London, Feb 3, 2026, 09:41 GMT — Regular session
- Shares rose roughly 1% in early trading following confirmation that the Meiji Yasuda deal has closed
- The group signaled another £1 billion in returns to shareholders, boosting the planned buybacks for 2026 to £1.2 billion
- Investors are turning to the March full-year results to get clarity on pro-forma figures and the timing of share buybacks
Legal & General shares climbed around 1% to 270.2 pence early Tuesday, extending gains from the prior session after the company wrapped up a U.S. asset sale and unveiled a larger buyback scheme. So far, the stock has fluctuated between about 268.2 pence and 271.3 pence in the session. (Investing)
This move is significant since capital returns are currently driving the equity narratives for UK life insurers. A bigger, more transparent buyback programme could stabilize sentiment amid volatile growth and fluctuating spreads.
The company announced Monday it has finalized the sale of its U.S. insurance business to Meiji Yasuda Life Insurance Company for $2.3 billion in cash. The transaction is expected to free up £1.2 billion of Solvency II capital and deliver an IFRS profit exceeding £1.3 billion. From the proceeds, it plans to return an extra £1 billion to shareholders, increasing its total 2026 share buyback to £1.2 billion. Meiji Yasuda will also acquire a 5% economic stake in the group. (Legalandgeneral)
“It strengthens our balance sheet, frees up capital, and lets us speed up growth in US Pension Risk Transfer,” António Simões said in the statement.
Pension risk transfer, known as PRT, involves an insurer assuming pension liabilities from a corporate plan in return for a premium, usually through bulk annuities. The process demands significant capital, reacts sharply to interest rates and credit spreads, and often benefits from scale.
The broader FTSE 100 barely budged, keeping this stock move largely confined to one name instead of sparking a sector-wide shift. (Hargreaves Lansdown)
Traders are set to monitor the pace of the buyback’s execution closely, along with any updates from the group on its Solvency II coverage ratio — a crucial measure of capital strength under the insurance capital rules — once the transaction appears in the financial statements.
Buybacks risk slowing if markets shift or capital buffers tighten. A sudden jump in bond yields or credit spreads can swiftly alter solvency metrics, while pricing in PRT could get squeezed if volumes falter amid rising competition.
Sir John Kingman purchased 620 shares on Feb. 2, as revealed in a separate RNS filing. (Investegate)
Next on the calendar is the group’s preliminary full-year results due March 11. Investors are looking for pro-forma disclosures related to the deal, along with further details on the 2026 buyback programme. (Legalandgeneral)
