Legal and General shares drop on earnings and solvency miss
Shares of Legal and General fell on Wednesday after missing core profit and solvency targets. The insurer launched a 1.2 billion pound buyback despite the miss.
Shares of Legal & General Group Plc fell 6% in early trading on Wednesday as the insurer's latest financial results missed analyst expectations for key earnings metrics. Despite reporting a 6% rise in annual core profit and announcing a £1.2 billion share buyback, the company's financial strength indicators weighed on investor sentiment.
The United Kingdom-based firm reported a core operating profit of £1.62 billion, falling slightly short of market consensus. Its Solvency II cover ratio—a primary measure of capital adequacy—declined to 210% from 232%, also missing forecasts. CEO Antonio Simoes stated that the company remains comfortable with its solvency levels and plans to return £2.4 billion to shareholders over the next year.
