L&G posts jump in H1 profit, hails strong asset management performance

(Sharecast News) - Legal & General reported a jump in first-half core operating profit on Wednesday as it highlighted a strong performance in asset management and said full-year earnings per share growth would be above guidance.

In the six months to 30 June, core operating profit rose 7% on the same period a year earlier to �918m, while core operating earnings per share were up 11% to 12.15p.

L&G said it now expects FY26 core operating EPS to be above the top end of its 6% to 9% target range.

The Solvency II coverage ratio, a key measure of financial strength, was 201%, down from 217% and remaining well above L&G's target range of 160% to 190%.

Core operating profit in the asset management segment rose 10% to �222m, while Institutional Retirement and the retail business both saw a 5% jump, to �646m and �248m, respectively. The interim dividend was lifted 2% to 6.24p per share.

Chief executive Antonio Simoes said: "The highlight of the first half was the performance in Asset Management, with fee-related earnings increasing 37%, supported by record annualised net new revenue and a reduced cost-income ratio of 71%. In Institutional Retirement, we maintained our strict pricing discipline while writing or exclusive on �5.7bn of global PRT year to date. We continue to cement our leading positions in Retail. Workplace Pensions administered assets increased 27% year on year to �128bn and total UK DC assets under management reached �236bn.

"Our scale and the connections between our businesses remain a clear competitive advantage, which we are building further through improvements in operating efficiency. We are on track to meet or exceed our strategic targets."

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