Legal & General Group Plc · LSE:LGEN
Legal & General — H1 2026 Earnings Presentation
60 slides from Legal & General's earnings presentation, Aug 5, 2026
Slide 1: Legal & General 2026 Half Year Results
Legal & General 2026 Half Year Res
Slide 2: Forward looking statements
Forward looking statements This document may contain certain forward-looking statements relating to L&G, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty because they rela
Slide 3: Agenda
Agenda 1. H1 26 Highlights António Simões, Group CEO António Simões 2. Financial Performance Group CEO Andrew Kail, Group CFO 3. Outlook António Simões, Group CEO Andrew Kail Group CFO 4. Q&A 3
Slide 4: The best company to invest and retire with
The best company to invest and retire with #1 Income Investment Trust UK’s largest provider of £1.2trn Asset Manager with the Trusted by retirement incomes UK’s largest DC platform 13 million customers We paid over £3.7bn this year to UK savers trusted us to invest In the first half of 2026 we paid
Slide 5: Delivering reliably strong financial results
Delivering reliably strong financial results 12.15p £13.0bn Growing earnings Core operating EPS up 11% Store of Future Profit H1 25: 10.94p FY25: £13.3bn 14.16p 201% Strong capital OSG1 per share up 7% Solvency II coverage ratio H1 25: 13.24p FY25: 203% 6.24p £1.2bn Increased returns Interim dividen
Slide 6: Realising our potential with double-digit growth
Realising our potential with double-digit growth £6.9bn Total annuity £23m Annualised net new £6.2bn1 Workplace net volumes written and revenue (ANNR) growing our flows July YTD exclusive July YTD run-rate +15% +53% +35% £6.9bn £6.1bn £1.2bn £0.9bn £0.3bn £0.2bn £23m £5.7bn £6.2bn £5.0bn £5.4bn Glob
Slide 7: Institutional Retirement: Strong volumes and growing asset optimisation
Institutional Retirement: Strong volumes and growing asset optimisation Lower headline margins but long-term value remains highly attractive We are a global On £2.1bn written business IFRS Margin Day one margins reflect tight credit spreads 4.2% and competitive market environment market leader New B
Slide 8: Asset Management: Growing momentum and profitability step change
Asset Management: Growing momentum and profitability step change Growing momentum in Asset Management Cost-income +37% Fee Related Compounding effect of strong ANNR, cost Earnings control and positive markets across ratio reduces 2025/26 £23m ANNR generated Strong flows in Europe and Private Credit
Slide 9: Retail: Double-digit successes in all businesses
Retail: Double-digit successes in all businesses Capturing opportunities across our key growth markets Retail +35% Workplace Net Flows Almost £1bn of regular monthly inflows £7bn of wins not yet onboarded July YTD1 momentum Workplace end-to- On track to treble end-to-end profits by +140% end profit
Slide 10: Our scale and synergies are competitive advantages
Our scale and synergies are competitive advantages 80% of UK PRT transacted volumes >95% of Workplace DC assets are Asset Management clients1 Asset managed in-house Management 90% of Annuity Assets Private Markets Access Fund are managed internally AUM now over £3bn Institutional Retail Retirement S
Slide 11: Dividend cover is now improving
Dividend cover is now improving We have maintained progressive Over 100% Core EPS Our payout ratio is improving dividend per share coverage expected in 2026 Core EPS DPS +2% +6-9% <100% p.a. CAGR 106% 104% 107% 21.79p 20.93p H2 15.67p + H2 9.99p +11% = +2% 10.94p 12.15p H1 H1 6.12p 6.24p 2025 2026E
Slide 12: Financial Performance
Financial Performance Andrew Kail, Group CFO
Slide 13: IFRS Performance at a glance
