The strong performance was largely driven by the company’s asset management division, which now oversees £1.2 trillion. JPMorgan analysts noted that the insurer exceeded forecasts across most key financial metrics. Building on this momentum, the company raised its growth targets for core operating earnings per share, which are now expected to climb between 6% and 9% this year.
Legal & General beats profit estimates as asset management grows
Legal & General reported a 7% rise in core operating profit to £918 million for the first half of 2026, outpacing analyst expectations. The British insurer also increased its interim dividend to 6.24 pence per share, signaling confidence as CEO Antonio Simoes pushes forward with his strategy to simplify the firm.
Despite these gains, the firm faces a competitive landscape, particularly within its core pensions buyout business. The company’s Solvency II cover ratio landed at 201%, falling just short of the 206% average predicted by analysts. While recent reports suggested interest from potential buyers, Simoes has dismissed any plans for a sale. Investors have responded positively to the current trajectory, pushing the stock up 16% this year, a performance that outstrips the 10% gain seen by the broader FTSE 100 index.
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