olivLaw · European equity research
Legal & General Group Plc LGEN.L
United Kingdom · London Stock Exchange · ISIN GB0005603997 · Vertical: Listed companies from United Kingdom
Legal & General Group Plc is a British insurance and asset management group with a leading global position in pension risk transfer (PRT) for company pension schemes. In 2025 it reported higher core operating profit while simplifying its portfolio after the Meiji Yasuda partnership and planning to return over 5 billion pounds to shareholders over 2025-2027. Core operating profit of 1,623 million pounds in 2025. Global PRT volumes of 11.8 billion pounds in 2025.
At the close of 05 Nov 2026, Legal & General Group Plc (LGEN.L) stock was 3.10 GBP (−0.19% on the day), with market capitalisation 18.4 bn GBP, P/E 31.8 on diluted EPS of 0.10 GBP over the last 12 months, dividend yield 6.92%, beta 0.71, 52-week range 2.34–3.16 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 69.7
- strong (55–70)
- Bollinger (20, 2)
- 2.87 – 3.12
- in the upper half of the band · %B 0.91 · band width 8.3%
- SMA 50 / 200
- 2.95 / 2.78
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.04 / 0.03
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +6.8% | −0.6% | +7.5 pp | — |
| 3 months | −0.6% | −4.2% | +3.6 pp | — |
| 6 months | +23.4% | +4.3% | +19.1 pp | — |
| Year to date | +18.4% | +7.5% | +10.9 pp | — |
| 1 year | +28.3% | +9.9% | +18.4 pp | +5.8% |
| 3 years | +39.7% | +49.8% | −10.2 pp | +26.3% |
| 5 years | +5.9% | +42.8% | −37.0 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 33 percentile of its own 3-quarter history (min 26.9, median 34.5, max 80.3; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1.7 bn | 1.6 bn | 2.2 bn |
| Revenue YoY | unavailable | −5.7% | +33.2% |
| Net income | 457.0 m | 191.0 m | 592.0 m |
| Net income YoY | unavailable | −58.2% | +209.9% |
| Diluted EPS | 0.07 | 0.03 | 0.10 |
| Diluted EPS YoY | unavailable | −60.7% | +240.6% |
| net % | 26.5% | 11.7% | 27.3% |
| Free cash flow | unavailable | unavailable | unavailable |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 17.1 bn GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 2.3 bn GBP
- Total assets
- 582.3 bn GBP
- Debt / equity
- unavailable
- Current ratio
- unavailable
- ROE
- 20.3%
- ROA
- 0.1%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 1.7 bn | 1.6 bn | 2.2 bn | esef· 07 Apr 2026verified |
| Interest expense | 347.0 m | 273.0 m | 282.0 m | esef· 07 Apr 2026verified |
| Pre-tax income | 195.0 m | 448.0 m | 824.0 m | esef· 07 Apr 2026verified |
| Income tax | -248.0 m | 318.0 m | 304.0 m | esef· 07 Apr 2026verified |
| Net income | 457.0 m | 191.0 m | 592.0 m | esef· 07 Apr 2026verified |
| Diluted EPS | 0.07 | 0.03 | 0.10 | esef· 07 Apr 2026verified |
| Dividend per share | 0.20 | 0.21 | 0.21 | esef· 07 Apr 2026verified |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 20.5 bn | 16.7 bn | 17.1 bn | esef· 07 Apr 2026verified |
| Property, plant & equipment, net | 433.0 m | 395.0 m | 332.0 m | esef· 07 Apr 2026verified |
| Goodwill | 73.0 m | 30.0 m | 54.0 m | esef· 07 Apr 2026verified |
| Intangibles (excl. goodwill) | 477.0 m | 450.0 m | 341.0 m | esef· 07 Apr 2026verified |
| Total assets | 522.1 bn | 544.2 bn | 582.3 bn | esef· 07 Apr 2026verified |
| Total liabilities | 517.3 bn | 540.7 bn | 580.0 bn | esef· 07 Apr 2026verified |
| Equity | 4.8 bn | 3.5 bn | 2.3 bn | esef· 07 Apr 2026verified |
| Shares outstanding at year end | 6.2 bn | 6.6 bn | 5.9 bn | esef· 07 Apr 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -14.2 bn | -4.4 bn | 4.5 bn | esef· 07 Apr 2026verified |
| Investing cash flow | -422.0 m | 239.0 m | 170.0 m | esef· 07 Apr 2026verified |
| Financing cash flow | -556.0 m | 331.0 m | -2.9 bn | esef· 07 Apr 2026verified |
| Share repurchases | 18.0 m | 33.0 m | 20.0 m | esef· 07 Apr 2026verified |
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 3 of at least 6
- score weight coverage: 22.9% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 18.4 bn GBP
Key indicators
Coverage and freshness
Score by group
23% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 3 of at least 6; score weight coverage: 22.9% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 27.3% | 80 (vs peers) | 27% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | unavailable | unavailable | — |
| P/E (TTM) · Valuation | 31.8x | 6 (vs peers) | 45% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | 0.1% | 2 (on a fixed band) | 27% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partialunavailable · 0/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality· partial80/100 · 1/3 factors with a value
- Returns· partial2/100 · 1/2 factors with a value
- Valuation· partial6/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
LEGAL & GENERAL GROUP PLC (LGEN.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 2.2 bn GBP in 2025; YoY growth 33.2%; net margin 27.3%; ROE 24.5%.
