Legal & General Group (LGEN) H1 2026 earnings summary

Executive summary

• Delivered strong H1 2026 results with core operating profit up 7% to £918m and core operating EPS up 11% to 12.15p, exceeding the 6-9% guidance.

• Interim dividend per share increased by 2% to 6.24p, with a £1.2bn share buyback program in progress and £450m completed.

• Solvency II coverage ratio remains robust at 201%, well above the 160-190% target range.

• Asset Management delivered standout performance, with fee-related earnings up 37% and cost-income ratio reduced to 71%.

• IFRS profit before tax surged to £1,997m, driven by a £1.4bn gain on the disposal of the US business.

Financial highlights

• Core operating profit rose to £918m (+7% year-over-year); core operating EPS up 11% to 12.15p.

• IFRS profit before tax: £1,997m (up from £406m), reflecting the US business disposal.

• Operational Surplus Generation increased to £790m (+3%), and OSG per share rose 7% to 14.16p.

• Dividend per share up 2% to 6.24p; dividend cover expected to exceed 100% in 2026.

• Institutional retirement core operating profit reached £646m in H1.

Outlook and guidance

• On track to exceed 6-9% EPS growth target for the full year and deliver >20% operating ROE for 2025-2027.

• Asset optimisation guidance raised to over £400m per annum.

• Reaffirmed 5-7% compound annual growth rate target in operating profit.

• Dividend expected to be covered by core operating EPS in 2026, with further improvement in 2027.

• Guidance for £50-65bn in UK PRT volumes for 2024-2028 remains, with disciplined pricing prioritized over volume.