Legal & General Group (LON:LGEN) Releases Quarterly Earnings Results

Legal & General Group (LON:LGEN) posted its quarterly earnings results on Wednesday. The financial services provider reported GBX 8.01 EPS for the quarter, Digital Look Earnings reports. Legal & General Group had a return on equity of 15.89% and a net margin of 0.91%.

Here are the key takeaways from Legal & General Group’s conference call:

• Core operating EPS increased 11% year over year, exceeding the company’s 6%-9% full-year guidance range. L&G raised its interim dividend 2% to £0.0624 per share and had completed approximately £450 million of its £1.2 billion share buyback.
• Asset management was the standout performer, with fee-related earnings up 37%, annualized net new revenue of £23 million, revenue margins rising to 9.6 basis points, and the cost-to-income ratio improving to 71% from 75%. Management said it remains on track for £500 million-£600 million of operating profit in 2028, with more than 80% fee-related.
• Institutional retirement wrote or secured £5.7 billion of pension risk transfer business, but first-half new business margins declined to 4.2% and strain rose to 3.4% amid tight credit spreads and competition. Management emphasized pricing discipline and raised its asset-optimization expectation to more than £400 million annually, while maintaining a 14% minimum return hurdle.
• Retail momentum remained strong, with workplace pension net flows up 35%, individual annuity premiums up 36%, and protection sales up 22%. End-to-end workplace profit more than doubled to £48 million, supporting the target to reach £180 million by 2028.
• L&G reported a robust 201% solvency ratio, or 209% pro forma after refinancing, but expects it to move toward its 160%-190% operating range as capital is deployed for growth. Management also noted that PRT volumes may fluctuate by year and that future regulatory changes could affect the use of funded reinsurance.

Legal & General Group Stock Up 1.6%

Shares of LON:LGEN opened at GBX 316.97 on Friday. The company has a market capitalization of £17.35 billion, a price-to-earnings ratio of 32.54, a PEG ratio of 2.34 and a beta of 0.80. Legal & General Group has a 12-month low of GBX 217.20 and a 12-month high of GBX 317.10. The business has a 50-day moving average price of GBX 287.91 and a 200 day moving average price of GBX 269.49. The company has a current ratio of 59.08, a quick ratio of 0.50 and a debt-to-equity ratio of 1,100.04.

Key Headlines Impacting Legal & General Group

Here are the key news stories impacting Legal & General Group this week:

• Positive Sentiment: Legal & General reported a modest profit beat for the first half of 2026 and increased its dividend by 2%, reinforcing the income appeal of LGEN. The company also described its performance as strong and indicated confidence in shareholder returns. Legal & General first-half performance
• Positive Sentiment: Berenberg raised its price target from GBX 353 to GBX 385 and upgraded its recommendation to “buy.” The higher target represents a notably bullish view and is likely supporting the shares. Berenberg broker recommendation
• Positive Sentiment: Peel Hunt assigned Legal & General an “add” rating, providing additional evidence that some analysts see further upside following the results. Peel Hunt add rating
• Positive Sentiment: Recent insider buying, including purchases by Andrew Kail and Mark Jordy, offers a modest confidence signal. However, Kail’s latest purchase was small at approximately £220. Legal & General insider buying
• Neutral Sentiment: Legal & General reported quarterly EPS of GBX 8.01, with return on equity of 15.89% and net margin of 0.91%. The results provide useful confirmation of profitability, but investors are likely to focus more on the full-year outlook and cash generation. Legal & General earnings report
• Negative Sentiment: Jefferies reaffirmed an “underperform” rating with a GBX 185 target, far below recent trading levels. The sharply mixed broker outlook and consensus “hold” stance could limit further gains or increase volatility. Jefferies broker recommendation

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on LGEN shares. Berenberg Bank raised their price objective on shares of Legal & General Group from GBX 353 to GBX 385 and gave the stock a “buy” rating in a research report on Thursday. Jefferies Financial Group reiterated an “underperform” rating and issued a GBX 185 target price on shares of Legal & General Group in a report on Wednesday. Royal Bank Of Canada reissued an “underperform” rating and issued a GBX 255 price target on shares of Legal & General Group in a research note on Wednesday, July 29th. Citigroup raised their price target on shares of Legal & General Group from GBX 249 to GBX 251 and gave the stock a “neutral” rating in a report on Tuesday, June 9th. Finally, Peel Hunt reaffirmed an “add” rating and set a GBX 320 price target on shares of Legal & General Group in a research report on Tuesday. Two research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and an average price target of GBX 276.29.

Insider Buying and Selling

In related news, insider Mark Jordy bought 3,683 shares of the stock in a transaction on Wednesday, July 1st. The stock was bought at an average price of GBX 287 per share, with a total value of £10,570.21. Insiders have bought a total of 8,390 shares of company stock valued at $2,444,751 over the last 90 days. Corporate insiders own 0.59% of the company’s stock.

Legal & General Group Company Profile

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally. It operates in Legal & General Retirement Institutional (LGRI), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Retail segments. The LGRI segment offers annuity contracts with guaranteed income for a specified time; and longevity insurance products. The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets.