Legal & General Group (LGEN) H1 2026 earnings summary

Executive summary

• Delivered strong H1 2026 results with core operating profit up 7% to £918m and core operating EPS up 11% to 12.15p, exceeding the 6-9% target range.

• Interim dividend per share increased 2% to 6.24p, with £450m of a £1.2bn share buyback completed.

• Solvency II coverage ratio at 201%, well above the 160-190% target range.

• IFRS profit before tax surged to £1,997m, driven by a £1.4bn gain on the disposal of the US business.

• Positioned as the UK's largest provider of retirement incomes and asset manager, with £1.2trn AUM and 13 million customers.

Financial highlights

• Core operating profit rose to £918m (+7% year-over-year); core operating EPS up 11% to 12.15p.

• IFRS profit before tax: £1,997m (up from £406m), reflecting the US business disposal.

• Operational Surplus Generation increased to £790m (+3%), and OSG per share rose 7% to 14.16p.

• Dividend per share up 2% to 6.24p; dividend cover expected to exceed 100% in 2026.

• Asset management fee-related earnings up 37% year-on-year; cost-income ratio improved from 75% to 71%.

Outlook and guidance

• On track to deliver 6-9% core operating EPS CAGR (FY24-27) and >20% operating ROE for 2025-2027.

• Asset optimisation guidance raised to over £400m per annum.

• UK PRT volumes expected at £50-65bn (2024-2028), with strain below 4%.

• Confident in delivering Asset Management operating profit target of £500-600m by 2028.

• Dividend expected to be covered by core operating EPS in 2026, with further improvement in 2027.