Legal & General (L&G) has reported a "strong financial performance" in 2025, as its core operating profit jumped by 6% year-on-year to £1.62bn.

However, this figure fell below the financial services provider’s forecast of £1.65bn.

L&G’s profit before tax increased by 143% to £807m in the year to 31 December, reflecting investment variance from core businesses and corporate investments as well as M&A and restructuring costs.

Meanwhile, its core earnings per share grew by 9% in line with guidance to just over 20 pence.

As part of its full-year results, L&G also announced a new £1.2bn share buyback scheme, which is the largest in its history. Alongside 2% dividend per share growth in 2026, the firm expects to return £2.4bn to shareholders in the current year.

Chief executive officer at L&G, António Simões, said: "Today we're reporting a strong financial performance for 2025, and meaningful progress in reshaping L&G. We have addressed legacy complexities, strengthened our foundations and we are driving forward our growth strategy across our core businesses.

"As a sharper, more focused business, we are well-positioned to capitalise on the structural, growing demand for long-term investments and retirement income."

L&G said it has started 2026 with "stronger foundations, a sharper portfolio and increased momentum", and expects operating EPS growth to be at the top end of its 6-9% three-year target range.

It remains confident in delivering on its asset management profit target of between £500m and £600m by 2028, while it expects negligible operating profit in its corporate investments unit in 2026 as it continues to dispose of the portfolio.

Following the announcement, shares in L&G fell by over 6%.

Head of markets at AJ Bell, Dan Coatsworth, concluded: "Legal & General failed to hit market forecasts for profit growth in 2025, causing the shares to weaken and seeing £750m wiped off its market value.

"Core operating profit of £1.62bn was marginally below the £1.65bn forecast, which overshadowed the launch of its largest ever share buyback. The earnings miss is unfortunate but not catastrophic. Most investors own this story for the juicy dividends and they’re still flowing like fine wine on a summer’s day."

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