Legal & General Launches Major Share Buyback Following Strong Results

Legal & General begins a £600 million share repurchase, part of a £2.4bn capital return, following robust 2025 profits and strong cash generation.

Legal & General Group has initiated a significant capital return to shareholders, commencing the first phase of a substantial share repurchase program. This decisive action follows the UK-based financial services provider's robust full-year 2025 results and underscores management's confidence in the firm's operational resilience and future cash flow.

Record Capital Return and Shareholder Focus

The company's strategy centers on returning approximately £2.4 billion to shareholders over the coming year. The initial tranche of this plan is now underway, representing a clear commitment to shareholder value.

Key details of the initial buyback phase include:
* A maximum monetary value of £600 million.
* An execution window running from March 12 to September 18, 2026.
* Authority to repurchase up to 476,796,751 ordinary shares.
* All shares bought back will be cancelled, thereby reducing the total number in issue.

This shareholder return is supported by a solid financial performance for 2025. Legal & General reported a 6% increase in adjusted operating profit to £1.62 billion, with earnings per share advancing by a stronger 9%. Crucially, the group's Solvency II operational capital generation rose 5% to £1.5 billion, comfortably covering the slightly elevated full-year dividend of 21.79 pence per share.

Strong Foundation for Future Growth

Despite a decline in its key Solvency II coverage ratio—a measure of capital strength for insurers—from 232% to 210%, the company remains well above its target range of 160% to 190%. Assets under management stood at £1.2 trillion at the end of December 2025.

CEO António Simões expressed confidence in the firm's strategic position, noting its readiness to capitalize on the growing global demand for retirement solutions and long-term investment products.

In equity markets, Legal & General shares are currently trading around €2.88, approximately 10% below their 52-week peak reached in February. Recent share price weakness over the past month has pushed the Relative Strength Index (RSI) to 40.6, suggesting the stock is no longer in technically overbought territory from a short-term perspective.

Looking ahead to the 2026 financial year, management has issued an optimistic outlook. The company anticipates growth in adjusted earnings per share at the upper end of its 6% to 9% medium-term target range. The dual drivers of rising operational surpluses and the largest buyback program in the company's history send a powerful signal regarding its shareholder-focused capital allocation policy.