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Legal & General
(LSE:LGEN)
Select Model
Select Model
Rating:56Neutral
Price Target:
314.00 p
â–²(8.54% Upside)
Action:Reiterated
Date:08/06/26
The score is held back primarily by weaker financial quality (compressed profitability, higher leverage, and historically volatile cash flow), partially offset by strong technical momentum and a high dividend yield. Valuation remains a constraint due to a high P/E ratio.
Positive Factors
Business model diversification
The combination of long-duration underwriting (annuities, PRT) and asset management yields diversified, recurring revenue streams. This mix insulates earnings cycles: management fees provide steady fee income while underwriting captures long-term spreads, supporting durable cash generation across market cycles.
Negative Factors
Rising leverage
A materially more geared balance sheet reduces capital cushion for writing long-duration liabilities and increases sensitivity to interest and credit stress. Higher debt and thinner equity can constrain growth, elevate funding costs, and limit ability to absorb adverse actuarial or market shocks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Business model diversification
The combination of long-duration underwriting (annuities, PRT) and asset management yields diversified, recurring revenue streams. This mix insulates earnings cycles: management fees provide steady fee income while underwriting captures long-term spreads, supporting durable cash generation across market cycles.
Read all positive factors
Legal & General (LGEN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£15.88B
Dividend Yield7.62%
Average Volume (3M)23.40M
Price to Earnings (P/E)24.8
Beta (1Y)1.16
Revenue Growth136.58%
EPS Growth192.71%
CountryUK
Employees10,500
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)0.12
Shares Outstanding5,480,447,000
10 Day Avg. Volume21,666,117
30 Day Avg. Volume23,402,587
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)6.55
Price to Sales (P/S)0.62
P/FCF Ratio3.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£277.80Price Target Upside-3.98% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering10
EPS Forecast (FY)0.26
Revenue Forecast (FY)£14.59B
Legal & General Business Overview & Revenue Model
Company Description
Legal & General Group Plc (LGEN.L) is a prominent financial services company delivering a diverse range of insurance products and related services across the United Kingdom, the United States, and numerous international markets. Its operations are...
How the Company Makes Money
Legal & General makes money mainly by (1) underwriting and managing long-term insurance and retirement liabilities and (2) managing assets for clients. In its retirement/institutional business, it earns profits by pricing and writing annuities and...
Legal & General Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
44
Neutral
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.13B | 24.05B | 23.21B | 25.77B | 34.10B | 19.36B |
| Gross Profit | 66.42B | 16.86B | 15.98B | 17.40B | 26.61B | 14.97B |
| EBITDA | 1.33B | 1.11B | 721.00M | 542.00M | 1.23B | 2.93B |
| Net Income | 673.00M | 498.00M | 43.00M | 457.00M | 783.00M | 2.05B |
Balance Sheet | ||||||
| Total Assets | 613.40B | 582.27B | 544.17B | 522.10B | 506.32B | 575.46B |
| Cash, Cash Equivalents and Short-Term Investments | 14.52B | 17.10B | 18.58B | 22.54B | 36.26B | 16.49B |
| Total Debt | 26.56B | 25.11B | 7.70B | 6.12B | 5.48B | 5.39B |
| Total Liabilities | 610.73B | 579.96B | 540.66B | 517.31B | 494.18B | 564.51B |
| Stockholders Equity | 2.65B | 2.28B | 3.55B | 4.83B | 5.56B | 10.98B |
Cash Flow | ||||||
| Free Cash Flow | 2.03B | 4.50B | -4.54B | -14.48B | 20.28B | -374.00M |
| Operating Cash Flow | 2.23B | 4.55B | -4.45B | -14.24B | 20.46B | -169.00M |
| Investing Cash Flow | 675.00M | 170.00M | 239.00M | -422.00M | -226.00M | 133.00M |
| Financing Cash Flow | -1.54B | -2.93B | 331.00M | -556.00M | -1.03B | -1.50B |
Legal & General Technical Analysis
Positive
289.30
Price Trends
291.38
Positive
276.16
Positive
256.62
Positive
Market Momentum
0.24
Negative
51.97
Neutral
68.80
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:LGEN, the sentiment is Positive. The current price of 289.3 is below the 20-day moving average (MA) of 292.07, below the 50-day MA of 291.38, and above the 200-day MA of 256.62, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 68.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:LGEN.
