Legal and General share price rises after beating profit forecasts with 11% earnings growth
Legal and General share price benefited from first-half results showing core operating earnings per share rose 11%, exceeding medium-term guidance targets.
Legal and General Group PLC reported first-half core operating profit of £918 million, surpassing consensus forecasts by approximately 4%, with the legal and general share price supported by 11% growth in core operating earnings per share. The FTSE 100-listed financial services company also confirmed an interim dividend increase of 2% and signalled that full-year earnings would exceed its medium-term guidance range of 6-9%.
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Operational Performance and Asset Management Strength
The primary driver of the company's outperformance came from its asset management division, which delivered a sharp operational improvement during the period. Fee-related earnings in this segment increased by 37%, supported by record annualised net new revenue and a reduced cost-income ratio of 71%. This performance demonstrates the competitive advantage the company derives from its integrated business model, combining institutional retirement services, retail savings and protection, and global asset management operations.
Management highlighted progress across multiple divisions. In Institutional Retirement, the company maintained disciplined pricing while securing approximately £5.7 billion in global pension risk transfer business year to date. Retail operations continued to strengthen, with workplace pensions administered assets increasing 27% year-on-year to reach £128 billion, and total UK defined contribution assets under management climbing to £236 billion.
Capital Returns and Strategic Direction
The company has completed approximately £450 million of its £1.2 billion share buyback programme, demonstrating confidence in shareholder value creation. The 2% interim dividend increase reflects improved dividend cover supported by stronger capital generation, aligning with management's commitment to sustainable returns. Chief executive António Simões indicated the group remains on track to meet or exceed its strategic targets while continuing a simplification process aimed at creating a more focused operating structure.
With £1.2 trillion in total assets under management globally—of which approximately 43% represents international operations—the company maintains significant scale advantages that support operational efficiency gains and interconnected business benefits.
Why did Legal and General's asset management division perform so strongly?+
What was the core operating profit result and how did it compare to expectations?+
How much has the company returned to shareholders through buybacks?+
What are the company's growth expectations for the full year?+
How did workplace pensions assets perform in the first half?+
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