London · Delayed Price · Currency is GBP · Price in GBX Legal & General Group Earnings Call Transcripts
Fiscal Year 2025
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Strong 2025 results with 9% EPS growth, robust capital position, and record capital returns. Strategic asset disposals, a major share buyback, and disciplined growth in core businesses underpin confidence in meeting medium-term targets and sustaining dividends.
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Strong progress on strategic priorities with robust growth in institutional, asset management, and retail businesses. Retail operating profit is set to grow 4–6% annually to 2028, driven by technology, workplace expansion, and product innovation, with a focus on organic growth and operational efficiency.
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Core operating EPS rose 9% and profit 6% year-over-year, with strong growth in Institutional Retirement, asset management, and retail. Capital strength remains robust, and over £5 billion is set to be returned to shareholders. Strategic partnerships and digital innovation support future growth.
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Sharpened strategic focus and disciplined capital allocation are driving transformation, with targets of £500m–£600m operating profit and over £85bn private markets AUM by 2028. Revenue margins are rising, cost discipline is strong, and international expansion is a key growth lever.
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The AGM highlighted strong financial results, a sharpened strategic focus, and major asset sales to support sustainable growth and enhanced shareholder returns. Leadership changes, technology investment, and ESG commitments were discussed, with robust engagement on risk, dividends, and governance.
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A major divestment and strategic partnership will unlock significant value, boost capital returns, and enhance growth in core businesses. Over GBP 5 billion will be returned to shareholders, while the partnership with Meiji Yasuda strengthens U.S. PRT and asset management growth.
Fiscal Year 2024
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Core operating profit rose 6% to £1.6bn, with strong capital generation and a 232% solvency ratio. Over £5bn will be returned to shareholders, supported by non-core disposals and a strategic partnership with Meiji Yasuda, while all core businesses showed positive momentum.
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Sharpened strategic focus and disciplined capital allocation have driven strong growth in institutional retirement, with over £10 billion in PRT volumes for 2024 and robust pipelines for 2025. Gilt-based strategies have reduced capital strain, enabling increased shareholder returns while maintaining high profitability and market leadership.
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Core operating profit and solvency remain strong, with growth in institutional retirement, asset management, and retail. The business is executing its strategy, launching new private market funds, and increasing shareholder returns through dividends and buybacks.
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A new strategy focuses on three synergistic, capital-light businesses, with clear financial targets for EPS growth, ROE, and capital generation. Asset Management and L&G Capital are merging, non-strategic assets are being managed for value, and enhanced shareholder returns will be delivered through a mix of dividends and buybacks.