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.

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Legal and General has reported a strong financial performance for 2025, with core operating profit rising by 6% to a total of £1.6 billion. This growth is accompanied by a 9% increase in core earnings per share, showcasing the company’s robust financial health.

Profit before tax saw a remarkable increase of 143%, reaching £807 million. This surge in profitability reflects the company’s effective management and strategic initiatives.

What strategic moves has Legal and General made?

In a significant move, Legal and General announced a £1.2 billion share buyback, marking the largest in its history. This initiative is part of the company’s broader strategy to enhance shareholder returns, with total planned returns set at £2.4 billion over the next year.

Additionally, the company reported a 21% increase in workplace defined-contribution assets under administration, which now total £114 billion. Furthermore, private markets assets in asset management rose by 32% to £75 billion, indicating strong demand for long-term investments.

Who is leading these efforts?

António Simões, the CEO of Legal and General, stated, “Today we’re reporting a strong financial performance for 2025, and meaningful progress in reshaping L&G.” He emphasized that the company is on track to achieve its financial targets and aims to accelerate momentum while maintaining discipline in delivering enhanced shareholder returns.

Simões also noted that Legal and General has become “a sharper, more focused business” following a year of restructuring, positioning itself well to capitalize on the growing demand for long-term investments and retirement income.

What are the implications of these results?

These results were broadly in line with analyst forecasts at the operating level, although there were some notable shortfalls. As Legal and General continues to navigate the evolving financial landscape, it remains to be seen how these strategies will unfold in the coming months.

Details remain unconfirmed regarding specific future initiatives or market conditions that may impact the company’s performance. However, the current trajectory suggests a positive outlook for Legal and General as it seeks to enhance its market position.

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