LONDON, May 16, 2026, 19:01 (BST)
Legal & General Group Plc finished the week at 264.8 pence, gaining 5.4% on the week. The move follows takeover speculation that stirred up activity in the FTSE 100 insurer even as the London market went into the weekend. Shares added 0.38% on Friday after jumping 6.16% Thursday.
L&G shares jumped over 5% on Thursday, after the Financial Times reported there could be buyer interest, Reuters said. The move didn’t follow a fresh trading update. The FT quoted CEO António Simões saying L&G was not considering a sale. L&G wouldn’t comment to Reuters.
Simões pushed back on the bid rumors in the FT story cited by Alliance News, saying he was “100% focused on executing my strategy.” He also said: “There’s no discussions or anything else going on.” Investors are left looking to next week: was the rally about strategic value, or just a bid premium with no bid? Morningstar
FTSE 100 ends lower, heads into weekend with weekly fall London’s FTSE 100 dropped 1.71% to finish at 10,195.37 on Friday, index data shows. The index declined 0.37% on the week as UK stocks lost some ground going into the weekend.
UK markets came under more strain Friday. Reuters reported that stocks, bonds and the pound all dropped as traders looked at a possible leadership bid against Prime Minister Keir Starmer by Greater Manchester Mayor Andy Burnham. Rising oil prices put more focus on inflation worries. Saxo UK strategist Neil Wilson said, “Markets won’t like it and they won’t like the idea of the Labour party anointing a left-leaning PM whose fiscal views are well known.” Reuters
Hiscox shares jumped as much as 15.3% Friday after Reuters said Canada’s Intact Financial may bid for the British insurer. That followed L&G’s Thursday gain, both moves showing overseas and private capital looking at UK-listed financial stocks with valuations seen as cheap.
Aviva flagged macro risks from within the insurance sector, with CEO Amanda Blanc telling Reuters UK businesses need stability. “We don’t operate in a vacuum,” Blanc said. Aviva posted first-quarter growth in general insurance premiums and wrapped up its £3.7 billion takeover of Direct Line. Reuters
L&G is leaning on capital returns for its investment story. In March, core operating profit rose 6% to 1.62 billion pounds. Earnings per share on that basis climbed 9%. The company declared a 21.79 pence dividend and set a 1.2 billion pound buyback, which cuts shares in circulation and can drive per-share numbers higher. Simões called the move the “largest in our history.” Legal General Group
L&G is set for a formal week, with its annual general meeting on May 21 in London. The company also plans a general meeting for a shareholder vote on a proposed capital reduction, which would change its share capital.
The rally still faces clear risks. Without a bidder, the stock is left with its dividend, buyback, and earnings. If UK government bond yields keep rising, income names will have to compete harder with bonds. Insurers could stay exposed to swings in long-term rates. British 10-year gilt yields, or UK government bonds, reached the highest since July 2008 on Friday, according to Reuters.
L&G has momentum going into Monday and is still trading with a rumour discount. But it still needs to show more. Investors will be watching to see if Simões can keep the group simpler, protect the dividend and make the buyback last longer than a short-term pop.
