L&G half-year profit tops analyst forecasts
Legal & General’s Strong Financial Performance in H1 2026
Profit Growth and Dividend Announcement
LONDON, Aug 5 (Reuters) - British insurer Legal & General reported a forecast-topping 7% increase in core operating profit to £918 million ($1.24 billion) for the first half of 2026 on Wednesday, as well as an improved interim dividend of 6.24 pence per share.
Analyst Reactions and Asset Management Success
Analysts at JPMorgan wrote that L&G beat forecasts across most key financial metrics, boosted by strong growth in its asset-management arm, overseeing £1.2 trillion.
CEO Strategy and Company Outlook
L&G Chief Executive Antonio Simoes has pledged to improve performance and boost investor returns by simplifying the company and expanding its capital-light asset management and retail divisions, though analysts have said it faces challenges including tougher competition in its core pensions buyout business.
Revised Performance Targets
The company raised some performance targets. Among them was growth in core operating earnings per share, now expected to exceed 6% to 9% this year.
Financial Strength and Market Position
Solvency II Cover Ratio
The company's Solvency II cover ratio — a key metric of financial strength — was 201%, slightly below a 206% average of analyst forecasts.
Takeover Interest and Share Price Performance
Potential Buyers and CEO Response
The Financial Times reported in May that the insurer was attracting interest from potential buyers after a period of subdued share price performance, with Simoes responding that he was not considering a sale.
Stock Performance Versus Market
L&G's stock has enjoyed a better run since then and was up 16% this year prior to Wednesday's results, outperforming a 10% gain for the wider FTSE 100 blue-chip index.
($1 = 0.7432 pounds)
(Reporting by Iain WithersEditing by David Goodman)
