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 mixed financial results, with core operating profit slightly below expectations.
The reported core operating profit for 2025 was £1.62 billion, reflecting a 6% increase year on year. However, this figure fell short of the consensus forecast of £1.65 billion, prompting concerns among investors. The company’s full-year Solvency II coverage ratio was reported at 210%, which also did not meet the expected ratio of 219%.
Despite the disappointing profit figures, Legal and General announced a 2% increase in its dividend to 21.79p per share, which is a positive sign for shareholders. The dividend yield now stands at approximately 9% on a trailing basis, indicating a strong return for investors amidst the fluctuating share price.
In addition to the dividend increase, Legal and General revealed a significant £1.2 billion share buyback program. This move is intended to bolster shareholder value and is seen as a strategic response to the current market conditions.
Historically, Legal and General has maintained a solid track record of profitability and shareholder returns. The recent share price drop, which is about 14% below its 2026 highs, raises questions about the company’s future performance and market confidence.
The trailing price-to-earnings (P/E) ratio for Legal and General is currently 11.6, which may attract value investors looking for opportunities in the financial sector. However, the recent decline in share price could deter some investors who are cautious about the company’s ability to meet its financial targets.
As observers analyze the implications of these financial results and the share buyback announcement, the market will be closely watching how Legal and General navigates the challenges ahead. Details remain unconfirmed regarding the potential impact of these developments on future share price performance.
In summary, while Legal and General has taken steps to enhance shareholder value through dividend increases and share buybacks, the recent drop in share price highlights the need for the company to address its financial performance and market expectations moving forward.