Legal & General Risk Analysis
Legal & General disclosed 8 risk factors in its most recent earnings report. Legal & General reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Legal & General Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £4.41B | 11.37 | 7.37% | 5.87% | 2.19% | 19.78% | |
74 Outperform | £2.47B | 21.12 | 8.39% | 3.44% | 191.46% | ― | |
74 Outperform | £9.08B | 13.30 | 15.55% | 3.76% | 17.81% | 93.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | £1.70B | 13.23 | 8.95% | 6.10% | 5.39% | 85.13% | |
56 Neutral | £15.88B | 24.78 | 27.28% | 7.62% | 136.58% | 192.71% | |
55 Neutral | £8.48B | -74.84 | -3.86% | 6.14% | 67.89% | -87.40% |
* Financial Sector Average
GB:LGEN
Legal & General
287.70
71.23
32.90%
GB:RAT
Rathbones Group PLC
1,640.00
-40.19
-2.39%
GB:SDR
Schroders
585.00
227.40
63.59%
GB:ABDN
Aberdeen Group
248.60
78.13
45.83%
GB:QLT
Quilter
186.10
32.36
21.05%
GB:MNG
M&G Plc
345.00
105.28
43.91%
Legal & General Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Legal & General posts strong H1 results and boosts shareholder returns
Positive
Aug 5, 2026
Legal General reported strong half-year results for 2026, with core operating profit up 7% and core operating EPS up 11%, alongside higher Solvency II capital generation and a coverage ratio of 201%, well above its target range. Asset optimisatio...
Regulatory Filings and Compliance
Legal & General Executives Increase Holdings Through Employee Share Plan
Positive
Aug 4, 2026
Legal General has disclosed that five senior executives, including the group chief financial officer and chief operating officer, purchased ordinary shares under the company’s Employee Share Plan. The transactions, executed on 3 August 2026...
Business Operations and StrategyDelistings and Listing Changes
Legal & General Adds Shares from Employee Scheme to LSE Listing
Neutral
Aug 3, 2026
Legal General Group Plc has admitted 169,845 new ordinary shares of £0.025 each to trading on the Main Market of the London Stock Exchange, under its existing block admissions. These shares were allotted through the company’s Sharesave...
Business Operations and StrategyStock Buyback
Legal & General cancels 1.7m shares in ongoing buyback
Positive
Aug 3, 2026
Legal General Group Plc has repurchased 1,749,021 of its ordinary shares between 27 and 31 July 2026 through its broker Barclays Capital Securities Limited, as part of the share buyback programme launched in March 2026. The repurchased shares wil...
Stock BuybackRegulatory Filings and Compliance
Legal & General Updates Share Capital and Voting Rights After Buyback
Neutral
Aug 3, 2026
Legal General Group Plc has confirmed that as of 31 July 2026 its share capital comprised 5,528,046,046 ordinary shares of 2.5 pence each, all carrying voting rights and with no shares held in treasury. This figure serves as the reference denomin...
Regulatory Filings and Compliance
Legal & General Discloses Share Purchase by Non-Executive Director
Neutral
Aug 3, 2026
Legal General Group Plc has disclosed a transaction by non-executive director Mark Jordy, in line with UK Market Abuse Regulation requirements. Jordy purchased 3,494 ordinary shares of £0.025 each in the company at a price of £3.026 per...
Business Operations and StrategyExecutive/Board Changes
Legal & General appoints senior risk expert Stephen Shelley to board
Positive
Jul 30, 2026
Legal General Group Plc has strengthened its board by appointing Stephen Shelley as an independent non‑executive director, effective 1 December 2026, with roles on the Group Risk Committee and Group Audit Committee. Shelley, currently Group...
