Legal and General Profit Rises and Launches Share Buyback
L&G posted a 6 percent rise in core profit and a 1.2 billion pound buyback. The solvency ratio fell to 210 percent as the CEO pursues a major overhaul.
The British financial services provider Legal & General Group Plc has reported a 6% increase in its annual core operating profit, reaching 1.62 billion pounds, a figure slightly below analyst forecasts. The results, released on Wednesday, come as the United Kingdom-based insurer undergoes a strategic overhaul under Chief Executive Antonio Simoes. Alongside the profit growth, the company announced a 1.2-billion-pound ($1.6 billion) share buyback program and a dividend of 21.79 pence per share. However, the group's Solvency II cover ratio—a key measure of financial strength—fell to 210% from 232% in the previous year. Analysts at JPMorgan Chase & Co. noted that this solvency ratio was lower than expected and that performance in the institutional and asset management divisions was also weaker than forecast. Despite these challenges, analysts welcomed the increased clarity regarding the company's capital return plans. Core earnings per share rose by 9%, which the company stated was at the top end of its guided range. As the largest domestic investor in the British market, the group currently manages 1.1 trillion pounds in assets.
