Legal & General (LSE:LGEN) Reports 9% EPS Growth and Strategic Progress in H1FY25

Legal & General Group Plc (LSE:LGEN), a UK-based financial services and insurance group, has reported a 9% increase in core operating earnings per share (EPS) to 10.94p for the six months ended 30 June 2025. This sits at the top end of its targeted 6–9% range. The company also posted a 6% rise in core operating profit to GBP 859 million and IFRS profit before tax of GBP 406 million, up 28% compared to the prior year period. Solvency II capital generation reached GBP 729 million, up 3%, while the group maintained a strong Solvency II coverage ratio of 217%. Its Contractual Service Margin (CSM), which represents future profit from existing contracts under IFRS 17, increased by GBP 0.2 billion during the period to GBP 12.1 billion, bringing the total future profit store to GBP 13.1 billion.

Legal & General’s business segments contributed to performance across key areas. In Institutional Retirement, the group secured GBP 5.2 billion of global pension risk transfer (PRT) volumes with low capital strain. In the Asset Management division, GBP 15 million of annualised net new revenue drove an improvement in average revenue margin to 9 basis points. Private Markets assets under management now stand at GBP 65 billion. Retail business performance remained solid, with the customer base expanding to 12.4 million. Workplace pension assets under administration exceeded GBP 100 billion, up 7% from the end of 2024. Net new flows in the Workplace segment increased by 21% to GBP 4.0 billion year-on-year.

The group continued to reposition its portfolio through disposals and strategic investments. During the period, Legal & General announced the sale of its US protection business and a broader partnership with Meiji Yasuda for GBP 2.3 billion. It also disclosed the acquisition of Proprium Capital Partners, a European and Asia-Pacific-focused real estate investment firm, enhancing its international real estate capabilities. Additionally, a long-term strategic agreement with Blackstone was announced, combining credit platform expertise to support growth in both annuities and asset management. Capital reallocation efforts also included progress on divestments from the Corporate Investments Unit.

In terms of shareholder returns, the interim dividend was raised 2% to 6.12p per share. The company reported that 90% of the GBP 500 million share buyback programme announced at the full-year results had already been completed. Legal & General confirmed it remains on track to meet its financial targets. CEO António Simões reiterated the firm’s focus on sharpening strategic priorities and redeploying capital to higher-growth segments, while continuing to deliver value to shareholders. From a broader perspective, Legal & General’s results reflect a steady performance across core divisions and further alignment of its business model to long-term secular trends, including pension de-risking, real assets, and sustainable investment.

LGEN is trading 3.22 % lower at GBP 253.08 per share as of 6 August 2025.