Legal and General has delivered an impressive performance in the first half of 2025, showcasing strong financial momentum and strategic clarity. The UK-based financial services giant reported a 9% increase in core operating earnings per share (EPS), topping its forecast range and reinforcing investor confidence.
CEO António Simões described the results as a validation of the company’s long-term strategy, noting, “Legal and General had an excellent six months, with results at the top end of our targeted range of 6-9%. We are growing and leveraging synergies across our three core businesses.”
Triple-Engine Growth Model
Legal and General’s diversified business model continues to pay dividends, quite literally. With a focus on Institutional Retirement, Asset Management, and Retail, each division reported notable progress.
- Institutional Retirement saw double-digit profit growth and wrote over £5.2 billion in global PRT (pension risk transfer) deals, while keeping capital strain low.
- In Asset Management, Legal and General added £15 million in annualised net new revenue, improving its average revenue margin, which is edging closer to its double-digit target.
- The Retail division grew its customer base to 12.4 million, with workplace pension assets crossing the £100 billion milestone—a significant benchmark demonstrating public trust and strong product-market fit.
Strategic Deals Fuel Expansion
Legal and General’s forward momentum isn’t limited to earnings. The company is reshaping its global portfolio, enhancing its strategic positioning for long-term growth.
In a headline move, Legal and General announced the sale of its US protection business and entered into a $2.3 billion partnership with Meiji Yasuda, a Japanese financial powerhouse. Simultaneously, its acquisition of Proprium Capital Partners boosts its capabilities in the high-growth global real estate market.
Another major win is the newly formed partnership with Blackstone, designed to strengthen Legal and General’s presence in both annuities and asset management. These moves reflect the company’s sharpened focus on scalable, global growth markets.
Strong Capital Base and Shareholder Returns
Legal and General continues to reward its shareholders. The interim dividend per share rose by 2% to 6.12p, and 90% of a £500 million share buyback has already been completed, in line with full-year targets. The company generated £859 million in core operating profit, up 6% year-on-year, while IFRS profit before tax rose 28% to £406 million.
Notably, the firm’s Solvency II coverage ratio stands at a robust 217%, reflecting financial resilience and regulatory compliance.
Outlook: Bright and Bullish
Looking ahead, Legal and General appears well-positioned to meet its financial targets, supported by consistent performance and clear strategic execution. “The outlook for our businesses is positive,” Simões affirmed. “We are delivering on our promise to return more to shareholders.”
Legal and General’s blend of strong financials, focused global strategy, and high-impact partnerships cements its place as a leader in the UK and global financial services markets.
Why It Matters
This announcement reinforces Legal and General’s role not only as a UK household name but also as a serious player on the global stage. With increasing institutional investment, a growing retail customer base, and intelligent capital redeployment, the company is future-ready.
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