London, March 9, 2026, 22:37 GMT
Legal & General Group Plc shares fell 1.8% on Monday to about 249.9 pence as investors moved up to the insurer’s March 11 full-year results, with the market focused less on the headline earnings number than on how much cash comes back and how quickly. 1
That matters now because L&G completed the sale of its U.S. insurance entity to Meiji Yasuda on Feb. 2, said the deal generated £1.2 billion of Solvency II capital, and flagged an extra £1 billion for shareholders, taking its planned 2026 buyback to £1.2 billion. Chief Executive António Simões said the transaction “supports enhanced returns for shareholders.” 2
Consensus figures published by the company and updated on March 5 point to 2025 core operating profit of £1.649 billion, core operating earnings per share of 21.17 pence, a dividend of 21.79 pence and a Solvency II coverage ratio of 219%. Solvency II is the sector’s capital yardstick, so that line will matter as much as profit. 3
Matt Britzman, senior equity analyst at Hargreaves Lansdown, said investors were focused on the speed of excess capital returns and saw scope for as much as £1.2 billion to be announced with the results. He said early signs of simplification at the group “could help underpin confidence.” 4
Aarin Chiekrie, an equity analyst at Hargreaves Lansdown, wrote on March 5 that L&G’s balance sheet was “in great shape”, giving it room for buybacks to rise from around £500 million in 2025 to close to £1.2 billion in 2026, backed by the U.S. disposal. He also pointed to pension risk transfers — deals in which companies hand final-salary liabilities to insurers — as a core driver of the business. 5
The company set a solid benchmark a year ago. In its 2024 full-year results, L&G reported core operating profit of £1.616 billion and core operating EPS of 20.23 pence, both up 6%, announced a £500 million buyback for 2025 and said it intended to return more than £5 billion over three years through dividends and buybacks. 6
The backdrop in pensions remains busy. Britain’s bulk annuity market — insurance transactions that let companies move pension liabilities off their balance sheets — reached £45 billion in 2024, with consultancy LCP expecting £40 billion to £50 billion in 2025. L&G competes there with Aviva and Phoenix; Aviva last week posted a 25% jump in annual profit and restarted a £350 million buyback. 7
But there is a risk. Hargreaves Lansdown said the much-discussed £1.2 billion outcome is not guaranteed, and that confidence still depends on whether management can show it is serious about cutting complexity. A lighter buyback or a thin strategy update would likely leave the shares exposed. 8
L&G is due to publish its 2025 full-year results and presentation slides at 0700 GMT on Wednesday, followed by a management presentation and question-and-answer session at 0930 GMT. 9
