Shares of Legal & General Group declined 0.5% to 264.4 pence during Wednesday's early London session, mirroring a broader retreat across the insurance sector. The movement follows renewed investor apprehension that artificial intelligence tools could significantly reshape insurance distribution and pricing models.
Sector-Wide Jitters
The sell-off appears linked to a recent downturn in U.S. insurance broker stocks, sparked by the launch of new AI-powered comparison platforms. Analysts suggest these tools could pressure broker fees and alter customer behavior, creating uncertainty for traditional market participants. "We're seeing knee-jerk reactions from investors as they panic before obtaining all the facts," commented Dan Coatsworth, head of markets at AJ Bell.
Focus on Upcoming Results
For Legal & General, investor attention now shifts to the company's full-year financial report scheduled for March 11. The market will scrutinize key metrics including cash generation, capital returns, and the pipeline for pension risk transfer (PRT) deals. The insurer recently strengthened its balance sheet by completing the £1.2 billion sale of its U.S. insurance unit to Japan's Meiji Yasuda.
CEO António Simões stated the transaction releases capital and enables accelerated growth in U.S. PRT, with plans to return an additional £1 billion to shareholders. This brings the total planned 2026 share buyback to £1.2 billion, reinforcing the stock's appeal to income-focused investors.
Broader Implications and Outlook
While Legal & General's business mix—spanning retirement solutions, workplace pensions, and asset management—differs from pure-play brokers, its shares often move with the sector during risk-themed sell-offs. The near-term trajectory may depend on whether AI concerns remain confined to distribution platforms or begin affecting expectations for insurers' own cost structures.
If the anxiety persists, it could trigger a broader sector re-rating. However, if investors conclude that regulatory and behavioral changes will take years to materialize, the current pressure may ease. For now, March 11 serves as the next significant catalyst for Legal & General, with detailed results expected to provide clarity on solvency, cash flow, and capital allocation plans.