The estimated value range is 1.60–2.15 GBP per share (median of 2 methods, agreement: high); assumptions are illustrative. Against the central value of 1.87 GBP, the price of 3.10 GBP leaves a potential of -39.8% (value / price − 1) and a margin of safety of -66.2% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 3 of at least 6; score weight coverage: 22.9% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 27.3%
What contradicts it
- P/E (TTM): 31.8x
- Shareholder yield (distributions): 0.1%
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, Current ratio, EV/EBITDA, FCF yield, Payout ratio (FCF).
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| LGEN.LLegal & General Group PLC | 18.4 bn | 31.8 | 24.5% | 27.3% | +33.2% | +26% / +35% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for LGEN.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 2.08 Total return -30% · Per year -30% | 3.66 Total return 22% · Per year 22% | 5.49 Total return 81% · Per year 81% |
| 3 years | 2.47 Total return -11% · Per year -4% | 4.84 Total return 69% · Per year 19% | 7.90 Total return 171% · Per year 39% |
| 5 years | 2.93 Total return 11% · Per year 2% | 6.40 Total return 131% · Per year 18% | 11.38 Total return 300% · Per year 32% |
- Exit P/E± 1.21
- Net margin± 0.85
- Annual revenue growth± 0.63
- Annual dilution± 0.07
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Legal & General Group Plc is a British insurance and asset management group with a leading global position in pension risk transfer (PRT) for company pension schemes. In 2025 it reported higher core operating profit while simplifying its portfolio after the Meiji Yasuda partnership and planning to return over 5 billion pounds to shareholders over 2025-2027. Core operating profit of 1,623 million pounds in 2025 1. Global PRT volumes of 11.8 billion pounds in 2025 1.
SWOT
Strengths
- A leading global position in company pension risk transfer, supported by a synergistic model linking insurance and investment.
- Strong Solvency II coverage and a steady profit stream from the annuities portfolio, reflected in rising operating profit.
- A large Retail customer base and a consolidated DC platform that benefits from the shift from DB to DC pensions.
Weaknesses
- Asset Management profit has been broadly flat, and the report acknowledges that the cost-to-income ratio has risen.
- Revaluations in real estate and growth equity reduced reported profit, showing exposure to alternative assets.
- Portfolio and reporting complexity was recognised by management as an area where transparency needs to improve.
Opportunities
- The PRT markets in the US, Canada and the UK have a strong 2026 pipeline, and the group has positions in all three.
- The Blackstone partnership could extend access to private credit and grow Asset Management assets.
- Digital infrastructure, real estate funds and private investments could support growth in managed assets.
Threats
- Adverse macroeconomic conditions can reduce asset values, particularly in real estate and growth equity.
- Fee pressure in asset management could limit revenue growth.
- Regulatory and capital requirement changes, including ICS standards, could alter the reported solvency position.
Risks
- Investment market performancehigh
Developments in markets and the economy could affect earnings, profitability and surplus capital, according to the principal risks reported 1.
- Counterparty riskmedium
The group is exposed to financial loss if debt issuers or other counterparties fail to meet their obligations 1.
- Demographic assumptions and reservesmedium
Changes in demographic experience, regulation, costs or taxation could require revisions to reserves 1.
- Regulatory and capital changesmedium
New capital requirements, including ICS, could influence the reported solvency position and dividend policy 1.
- Operational and IT riskslow
A material failure in business processes or IT security could produce financial loss or reputational damage 1.
Investment thesis
What would need to be true (bull case)
- If the PRT pipeline converts into transactions, profit growth in Institutional Retirement could support the medium-term growth target.