IFRS Performance at a glance H1 25 H1 26 Institutional Retirement £618 £646m +5% Asset Management £202m £222m +10% Retail £237m £248m +5% Group expenses and debt costs £(198)m £(198)m – Core Operating Profit £859m £918m +7% Total Operating Profit £905m £920m +2% Investment Variance £(456)m £(240)m -
Slide 14: Building momentum across the Group
Building momentum across the Group Institutional Retirement Asset Management Retail £5.7bn Annualised Net £23m Workplace DC £6.2bn PRT volumes1 Jul’25: £5.2bn New Revenue H1 25: £15m net flows YTD3 Jul’25: £4.6bn 3.4% Private Markets £79bn Individual Annuities £1.2bn PRT strain2 H1 25: 1.3% AUM H1 2
Slide 15: Institutional Retirement
Institutional Retirement Financial Highlights (£m) H1 2025 H1 2026 Change (%) CSM Release 334 331 (1)% Key takeaways RA Release 67 58 (13)% Expected Investment Margin 303 346 14% Significant growth in asset optimisation, o/w Asset Optimisation 165 227 38% providing a recurring source of profit Expen
Slide 16: Institutional Retirement
Institutional Retirement Global PRT volumes (£) Global PRT Assets £73.0bn £9.5bn £57.3bn £41.8bn £5.7bn £4.7bn H2 £2.1bn H1 2017 2018 2019 2020 2021 2022 2023 2024 2025 H1 26 2017 2018 2019 2020 2021 2022 2023 2024 2025 H1 26 £93bn of PRT written or exclusive in the last decade PRT AUM has grown eve
Slide 17: Assessing the full value of new business
Assessing the full value of new business Growing allocation to sovereigns: 4.2% significant upside potential IFRS New business Margin Driven by: Does not reflect: £90.9bn1 Return on capital Tight credit spreads £73.1bn1 >14% 38% Traded 55% Sovereign-based Increased asset Credit 29% asset strategy op
Slide 18: Asset Management
Asset Management Financial Highlights (£m) H1 2025 H1 2026 Change (%) Key takeaways Fee Revenue 508 574 13% Expenses (385) (405) 5% Fee Earnings 123 169 37% Revenue growth outpacing costs as strategic success converts into profitable growth Balance Sheet Earnings 79 53 (33)% Core Operating Profit 20
Slide 19: Asset Management
Asset Management Annualised Net New Revenue Total Assets Under Management £34m £1,196bn £1,242bn £983bn £23m N/A £15m - - 0 0 2017 2018 2019 2020 2021 2022 2023 2024 2024 2025 H1 26 2017 2018 2019 2020 2021 2022 2023 2024 2025 H1 26 Continued momentum with another period of record ANNR UK’s largest
Slide 20: Accelerating ANNR with a shift to higher margins
Accelerating ANNR with a shift to higher margins Positive ANNR growth across both public and private markets Shift to higher revenue margin products despite net outflows despite industry-wide fee compression (2) bps Net Flows ANNR 25 24 23 Global market revenue margin Private Managed £3bn £19m bps +
Slide 21: Cost income ratio improving as investments take effect
Cost income ratio improving as investments take effect We have managed underlying costs down year on year Declining cost-income ratio as and generated ANNR to drive business performance revenue and cost jaws widen 13% Business driven 75% performance 74% 65% Market driven 10% performance 72% 35% £30m
Slide 22: Retail
Retail Financial Highlights (£m) H1 2025 H1 2026 Change (%) CSM Release 182 189 4% Key takeaways RA Release 37 36 (3)% Expected Investment Margin 85 92 8% Growth in release from CSM reflecting o/w Asset Optimisation 47 61 strong underlying growth and increase in asset optimisation profits, managed j
Slide 23: Retail
Retail Workplace Net Flows Workplace Assets £7.3bn £6.2bn £128.0bn YTD £4.5bn £66.6bn H2 £27.7bn H1 £3.5bn 2017 2018 2019 2020 2021 2022 2023 2024 2025 H1 26 2017 2018 2019 2020 2021 2022 2023 2024 2025 H1 26 Workplace flows drive 20% AUA CAGR over the last decade Annuity Premiums Annuity Assets £16
Slide 24: Driving scale to treble our end-to-end Workplace profits
