Legal and General Share Price Falls Over 6% Amid Mixed Financial Results
Legal and General Share Price Falls Over 6%
Legal and General’s share price fell by a little over 6% on March 11, 2026, ending the day at 242p. This decline comes as the company reported its core operating profit for 2025, which, although up 6% year on year, fell short of analyst expectations.
The core operating profit for 2025 was reported at £1.62 billion, slightly below the consensus forecast of £1.65 billion. This shortfall may have contributed to the drop in share price, as investors reacted to the news that the company’s performance did not meet market expectations. Additionally, the share price is now approximately 14% below its highs for the year.
Legal and General’s Solvency II coverage ratio, a key measure of financial health, was reported at 210%, which also fell short of the expected ratio of 219%. This metric is crucial for assessing the company’s ability to meet future liabilities, and the lower-than-expected figure may have raised concerns among investors.
Despite these mixed results, Legal and General announced a 2% increase in its dividend to 21.79p per share, reflecting the company’s commitment to returning value to shareholders. The dividend yield now stands at about 9% on a trailing basis, which may provide some reassurance to investors amid the fluctuating share price.
In a bid to bolster investor confidence, the company also revealed a substantial £1.2 billion share buyback program. This move is intended to enhance shareholder value and may help to stabilize the share price in the coming months.
Legal and General’s trailing price-to-earnings (P/E) ratio is currently at 11.6, which indicates a relatively attractive valuation compared to some of its peers in the financial services sector. However, the recent performance and the decline in share price could lead to increased scrutiny from analysts and investors alike.
As the market digests these results, observers will be keen to see how the share buyback and dividend increase impact investor sentiment moving forward. Details remain unconfirmed regarding the long-term implications of these financial results on the company’s market position.