- A high Solvency II coverage ratio and capital generation could allow continued shareholder returns without reducing growth capacity.
- If Asset Management grows revenue faster than costs, the segment could contribute more to group profit.
What would break the thesis
- Revaluations in real estate and growth equity could continue if the macroeconomic environment stays unfavourable, reducing reported profit.
- Fee pressure and competition in asset management could limit revenue growth in that segment.
- If margins on new annuities stay thin because of tighter credit spreads, returns on new business could decline.
What to watch
- Execution of the first tranche of the share buyback and the remainder of the planned returnnext 12 months
- UK PRT volumes compared with the projection of around 50 billion pounds2026
- Progress on Corporate Investments disposals, with 0.5 billion pounds of remaining portfolio value at end-20252026
- Core operating EPS growth against the 6-9% target range, toward the top end2026
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
The group runs three core businesses: Institutional Retirement, which offers PRT solutions to company pension schemes, Asset Management, which provides public and private investment solutions, and Retail, which covers workplace savings, retirement and protection. The company says its synergistic model, combining insurance and investment capabilities, supports its leading PRT position 1. Corporate Investments holds non-strategic assets that are being sold 1.
In 2025 the group focused on its three core businesses after selling its US business to Meiji Yasuda, keeping an economic interest in US PRT through reinsurance. The Blackstone partnership extends its access to private credit, and the purchase of a 75% stake in Proprium Capital Partners adds real estate expertise 1. The Group CFO, in post since December, stated a goal of greater transparency in reporting 1.
On capital, the report shows a Solvency II coverage ratio of 210% after the Meiji Yasuda transaction and a medium-term operating range of 160% to 190%, to which the group says it will converge as it invests in growth 1. The Solvency II surplus was 7.0 billion pounds, compared with 9.0 billion in 2024 1.
Segments
Institutional Retirement
The segment wrote 11.8 billion pounds of global PRT volumes in 2025 across 63 schemes in the UK, US and Canada, with adjusted operating profit of 1,168 million pounds 1. The largest UK PRT transaction of the year was 4.6 billion pounds, with the Ford pension schemes 1.
Market context
The group targets the three largest PRT markets in the world and expects a combined 1 trillion pounds of new business to transact over the next decade across these markets 1. In the UK, around 50 billion pounds of volumes are projected for 2026, above the previous peak of 49 billion in 2023, according to the report 1.
Asset markets are affected by difficult macroeconomic conditions, particularly in real estate and growth equity, which led to revaluations of assets in Asset Management and Corporate Investments 1. The group also noted that tighter credit spreads limit yields on newly written annuities 1.
Trends
- Shift from DB to DC pensionstailwind
Companies moving from defined benefit to defined contribution pensions create demand for the group's workplace savings platform, which secured 3.7 billion pounds of assets in 2025 1. The company says the structure of pension markets supports this transition 1.
- Demand for PRTtailwind
Record PRT transaction volumes over the last two years and a solid pipeline for 2026 suggest sustained demand for buy-in solutions 1. If the number of large transactions declines, revenue from this line could slow 1.
- Credit conditions and revaluationsheadwind
A tighter credit environment reduces margins on new assets, and value declines in real estate and growth equity affected results in Asset Management and Corporate Investments 1. If these conditions persist, profitability could be affected 1.
- Portfolio consolidation and simplificationmixed
The sale of the US business and non-strategic assets simplifies the group but also brings transaction and restructuring costs that weighed on reported profit 1. The net effect depends on how the proceeds are reinvested 1.
Competitive position
In the PRT market the group competes with other large insurers and pension funds pursuing similar transactions; the report stresses that its advantage comes from combining insurance with investment and from its scheme relationships through Asset Management 1. In asset management, fee competition is intense, and the company says fee compression across the market has been a pressure 1.
In workplace savings and retirement, competitors include DC platform providers and asset managers, and the group says it relies on scale, service and technology 1. The partnerships with Meiji Yasuda and Blackstone are used to strengthen capabilities in these segments 1.
- Other UK PRT insurers
The report does not name direct competitors; they are mentioned only in the context of the UK PRT market.
- Pension fund asset managers
Competition in index funds, ETFs and private assets, in the context of fee pressure.
- DC platform providers
Competition for workplace savings assets, where the group has its own position.
- Private asset investment firms
Competition in private credit and real estate, areas where the group is expanding its capabilities.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202507 Apr 2026
- Annual report 202420 Jan 2026
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Legal & General Group Plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.