Driving scale to treble our end-to-end Workplace profits Combined Asset Management and Retail profits +36%CAGR from DC to triple to £180m by 2028 Implied 2026 run-rate: £96m Major long-term growth driver for L&G £180m >10% YoY Revenue growth £55m H1 2026: £52m £48m +140% year on year Leveraging scal
Slide 25: Drivers of Investment Variance
Drivers of Investment Variance Insurance Business (£m) FY24 FY25 H1 26 Largely driven by IFRS17 accounting using locked-in Modelling & assumption changes (214) (285) 63 discount rate when business written Market impacts on Assets and Liabilities (362) 105 (344) Market moves, including bond yields, i
Slide 26: Change in store of future profit: H1 26
Change in store of future profit: H1 26 Analysis of change in store of future profit £204m £(110)m £13,606m £(529)m £167m £31m Underlying -1% £13,314m CSM down -2% £(94)m £12,983m Store of profit remains significant, delivering reliable future earnings Jan-2026 New New Interest Non-economic Jun-2026
Slide 27: Solvency II: H1 26 movements
Solvency II: H1 26 movements 29% Target operating range: 160-190% 14% (19)% 13.4 7.0 temporary (4)% restriction 8% 209% 203% (14)% (5)% 201% (3)% 6.4 205% FY25 OSG NBS MYL Share Dividends Other Debt & HY26 Debt HY26 HY26 Transaction Buyback paid Variances Eligibility (post- refinancing Proforma elig
Slide 28: High-quality, well managed, diversified annuity portfolio
High-quality, well managed, diversified annuity portfolio Total global portfolio Total bond portfolio: £92.9bn² Traded credit Cash & £39.4bn Other Property- Rating Geography Sector related 4% Sovereign-like assets 11% Consumer 36% services & goods £110bn1 Utilities 28% Infrastructure Sovereign £30.6
Slide 29: Cash stock as a core strength metric
Cash stock as a core strength metric Cash at Holdco has remained stable providing a strong liquidity position Stock of Holdco cash1,2 Targeting c.1x HoldCo annual £1.4bn £1.6bn cash outflows £1.4bn £1.3bn cash available at Group holding-company at 31st December 2025 2016 2017 2018 2019 2020 2021 202
Slide 30: Outlook
Le Outlook
Slide 31: H1 26 Group Financial headlines
H1 26 Group Financial headlines H1 25 H1 26 Core Operating Profit (£m) £859m £918m +7% Core Operating Earnings Per Share (p) 10.94p 12.15p +11% Dividend Per Share (p) 6.12p 6.24p +2% Solvency II Operational Surplus Generation1 (£m) £766m £790m +3% Solvency II OSG per share1 (p) 13.24p 14.16p +7% Sol
Slide 32: Positioned to capture global shifts in retirement savings
Positioned to capture global shifts in retirement savings Golden PRT decade(s) £1.0 trn Global leader in PRT Global PRT flows over next decade Defined Contribution £1.5 trn Fastest growing accelerating UK DC assets by 2034 UK Workplace platform (2024: £0.8trn) Savers seeking to £20bn #1 open market
Slide 33: A simpler, more connected L&G to accelerate growth
A simpler, more connected L&G to accelerate growth More opportunities for efficiency across L&G with work already underway Asset Management Reinvest savings selectively with short payback periods Institutional Retail Drive competitiveness and accelerate growth Retirement Early success: Asset Managem
Slide 34: On track to deliver against our targets
‘On track’ to deliver against our targets Tracking against CME targets and ambitions Core Operating EPS CAGR1 (FY24-27) 6-9% ON TRACK Group Operating Return on Equity (2025, 2026, 2027) >20% AHEAD Cumulative capital generation2 (2025, 2026, 2027) £5-6bn ON TRACK UK PRT (2024-2028) £50-65bn ON TRACK
Slide 35: Clear reasons to invest in L&G
Clear reasons to invest in L&G Leading businesses Synergistic Attractive, sustainable, and in growing markets business model growing capital returns 35
Slide 36: Q3 trading update announcement
Q3 trading update announcement 16th November 2026 L&G will provide a Q3 trading update and regular quarterly trading updates thereafter. Next scheduled market update following H1 26 results.
