What does Legal and General’s latest financial report reveal?
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 increase reflects the company’s ongoing efforts to reshape its operations and focus on long-term investments.
Core earnings per share also saw a significant increase of 9% over the past year. The profit before tax reached £807 million, marking a remarkable 143% increase compared to previous figures.
In a move to enhance shareholder value, Legal and General announced a £1.2 billion share buyback, the largest in its history. The company aims for total planned shareholder returns of £2.4 billion over the next year, indicating a strong commitment to returning value to its investors.
António Simões, the CEO of Legal and General, 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.
Legal and General’s assets under administration have also shown impressive growth. Workplace defined-contribution assets increased by 21% to £114 billion, while private markets assets in asset management rose by 32% to £75 billion.
The company’s Solvency II coverage ratio stood at 210% on a pro forma basis, further demonstrating its robust financial health. Simões noted that Legal and General has become “a sharper, more focused business” following a year of restructuring.
Despite the positive results, some analysts pointed out that there were notable shortfalls in certain areas, although the overall results were broadly in line with forecasts at the operating level.
Legal and General is well-positioned to capitalize on the structural, growing demand for long-term investments and retirement income. As the company continues to implement its strategic objectives, it remains to be seen how these developments will unfold in the coming months.
Details remain unconfirmed regarding any potential challenges that may arise as the company seeks to maintain its growth trajectory.
