew significantly, with total assets under management reaching £1.2trn and private markets assets increasing by 32%.
The company reported further progress in workplace defined contribution pensions and retail annuity products, reinforcing its strategy of building complementary retirement, workplace and investment platforms. Management said the business is becoming more focused and integrated, with greater collaboration between its retirement, workplace and asset management segments expected to drive higher fee income and improved margins.
Looking ahead, the company’s outlook reflects a mix of supportive and challenging factors. Although some financial indicators show pressure on revenue growth and cash flow, technical signals point to positive market momentum. Recent corporate actions, including the large share buyback and continued capital returns, also indicate management confidence in future prospects. While the group trades at a relatively elevated price-to-earnings ratio, its strong dividend yield continues to attract income-focused investors.
More about Legal & General
Legal & General Group plc is a UK-based financial services group specialising in retirement solutions, asset management and retail insurance products. The company is a leading provider of defined benefit pension risk transfer services and operates a global asset management business with a growing presence in private markets. It is also expanding in defined contribution workplace pensions and retail annuities, aiming to support long-term savings and retirement outcomes for customers.
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