Slide 37: Q&A
Q&A António Simões, Group CEO Andrew Kail, Group CFO Laura Mason, CEO Retail Eric Adler, CEO Asset Management Gareth Mee, CEO Institutional Retirement Andy Sinclair, Chief Strategy and IR Officer
Slide 38: Thank you
Thank you Quarterly trading update: 16 November 2026
Slide 39: Appendix
Appendix ie
Slide 40: Key metrics: Group
Key metrics: Group Core Operating Earnings per Share (p) Operating Return on Equity (%) 70.0% 20.93p 19.04p 19.20p 54.4% H2 12.15p 34.8% 26.6% H1 2023 2024 2025 H1 26 2023 2024 2025 H1 26 Operational Surplus Generation1 (£) Core Operating Profit (£) £1821m £1623m £1531m £1534m £1461m £1530m H2 H2 £9
Slide 41: H1 26 P&L
H1 26 P&L £m H1 25 H1 26 Growth % Analysis of core operating profit Institutional Retirement 618 646 5 Asset Management 202 222 10 Retail 237 248 5 Group debt costs (112) (114) (2) Group investment projects and expenses (86) (84) 2 Core Operating Profit 859 918 7 Non-retained US business 22 - (100)
Slide 42: Divisional OSG
Le Divisional OSG
Slide 43: OSG by business – Own Funds and SCR
OSG by business – Own Funds and SCR OSG from continuing businesses1 H1 2025 H1 2026 Own Funds SCR Surplus Own Funds SCR Surplus Institutional Retirement 410 34 444 390 72 462 Of which asset optimisation 72 (3) 69 96 10 106 Retail 127 17 144 141 26 167 Of which asset optimisation 18 (1) 17 26 3 29 As
Slide 44: Our Annuity Portfolio
Lee Our Annuity Portfolio
Slide 45: Strong resilience across credit scenarios
Strong resilience across credit scenarios Credit Default Credit Downgrade Credit Spread Losses are significant but manageable relative to Impacts are largely temporary, with limited economic Spread widening impacts are mitigated by liability Group earnings capacity loss matching and temporary solven
Slide 46: The 'stock' and 'flow' impacts of lower rates
The ‘stock’ and ‘flow’ impacts of lower rates The Group targets a level of interest rate sensitivity within Own Funds to support sustainable long-term Solvency II capital generation across market scenarios. The hedge level reflects both stock and flow effects (outlined below) and is calibrated withi
Slide 47: Concerns on credit risk exposure overblown
Concerns on credit risk exposure overblown Investor Concerns on Credit What it means for L&G Spread widening We can generate increased earnings when spreads widen - upside potential We actively monitor and manage the portfolio within our risk Downgrades limits and to manage the capital position of t
Slide 48: High-quality, well managed, diversified annuity portfolio
High-quality, well managed, diversified annuity portfolio Total global portfolio Total bond portfolio: £92.9bn² Traded credit Cash & £39.4bn Other Property- Rating Geography Sector related 4% Sovereign-like assets 11% Consumer 36% services & goods £110bn1 Utilities 28% Infrastructure Sovereign £30.6
Slide 49: Traded credit: international/defensive/counter-cyclical
Traded credit: international/defensive/counter-cyclical Total global portfolio Traded credit Traded credit portfolio: £39.4bn £39.4bn Rating Geography Sector 4% Sovereign-like assets 11% Consumer 36% services & goods £110bn Utilities 28% Infrastructure 21% AAA 6% UK 33% Consumer 15% AA 12% USA 50% U
Slide 50: Sovereign portfolio
