In its full-year results, the group put this down to the “subdued market”.
Its UK retail protection gross premiums were flat at £1.5bn, while new business annual premiums rose from £153m to £159m. L&G said it continued to transform its technology and capability in a “highly competitive market”, while maintaining a “strong” market share of 18.5%.
L&G’s retail division, including retail protection and lifetime mortgages, delivered an operating profit of £446m, up from £430m the year before. Its profit before tax surged 54% to £374m.
Within this, the UK insurance business, consisting of retail protection, group protection and mortgage services, had an operating profit of £119m, up from £114m in 2024, while the retail retirement business – comprising individual annuities, lifetime mortgages, workplace defined contribution administration and returns from shareholder assets – had an operating profit of £328m, up from £316m previously.
The group reported a core operating profit of £1.6bn for the year, a 6% improvement on the year before.
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António Simões, CEO of L&G, 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. This week, we will begin a £1.2bn share buyback – the largest in our history – which, together with guided dividend per share growth of 2% this year, will bring planned returns to shareholders to £2.4bn over the next year.
“As a sharper, more focused business, we are well-positioned to capitalise on the structural, growing demand for long-term investments and retirement income.”
Simões added: “We are on track to achieve the financial targets set out in our strategy; our priority now is to accelerate this momentum, maintaining discipline and delivering enhanced shareholder returns.”
