Legal & General (LSE:LGEN) delivered a solid set of interim results for 2026, with core operating profit increasing 7% and core operating earnings per share rising 11% compared with the previous year. The group also generated higher Solvency II capital, ending the period with a coverage ratio of 201%, comfortably above its target range.
Asset optimisation income climbed 36% during the first half, while fee-related earnings within the Asset Management division increased 37%. The improvement was supported by record annualised net new revenue, wider fee margins and continued gains in operating efficiency.
Retirement and Asset Management Drive Growth
The company maintained strong momentum across its core businesses, writing or securing exclusivity on £5.7 billion of global pension risk transfer transactions during the period. Retail annuity sales also increased, while UK defined contribution assets under management and administration recorded double-digit growth.
Management said the group’s integrated business model continues to support sustainable earnings growth by combining retirement solutions, investment management and workplace pensions to generate recurring fee income and strong capital generation.
Dividend Increase and Buyback Reflect Capital Strength
Following the strong first-half performance, Legal & General has increased its interim dividend by 2% and continues to progress its £1.2 billion share buyback programme.
The group also reaffirmed its objective of returning more than £5 billion to shareholders between 2025 and 2027, reflecting confidence in its financial position, capital strength and long-term growth strategy.
Although recent financial performance has been robust, management acknowledged that margin pressure, variable cash generation and higher leverage remain factors to monitor. Technical indicators also remain relatively weak despite the company’s attractive dividend yield.
About Legal & General
Legal & General Group Plc is a UK-based financial services company with operations spanning asset management, institutional retirement, workplace pensions, retail savings and protection. The group manages approximately £1.2 trillion of assets globally and has a significant presence in private markets as well as the UK defined contribution pension sector.
Its business is focused on pension risk transfer, retail annuities, workplace pensions and investment management, with Asset Management overseeing the majority of annuity and pension assets. This integrated approach enables Legal & General to generate recurring fee income, support long-term capital growth and provide retirement and investment solutions to customers around the world.
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