Legal & General Reports 6% Profit Rise, Boosts Dividend Amid UK Pension Buyouts

Legal & General Group Plc reported a 6% rise in core operating profit to £859 million in the first half of 2025, driven by strong growth in pension risk transfers and steady commercial momentum across its three business divisions. The company's core operating earnings per share increased 9% to 10.94 pence, hitting the top end of its targeted growth range, while insurance revenue also saw growth. Legal & General has made strategic moves including the acquisition of Proprium Capital Partners, a partnership with Blackstone, and the sale of its US protection business to focus on core insurance and asset management units. Despite beating profit expectations, its solvency ratio fell to 217%, below some forecasts, partly due to a large final dividend and share buybacks, which have returned over £5 billion to shareholders within three years. The firm also declared an interim dividend increase of 2% to 6.12 pence per share, maintaining its commitment to dividend growth through 2027. CEO António Simões described the outlook as positive, with a strong pipeline of pension buyout deals and ongoing expansion in asset management.