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Highlights

  • Panmure Liberum’s Abid Hussain sets a ‘Buy’ recommendation for L&G, with a target price of AUD 6.93 (GBP 3.50).

  • Target price implies a potential upside of 28.85% from the current market price.

  • In H1 2025, the company reported core operating profit growth of 6% and an interim dividend increase of 2%.

Legal & General Group Plc (LSE:LGEN), one of the United Kingdom’s largest life and health insurance groups, has received a positive endorsement from Panmure Liberum analyst Abid Hussain, who issued a ‘Buy’ recommendation on the company’s stock. The analyst set a price target of AUD 6.93, equivalent to GBP 3.50, representing a 28.85% premium to L&G’s latest closing price of GBP 2.5892 (AUD 5.35).

The rating comes at a time when L&G is demonstrating steady growth across its core businesses, supported by disciplined capital management.

Financial Delivery in H1 2025

In the half-year ended 30 June 2025, L&G reported core operating profit of GBP 859 million, an increase of 6% from the prior corresponding period, and core operating earnings per share of 10.94 pence, up 9%. IFRS profit before tax rose by 28% to GBP 406 million.

The group also generated GBP 729 million in Solvency II capital, up 3% year-on-year, with a Solvency II coverage ratio of 217%, reinforcing its capital strength. Contractual Service Margin (CSM), which reflects future profit potential, increased to GBP 12.1 billion, while the store of future profit rose to GBP 13.1 billion.

Business Segment Performance

The Institutional Retirement division achieved GBP 5.2 billion in global Pension Risk Transfer (PRT) volumes. In Asset Management, annualised net new revenue reached GBP 15 million, lifting the average revenue margin to 9 basis points, with Private Markets assets under management now at GBP 65 billion.

The Retail segment reported workplace net new flows of GBP 4.0 billion, up 21% from HY24, with Workplace assets under administration reaching GBP 101 billion, a 7% increase from FY24.

Strategic Growth Moves

L&G also announced the acquisition of Proprium Capital Partners, expanding its real estate investment capabilities in Europe and Asia-Pacific. Additionally, it formed a long-term partnership with Blackstone to enhance growth in annuities and asset management.

Progress is continuing on the sale of its US protection business and the expansion of its partnership with Meiji Yasuda.

Shareholder Returns

An interim dividend of 6.12 pence per share was declared, up 2% in line with company guidance. L&G has also completed 90% of its GBP 500 million share buyback announced at the full-year results.