Legal & General Group PLC (LSE:LGEN) continues to be backed by analysts at UBS, who told clients that they expect to see shareholder returns prioritised.
UBS anticipates L&G will return over 35% of its market value to shareholders through dividends and buybacks over the next three years, which the Swiss bank highlights will make it the highest capital return programme in the UK life insurance sector.
Cumulative capital returns between FY26 and FY28 are predicted by UBS to reach £5.1 billion.
At the same time, the Swiss bank highlighted margin improvement opportunities in L&G’s workplace pensions division, supported by regulatory tailwinds and internal investment. But the broker acknowledged elevated exposure to corporate credit risk.
UBS repeated its ‘buy’ rating on the shares but snipped its price target to 265p from 270p.