Simpler, more focused L&G delivers 11% Core Operating EPS growth
Download our 2026 Half Year Results:
António Simões, CEO:
"We are making good progress in becoming a simpler, more focused L&G. Core operating profit grew 7%, core operating EPS increased 11%, and we have completed c.£450m of our £1.2bn buyback programme. We have improved dividend cover by earnings and capital generation. We are pleased to confirm a 2% interim dividend increase as we continue to deliver strong and sustainable shareholder returns.
"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."
Strong financial performance1
- Core Operating Profit of £918m up 7% and Core operating EPS up 11%
- FY26 Core Operating EPS expected to be above the top end of our 6-9% target range
- IFRS Profit Before Tax2 of £1,997m reflecting a gain on the disposal of our non-retained US business
- Solvency II Capital Generation (OSG) of £790m up 3% and SII OSG per share of 14.16p, up 7%
- Solvency II Coverage Ratio of 201%, remaining well above our 160-190% operating target range
- Asset Optimisation of £288m (up 36%); increasing our guidance to >£400m per annum
Leading businesses well-positioned in growing markets
- Institutional Retirement: £5.7bn of Global PRT (pension risk transfer) written or exclusive as at end-July
- Asset Management: Cost income ratio reduced 5ppts to 71%; £1.2trn global AUM, of which Private Markets £79bn (up 22%); ANNR3 of £23m and fee margin expansion to 9.6bps, total UK DC assets up 23% to £236bn
- Retail: Retail Annuities volumes of £1.2bn and Workplace net flows of £6.2bn as at end-July. Workplace DC Assets Under Administration up 27% to £128bn
Synergistic business model
- >50% of Asset Management ANNR3 in first half of 2026 supported by controlled distribution4
- c.98% of UK PRT volumes transacted with our long-standing clients in Asset Management in H1 2026 with c.90% of Annuity assets managed by Asset Management
- c.95% of Workplace AUA managed by Asset Management, Private Markets Access Fund now over £3bn
Attractive sustainable capital returns
- Dividend per share of 6.24p, up 2%, and £1.2bn buyback underway with c.£450m completed at end-July
- Returning more than £5bn to shareholders over 2025-2027
Hear from António Simões as he reflects on our performance and the progress we’ve made in the first half of the year:
1The Group uses a number of Alternative Performance Measures to enhance understanding of the Group’s performance as defined on pages 73-75.
2IFRS Profit before tax see Note 2.01.
3Annualised Net New Revenue.
4Controlled distribution refers to flows of assets from our PRT, individual annuities or Workplace businesses.
Notes to editors
Established in 1836, L&G is one of the UK's leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY25) of which c. 43% (c. £0.5 trillion) is international. We have a highly synergistic business model, which continues to drive strong returns. We are a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.