Business Operations and StrategyStock Buyback
Legal & General Cancels 1.15m Shares in Ongoing Buyback
Positive
Jul 27, 2026
Legal General Group has continued executing its previously announced share buyback programme, repurchasing 1,150,000 ordinary shares between 20 and 24 July 2026 via its broker Barclays Capital Securities across multiple trading venues. The repurc...
Business Operations and StrategyStock Buyback
Legal & General Cancels 1.15 Million Shares in Ongoing Buyback
Positive
Jul 20, 2026
Legal General Group has repurchased 1,150,000 ordinary shares between 13 and 16 July 2026 through its broker Barclays Capital Securities under a previously announced share buyback programme. The shares, bought across several trading venues at pri...
Business Operations and StrategyStock Buyback
Legal & General Cancels 4.15 Million Shares in Ongoing Buyback
Positive
Jul 13, 2026
Legal General has repurchased 4,150,000 ordinary shares between 7 and 10 July 2026 through its broker Barclays Capital Securities, as part of the share buyback programme launched in March. The shares, bought across multiple trading venues at pric...
Business Operations and StrategyPrivate Placements and Financing
Legal & General cuts debt with £500m note buyback
Positive
Jul 8, 2026
Legal General Group Plc has completed tender offers for a range of subordinated and senior sterling and dollar notes, accepting a total of £499,999,175 equivalent for purchase and setting specific acceptance amounts for each series. The grou...
Business Operations and StrategyPrivate Placements and Financing
Legal & General Nears GBP500m Debt Buyback in Liability Management Drive
Positive
Jul 8, 2026
Legal General has reported indicative results for its cash tender offers on a mix of U.S. dollar Tier 2 subordinated notes and several sterling-denominated senior notes, after confirming settlement of new notes that satisfy its financing conditio...
Business Operations and StrategyStock Buyback
Legal & General Cancels 6 Million Shares in Ongoing Buyback
Positive
Jul 6, 2026
Legal General Group Plc has repurchased 6,061,919 ordinary shares between 29 June and 3 July 2026 through its broker Barclays Capital Securities Limited, as part of the share buyback programme announced in March. The shares, bought across several...
Business Operations and StrategyPrivate Placements and Financing
Legal & General to Issue £500m Contingent Convertible Tier 1 Notes
Positive
Jul 3, 2026
Legal General Group Plc has published an offering memorandum for the planned issue of £500 million Fixed Rate Reset Perpetual Restricted Tier 1 Contingent Convertible Notes, scheduled to be issued on 7 July 2026. The notes are intended to be...
Regulatory Filings and Compliance
Legal & General Executives Acquire Shares Under Employee Plan
Positive
Jul 2, 2026
Legal General Group Plc has disclosed share purchases by several senior executives and persons discharging managerial responsibilities under its Employee Share Plan. Group Chief Risk Officer Chris Knight, Group Chief Financial Officer Andrew Kail...
Business Operations and StrategyDelistings and Listing Changes
Legal & General Adds Shares from Employee Scheme to London Listing
Neutral
Jul 1, 2026
Legal General Group Plc has admitted 2,915,374 new ordinary shares of £0.025 each to trading on the Main Market of the London Stock Exchange under its existing block admissions related to the company’s Sharesave (SAYE) Scheme. Followin...
Stock BuybackRegulatory Filings and Compliance
Legal & General updates total voting rights after share buyback and cancellation
Neutral
Jul 1, 2026
Legal General Group Plc has reported that, as of 30 June 2026, its share capital comprised 5,541,437,141 ordinary shares of 2.5p each, all carrying voting rights, with no shares held in treasury. This figure serves as the reference number of voti...
