Legal & General Shares Slide on Earnings Miss and Solvency Concerns
Legal & General Group Plc saw its shares tumble 6% after reporting financial results that disappointed markets. While core operating profit rose 6% to £1.62 billion, the figure fell short of analyst expectations. The solvency ratio decline to 210% from 232% further rattled investors.
The insurer's profit before tax surged 143% to £807 million, yet this remained well below consensus estimates of £1.19 billion. CEO António Simões pointed to the 9% growth in core earnings per share as evidence of business momentum, but markets focused on the weaker solvency position.
In a bold countermove, the company announced its largest-ever share buyback program totaling £1.2 billion, part of £2.4 billion in planned shareholder returns. The market response suggests investors remain unconvinced about the firm's ability to navigate current challenges while maintaining financial strength.
