Pension market growth is at the heart of Legal & General’s strong 2025 half‑year results. The UK‑based financial services leader delivered a 6% rise in operating profit to £859 million. This performance reflects robust demand for pension risk transfer (PRT) deals, steady asset management results, and an expanding retail customer base.
Earnings Strength Backed by Retirement Services
Core operating earnings per share (EPS) increased 9% to 10.94p, in line with the company’s goal of 6–9% annual EPS growth through 2027.
The institutional retirement division posted an 11% operating profit rise to £618 million, fuelled by £5.2 billion in global PRT transactions.
Companies are increasingly transferring pension liabilities to insurers, helping to drive pension market growth. This trend reflects both corporate demand for risk reduction and investor appetite for stable returns.
Asset Management Delivers Despite Challenges
The asset management division faced a 6% profit dip to £202 million, pressured by market volatility and a weaker US dollar.
However, revenue grew 2% thanks to a focus on higher‑margin products. Total assets under management reached £1.1 trillion, with 43% sourced internationally.
The private markets portfolio expanded to £65 billion following the acquisition of Proprium Capital Partners. This supports diversified investment strategies and positions the company to benefit from pension market growth in global markets.
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Retail Business Expands Customer Base
The retail division grew profits by 3% to £237 million. Its customer base reached 12.4 million, with workplace pension assets surpassing £100 billion. Net new flows in workplace pensions rose 21% to £4 billion.
By enhancing digital services and personalising offers, Legal & General is strengthening long‑term customer relationships. These improvements complement broader pension market growth by increasing retirement savings participation.
Partnerships Strengthen Future Outlook
A strategic alliance with Blackstone is boosting Legal & General’s credit platforms and annuity business.
This partnership expands the company’s reach in the US and Asia‑Pacific, positioning it to capture opportunities linked to pension market growth.
Such collaborations combine resources, expertise, and market access — ensuring resilience even in shifting economic conditions.
Read about Blackstone partnerships.
Dividend Growth Shows Confidence
The interim dividend rose 2% to 6.12p per share. The company also reaffirmed its plan to return more than £5 billion to shareholders by 2027.
With a 217% solvency ratio and 3% capital generation growth, investor confidence remains high.
For shareholders, sustained dividends tied to pension market growth offer both income and long‑term stability.
Market Reaction and Long‑Term Prospects
Despite the positive results, shares fell 8.8p to 252.7p on announcement day likely due to high expectations already priced in.
Analysts, however, praised the company’s strategic execution and strong operational performance.
Looking forward, Legal & General is well‑placed to grow. Ongoing PRT deals, a diversified investment portfolio, and retail expansion will continue to benefit from global pension market growth.
Why Pension Growth Matters
The company’s 2025 results show how vital pension growth is to the broader financial sector.
From risk‑transfer deals to cross‑border investment strategies, Legal & General’s initiatives strengthen both investor returns and customer security.
For investors, this means exposure to a long‑term growth sector. For customers, it ensures access to reliable retirement solutions backed by a financially robust provider.
Legal & General’s 2025 half‑year performance is proof that pension market growth remains a powerful driver of financial success. With strategic partnerships, diversified investments, and expanding retail services, the company is positioned for sustained profitability in the years ahead.
