Legal & General Reports Strong Half-Year Results with 9% EPS Growth
Why we think this is very good
The results are overwhelmingly positive, with core operating EPS up 9%, at the top end of their targeted range. There's growth across all key segments, including Institutional Retirement, Asset Management, and Retail. The company's strategic moves, including new partnerships and acquisitions, demonstrate confidence and set the stage for future growth. The strong capital position, with a Solvency II coverage ratio of 217%, provides a solid foundation. While the share price is near its 52-week high, the positive outlook and strong performance suggest potential for further gains. The interim dividend increase, albeit modest, is another positive signal for investors.
Key Points
- Core operating EPS up 9% to 10.94p
- IFRS Profit before tax up 28% to £406m
- Solvency II capital generation up 3% to £729m
- Solvency II coverage ratio strong at 217%
- £5.2bn of Global PRT volumes in Institutional Retirement
- Asset Management AUM now at £65bn in Private Markets
- Retail Workplace net new flows up 21% to £4.0bn
- Interim dividend increased 2% to 6.12p per share
- 90% of £500m share buyback now complete
- New strategic partnerships with Blackstone and Meiji Yasuda
- Acquisition of Proprium Capital Partners to enhance global real estate capabilities
Summary
Legal & General Group Plc has delivered strong half-year results for 2025, with core operating EPS up 9% to 10.94p, at the upper end of their 6-9% target range. The company saw growth across all key segments:
- Institutional Retirement operating profit up double digits
- Asset Management showing material progress with positive annualised net new revenues
- Retail customer base grown to 12.4m
Strategically, L&G has sharpened its focus with the agreed sale of its US protection business and new partnerships, including with Blackstone. The company maintains a strong capital position with a Solvency II coverage ratio of 217%. Management provides a positive outlook, stating they are firmly on track to achieve financial targets. The interim dividend was increased by 2% to 6.12p per share, in line with guidance.
Broker targets remain positive, with recent price targets ranging from 245p to 295p, suggesting potential upside from the current share price of 261.50p.