Legal & General (L&G) reported a seven per cent rise in profit in the first half of 2026 as its asset management division continued to expand into private markets, including private credit.

In its half-year results, the FTSE 100-listed insurer reported operating profit of £918m, up from £859m in the first half of 2025. Operating profit in its asset management division rose 10 per cent to £222m, which the firm attributed to favourable market conditions and its continued push into alternatives.

L&G said its private markets assets under management (AUM) increased to £79bn from £65bn in the first half of 2025, “with continued fundraising success across private credit, infrastructure funds and real estate”, the results said.

“The highlight of the first half was the performance in asset management, with fee-related earnings increasing 37 per cent, supported by record annualised net new revenue and a reduced cost-income ratio of 71 per cent,” said António Simões, chief executive of L&G.

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The asset manager recently launched its Digital Infrastructure Fund and grew its Private Markets Access Fund to more than £3bn in AUM.

Overall, L&G is targeting private markets AUM of £85bn by 2028. Its asset management division managed total AUM of £1.2tn in the first half of 2026, up from £1.14tn in June 2025.

“The continued expansion of private markets demonstrates the growing depth and diversification of the platform,” the results said. “Growth across private credit, real estate and infrastructure funds, supported by Proprium and Pemberton, strengthens L&G’s institutional and wealth proposition and supports the longer-term shift towards higher margin, capital-light growth.”

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L&G also reported net asset management outflows of £25bn during the first half, with withdrawals concentrated in lower-margin institutional mandates, largely in Asia. The outflows were partly offset by inflows from Europe, UK defined contribution pensions and captive flows into private credit, the results said.

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