Legal & General Group has announced a substantial share buyback program valued at 500 million pounds for 2025, indicating the company's strong momentum in executing its growth strategy. The report showcases significant progress achieved during 2024, a year marked by robust financial results. For the fiscal year ending December 31, 2024, the British financial services firm's core operating profit saw an increase, reaching 1.62 billion pounds, up from the previously recorded 1.53 billion pounds the year before.
This reflects a steady growth trajectory, with total operating profit also climbing by 3%, amounting to 1.71 billion pounds. However, the profit after tax that is attributable to equity holders experienced a decline, falling to 191 million pounds from 457 million pounds. This decrease is primarily attributed to a higher effective tax rate and the introduction of new top-tax rules in the UK in 2024.
The company's Solvency II coverage ratio improved as well, standing at 232%, an increase from 224% noted in the previous year. Antonio Simoes, the Chief Executive Officer, commented on the achievements during the earnings release stating, "2024 has been a year of significant strategic progress and strong financial performance.
We delivered 6% growth in our core operating profit and core EPS, alongside excellent new business volumes, while investing for the future." He emphasized that the company is experiencing positive commercial momentum as they diligently execute their strategic plans. To ensure the long-term viability of its operations, Legal & General introduced a revised strategy and updated financial targets in 2024.
This new business model emphasizes three main areas: Institutional Retirement, Asset Management, and UK Retail, focusing on streamlined operations to foster sustainable growth. Additionally, the board declared a final dividend of 0.1536 pounds per share, which elevates the full-year dividend for 2024 to 0.2136 pounds per share, an increase from 0.2034 pounds recorded in 2023.
Simoes reinforced the commitment to returning value to shareholders by communicating, "We stated at our Capital Markets Event that we intended to return more to shareholders and that is exactly what we are doing. Our clear capital allocation framework supports our plan to return over £5 billion over the next three years through dividends and buybacks." Looking ahead, Legal & General is optimistic about maintaining the commercial momentum across its three segments in 2025, with strategic plans to liquidate the remaining assets within its Corporate Investments portfolio. As of late Wednesday morning, the group’s shares were noted to be trading nearly 2% lower in London..