London, February 16, 2026, 10:26 GMT — Regular session
- Legal & General shares climbed in London morning action, moving up alongside gains in the life insurance sector.
- European financial stocks held their ground after last week’s swings, as investors kept hashing out the profit implications of AI disruption.
- Attention shifts to Legal & General’s upcoming results update, as investors look for specifics on capital returns.
Shares of Legal & General Group Plc gained 0.8% to reach 270.8 pence as of 10:10 GMT, after hitting an intraday top of 272.1p. The stock kicked off at 269.7p, up from Monday’s 268.6p close, according to Sharecast data. (Sharecast)
This shift stood out, arriving right as the whole sector was rallying—there wasn’t a fresh headline for the company itself. UK life insurers rose 1.3%, with the FTSE 100 edging up 0.2%, according to Barclays data, as traders moved cash back toward financials. (Barclays Smart Investor)
Financial stocks set the pace in Europe. The STOXX 600 ticked up 0.2%, with insurers standing out—regional insurance shares climbed 1%, according to Reuters. Deutsche Bank’s Jim Reid and his team called for more “big sentiment swings,” saying investors are caught between AI-related anxiety and an earnings season that’s so far outperformed expectations. (Reuters)
Legal & General continues to lean on the rate environment. Higher yields boost new business returns; meanwhile, asset values and investment arm fees move with market swings.
Capital return stands as the other key support for the shares. On Feb. 2, the company announced it had wrapped up the sale of its U.S. insurance arm to Japan’s Meiji Yasuda, fetching an equity value of $2.3 billion. The deal is expected to generate £1.2 billion of Solvency II capital — the standard measure for regulatory capital in the UK and EU insurance sector. Alongside this, the company committed to sending another £1 billion back to shareholders, boosting its planned 2026 buyback to £1.2 billion. “This partnership strengthens our balance sheet, releases capital and enables us to accelerate growth in US Pension Risk Transfer,” Chief Executive António Simões said. (Legal & General Group)
So the stock ends up serving as a kind of proxy for risk appetite in the insurance space—steady cash returns pulling one way, broader sentiment and macro factors tugging the other. Investors want answers: how fast does the cash make its way back, and what’s the growth profile post-U.S. reshuffle?
The tape’s quick to flip. A sudden move in bond yields, or just another risk-off swing, can bite insurers—investment portfolios take the hit, fee income wobbles, and that dividend narrative? Still standing, but it’s not bulletproof.
Legal & General’s financial calendar marks March 11 as the big date—preliminary full-year results go live at 0700 GMT. (Legal & General Group)