Regulatory Filings and Compliance
Legal & General discloses director share purchase by non-executive board member
Positive
Jul 1, 2026
Legal General has disclosed a transaction involving non-executive director Mark Jordy, in line with UK Market Abuse Regulation requirements. Jordy purchased 3,683 ordinary shares of Legal General at £2.871 per share on 1 July 2026 via the L...
Business Operations and StrategyPrivate Placements and Financing
Legal & General sets £500m cap for multi-series debt tender linked to new Tier 1 issue
Positive
Jun 30, 2026
Legal General Group Plc has launched cash tender offers for a series of outstanding sterling and U.S. dollar notes, including US$850 million Tier 2 subordinated notes due 2047 and multiple sterling-denominated senior notes maturing between 2031 a...
Business Operations and StrategyPrivate Placements and Financing
Legal & General launches liability management tender for long‑dated bonds
Positive
Jun 30, 2026
Legal General Group Plc has launched cash tender offers for a series of outstanding U.S. dollar Tier 2 subordinated notes due 2047 and several sterling-denominated senior notes maturing between 2031 and 2041, all issued by the group or Legal Gen...
Business Operations and StrategyStock Buyback
Legal & General Cancels 4.6 Million Shares in Ongoing Buyback
Positive
Jun 29, 2026
Legal General Group Plc has repurchased 4,639,690 of its ordinary shares between 23 and 26 June 2026 under its ongoing share buyback programme, executed through its broker Barclays Capital Securities Limited across multiple trading venues. The re...
Regulatory Filings and Compliance
Legal & General discloses share sale by senior retirement executive
Neutral
Jun 22, 2026
Legal General has disclosed a transaction by Gareth Mee, Chief Executive Officer of Institutional Retirement and a person discharging managerial responsibilities, involving the sale of 70,704 ordinary shares in the company. The shares, each carry...
Business Operations and StrategyStock Buyback
Legal & General cancels nearly 2m shares in latest buyback tranche
Positive
Jun 22, 2026
Legal General has repurchased 1,988,916 of its ordinary shares between 15 and 17 June 2026 through its broker Barclays Capital Securities, as part of the share buyback programme launched in March. The repurchased shares will be cancelled, reducin...
Business Operations and StrategyStock Buyback
Legal & General Cancels 3.8 Million Shares in Ongoing Buyback
Positive
Jun 15, 2026
Legal General Group has repurchased 3,821,565 ordinary shares between 8 and 11 June 2026 as part of its ongoing share buyback programme, executing the trades via Barclays Capital Securities across multiple trading venues. The repurchased shares w...
Regulatory Filings and Compliance
Legal & General Executives Reinvest Dividends in Company Shares
Positive
Jun 9, 2026
Legal General Group Plc reported that several senior executives, including the Group COO, CFO and other PDMRs, purchased ordinary shares through the company’s Employee Share Plan Dividend Reinvestment Plan on 5 June 2026 at £2.71 per s...
Business Operations and StrategyStock Buyback
Legal & General Cancels Over 6.1 Million Shares in Ongoing Buyback
Positive
Jun 8, 2026
Legal General has repurchased 6,188,720 ordinary shares between 1 June and 5 June 2026 through its broker Barclays Capital Securities Limited, as part of the share buyback programme launched in March. The shares, bought across multiple trading ve...
Regulatory Filings and Compliance
Legal & General Directors Increase Holdings via Dividend Reinvestment Plan
Positive
Jun 8, 2026
Legal General has disclosed that several directors and senior executives acquired ordinary shares under the company’s Dividend Reinvestment Plan on 4 June 2026. Non-executive directors Laura Wade-Gery, Nilufer Kheraj and George Lewis, along...
Business Operations and StrategyRegulatory Filings and Compliance
Legal & General Executives Buy Shares Under Employee Plan
Positive
Jun 2, 2026
Legal General has disclosed that several senior executives, including the group chief risk officer, group chief financial officer and other PDMRs, purchased ordinary shares in the company under its Employee Share Plan. The transactions, executed ...
