Legal and General’s share price fell by a little over 6% on March 11, 2026, ending the day at 242p. This decline is notable as it positions the share price approximately 14% below its highs for the year, raising concerns among investors.

The company’s core operating profit for 2025 was reported at £1.62 billion, reflecting a 6% increase year on year. However, this figure fell short of the consensus forecast of £1.65 billion, which may have contributed to the negative market reaction.

In addition to the operating profit, Legal and General’s full-year Solvency II coverage ratio came in at 210%, below the expected ratio of 219%. This discrepancy might have further unsettled investors, as Solvency II ratios are critical indicators of an insurance company’s financial health.

Despite the drop in share price, Legal and General announced a 2% increase in its dividend, raising it to 21.79p per share. This move is part of the company’s strategy to return value to shareholders, which also includes a substantial £1.2 billion share buyback program.

Legal and General’s core operating earnings per share (EPS) for 2025 were reported at 20.93p, while the trailing price-to-earnings (P/E) ratio stands at 11.6. The dividend yield is now approximately 9% on a trailing basis, which may attract income-focused investors despite the recent price drop.

The market’s reaction to the latest financial results highlights the challenges faced by Legal and General in meeting investor expectations. The combination of lower-than-expected profits and solvency ratios may have overshadowed the positive aspects of the dividend increase and share buyback announcement.

As observers analyze the implications of these results, it remains to be seen how Legal and General will navigate these challenges moving forward. Details remain unconfirmed regarding the long-term impact of these financial metrics on the company’s market position.

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