Sovereign portfolio Total global portfolio Sovereign portfolio: £30.6bn Rating Geography 4% Sovereign-like assets 11% Consumer 36% services & goods £110bn Utilities 28% Infrastructure Sovereign £30.6bn 21% AAA 1% UK 69% AA 94% USA 27% A 4% Europe 2% BBB 1% RoW 2% BB or below 0% 50
Slide 51: IG credit rarely defaults and spreads far exceed default rates
IG credit rarely defaults and spreads far exceed default rates 600 50 45 500 S&P Market Default Rates (bps) 40 IG Corporate Spreads (bps) 35 400 30 300 25 20 200 15 10 100 5 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Year IG corp
Slide 52: Defensive traded credit BBB exposure
Defensive traded credit BBB exposure Annuity Portfolio backing Global Annuities: Top 10 traded credit BBB exposure Ultimate Parent Sector Country of Risk Investment Value (£m) 1 Kelda Holdings Ltd Utilities UK 282 2 Oracle Corp Communications & Technology USA 231 3 United Utilities Group PLC Utiliti
Slide 53: Private Credit: our portfolio is high quality
Private Credit: our portfolio is high quality Total global portfolio Private credit portfolio: £22.9bn Rating Geography Sector 4% Sovereign-like assets 11% Consumer 36% services & goods £110bn Utilities 28% Infrastructure 21% AAA 2% UK 48% Infra 45% AA 7% USA 38% Utilities 12% A 45% Europe 8% Real E
Slide 54: Private Credit exposures are not inherently more risky
Private Credit exposures are not inherently more risky Investor Concerns on Credit L&G’s Private Credit Portfolio Systemic Risk Investment grade with carefully managed risk limits The vast majority of our exposure is to private placement type debt, predominantly in UK, Exposed to US direct lending a
Slide 55: Our Direct Investments are with high quality counterparties
Our Direct Investments are with high quality counterparties Annuity Portfolio backing Global Annuities: Top 15 Direct Investments by exposure Country of Rental Income Note Counterparty Sector Year of Investment Risk (£m) 1 UK Government Government UK 2011-2025 1,932 2 Student Accommodation Provider
Slide 56: Direct property exposure in annuity portfolio is limited
Direct property exposure in annuity portfolio is limited 31% Annuity property exposure of £11.8bn 50% RIN comprises: RVN Asset LTM • £2.3bn of RVNs. This is the present value estimate Property-related: £11.8bn of the future vacant possession value of the property 19% (i.e. the value at the end of th
Slide 57: Asset Management Asset Mix
L&G Asset Management Asset Mix
Slide 58: Underlying asset exposure by asset class
Underlying asset exposure by asset class Derivatives 12% Cash 1% 50% Total Equity US Equities Real Estate 29% 2% Private Credit 3% 32% Total Fixed Income 12% Total Derivatives £1.2trn Corporate Bonds 12% AUM 3% Total Private Credit UK Equities 4% 2% Total Real Estate Other Equities 17% Government Bo
Slide 59: Asset Management Balance Sheet Investments
Asset Management Balance Sheet Investments FY25 H1 26 Real Estate £622m £615m Private Credit1 £299m £342m Infrastructure £102m £88m Venture Capital £77m £87m Total £1,101m £1,132m 1 Includes 40% stake in Pemberton. 59
Slide 60: Underlying Assets Under Management by Solution
Underlying Assets Under Management by Solution Assets under Management (AUM)1 +4% £1,242bn £1,197bn £1,172bn Private Markets £1,135bn Active Solutions & Multi Asset Index 2023 2024 2025 H1 26 1 Includes joint ventures, associates and other. 60
Legal & General Group — H1 2026 Earnings Presentation on 6ix