London, June 18, 2026, 14:05 (BST)
- Legal & General was last near 284.8 pence, off 0.1%. The FTSE 100 dropped about 0.9%.
- Bank of England left rates steady at 3.75%, with a 7–2 split. Two members wanted to lift the benchmark to 4%.
- L&G has bought back 152.9 million shares so far in its current programme, spending £389.6 million.
Legal & General Group Plc traded steady Thursday afternoon, holding near Wednesday’s close and outperforming as the wider London market lost ground after the Bank of England kept rates steady. Shares traded at 284.8 pence, not far off the previous 285 pence finish. Aviva was down 0.3%. M&G, another insurer and asset manager, rose about 1%.
L&G’s relative strength is in focus. The group sells annuities and manages pensions and other assets, so its earnings and share price are tied to interest rates, bond markets and appetite for long-term savings. Shares barely moved on Thursday. Traders didn’t see a reason to change their view on L&G’s income-focused story.
Bank of England’s Monetary Policy Committee left Bank Rate at 3.75% in a 7-2 split. Chief Economist Huw Pill and external member Megan Greene wanted a 0.25-point hike. “Playing for time rather than going on the attack,” said Schroders senior economist George Brown, who thinks the bar for a rise is still high. Reuters
Luke Bartholomew, deputy chief economist at Aberdeen, said “conditions don’t seem in place for sustained inflationary pressure.” That outlook points to a softer rate path for the UK than investors had worried about during the latest energy price shock. Markets aren’t fully pricing a rate hike until late in the year. Reuters
Consumer-price inflation stayed at 2.8% in May, according to official data out Wednesday, missing forecasts for a rise. Food prices rose 2.2%, easing from 3%. Motor-fuel prices jumped 24.6% versus last year. The numbers put the Bank in a tough spot, with domestic price pressure cooling but energy imports keeping risk in play.
L&G isn’t only hurt by higher rates. Chief Executive António Simões said in March, “as credit spreads widen, we actually have better results.” Credit spreads are the extra yield companies pay over government bonds. Wider spreads help boost returns on the assets backing annuity liabilities. Sudden moves in bond markets, though, can swing valuations and shake investors. Reuters
The share buyback is giving some support. L&G picked up 3.82 million shares from June 8 to June 11, paying an average 274.5p, and plans to cancel them. In that stretch, it bought 152.88 million shares averaging £2.5661, putting £389.6 million into the program. Buybacks cut the number of shares in the market and can push earnings per share higher if profits stay flat.
L&G’s planned £1.2 billion buyback, called the “largest in our history” by Simões, is part of the group’s push to return more capital. For 2025, L&G posted £1.62 billion in core operating profit, a 6% increase, and said core earnings per share gained 9%. The company forecast £2.4 billion in shareholder returns over the next year. Solvency II coverage ratio landed at 210%, showing capital against regulatory minimums. Legal & General Group
But risk hasn’t gone away. Capital ratio fell to 210% from 232%, missing estimates, and some earnings figures came up short even with the buyback. A fresh jump in energy prices could push the Bank to raise rates. Weak asset-management flows or more capital strain could cancel out the buyback benefit.
L&G’s next set of half-year results lands August 5. The stock is expected to move with UK bond yields, inflation views and progress on the buyback until then. Thursday’s outperformance helps, but the shares have not moved much, so there’s no clear sign of a new re-rating yet.