Regulatory Filings and Compliance
Legal & General Discloses Share Option Exercise by Chief Risk Officer
Neutral
Jun 2, 2026
Legal General has disclosed a transaction by its Group Chief Risk Officer, Chris Knight, under its Savings Related Share Option Plan. Knight exercised options over ordinary shares granted in the 2021 ShareSave Plan and subsequently sold 9,130 sha...
Regulatory Filings and Compliance
Legal & General discloses share purchase by non-executive director
Neutral
Jun 1, 2026
Legal General has disclosed a share transaction by non-executive director Mark Jordy, in line with UK Market Abuse Regulation requirements. Jordy purchased 980 ordinary shares in the company at £2.684 per share on 1 June 2026 through the Lon...
Business Operations and StrategyStock Buyback
Legal & General Cancels 5.5m Shares in Ongoing Buyback Drive
Positive
Jun 1, 2026
Legal General Group has repurchased 5,493,017 of its ordinary shares between 27 and 29 May 2026 as part of the share buyback programme it launched in March. The shares, acquired via broker Barclays Capital Securities across multiple trading venue...
Stock BuybackRegulatory Filings and Compliance
Legal & General Updates Share Capital and Voting Rights After Buyback
Positive
Jun 1, 2026
Legal General has confirmed that, as of 29 May 2026, its share capital comprised 5,558,653,675 ordinary shares of 2.5 pence each, all carrying voting rights, and that it holds no shares in treasury, establishing the relevant baseline for sharehol...
Business Operations and StrategyDelistings and Listing Changes
Legal & General Adds Sharesave Scheme Stock to London Listing
Neutral
Jun 1, 2026
Legal General has admitted 118,837 new ordinary shares of £0.025 each to trading on the Main Market of the London Stock Exchange under its existing block admission. The shares, allotted through the company’s Sharesave (SAYE) scheme, ar...
Business Operations and StrategyStock Buyback
Legal & General Cancels 12.6 Million Shares Under Ongoing Buyback
Positive
May 26, 2026
Legal General Group has repurchased 12,578,843 ordinary shares between 18 and 22 May 2026 through its broker Barclays Capital Securities across multiple London trading platforms, with the shares to be cancelled. The transactions are part of the s...
Business Operations and StrategyRegulatory Filings and Compliance
Legal & General to Switch External Auditor to Deloitte from 2028
Neutral
May 26, 2026
Legal General Group has announced that, following a formal competitive tender overseen by its audit committee, it intends to appoint Deloitte as its external auditor for the financial year ending 31 December 2028 onwards, subject to shareholder a...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Legal & General Wins Strong Investor Backing at AGM and GM
Positive
May 21, 2026
Legal General shareholders approved all resolutions at the company’s Annual General Meeting in London, including the receipt of 2025 financial statements, a final dividend of 15.67 pence per share and the election or re-election of all nomi...
Regulatory Filings and Compliance
Legal & General Discloses Share Sale by Chief Risk Officer
Neutral
May 20, 2026
Legal General Group Plc disclosed that its Group Chief Risk Officer, Chris Knight, classified as a person discharging managerial responsibilities, has sold 49,293 ordinary shares in the company. The transaction, executed on 19 May 2026 at a price...
Business Operations and StrategyStock Buyback
Legal & General Cancels 24.3 Million Shares in Ongoing Buyback
Positive
May 18, 2026
Legal General has repurchased 24,290,384 of its ordinary shares between 11 and 15 May 2026 as part of the share buyback programme launched in March. The shares, bought via Barclays Capital Securities on multiple trading venues at prices generally...
Business Operations and StrategyStock Buyback
Legal & General Cancels 16.9 Million Shares in Ongoing Buyback
Positive
May 11, 2026
Legal General Group Plc has repurchased 16,869,889 ordinary shares between 5 and 8 May 2026 through its broker Barclays Capital Securities, as part of the share buyback programme announced in March. The repurchased shares will be cancelled, reduc...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.