Legal & General Group (LSE:LGEN), the insurance and asset management group, reported core operating profit of £918m for the six months to 30 June, up 7% on the same period last year.
Core operating earnings per share rose 11% to 12.15p, prompting the company to guide full-year core operating EPS above the top end of its 6-9% target range. IFRS profit before tax jumped to £1,997m from £406m a year earlier, reflecting a £1,398m gain on the disposal of its non-retained US business.
Asset Management was the standout division, with fee-related earnings up 37% to £169m on record annualised net new revenue and a cost-income ratio reduced to 71% from 76%. Institutional Retirement grew operating profit 5% to £646m, helped by asset optimisation income of £227m, while Retail rose 5% to £248m on stronger annuity and workplace pension performance. Workplace DC assets under administration climbed 27% year-on-year to £128bn.
"We are making good progress in becoming a simpler, more focused L&G," said chief executive António Simões, noting the completion of roughly £450m of the company's £1.2bn share buyback programme.
The Solvency II coverage ratio stood at 201%, above its 160-190% target range, and the company raised its asset optimisation guidance to more than £400m annually from £300m previously. The interim dividend rises 2% to 6.24p per share, payable 25 September. Legal & General reports its next trading update on 16 November.
News Intelligence what this means for the company
Legal & General beat H1 expectations with 11% core EPS growth and raised full-year guidance above its 6–9% target range, driven by a 37% surge in Asset Management fee earnings and record net new revenue. The company is also accelerating asset optimisation to over £400m annually and progressing a £1.2bn buyback (£450m completed), while maintaining a Solvency II ratio of 201%—above its 160–190% target—signalling both operational momentum and capital flexibility.
The upgrade reflects genuine operational leverage in the core business (7% profit growth, 11% EPS growth) rather than one-time gains, with Asset Management's cost-income ratio improvement to 71% and Workplace DC assets climbing 27% year-on-year suggesting sustainable earnings power. The raised asset optimisation guidance and elevated Solvency II position reduce near-term capital constraints and support continued shareholder returns.
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