Legal & General, one of Britain’s leading life insurers, reported stronger-than-expected half-year results, driven largely by growth in its pension risk transfer business. The company said its core operating profit for the six months ended June 30 increased by 7 percent to £918 million, surpassing City forecasts and reflecting progress following a two-year restructuring under CEO António Simões.

A key contributor to the performance was Legal & General’s institutional retirement division, which has established itself as a major player in the pension risk transfer market by acquiring defined benefit pension schemes from corporate sponsors. By the end of July, the division had secured or written pension risk transfer deals valued at £5.7 billion.

Within this division, core operating profit rose 5 percent to £646 million, underscoring the steady demand for outsourcing pension obligations from companies looking to reduce their long-term liabilities. The asset management unit of the business also reported a 10 percent increase in core operating profit, reaching £222 million.

The growth in pension risk transfer deals reflects a broader industry trend where insurers take on the financial and longevity risks associated with defined benefit pension plans, allowing corporate sponsors to de-risk their balance sheets. Legal & General’s dominant position in this market has bolstered its financial results amid an otherwise challenging environment for traditional life insurers.

Under Simões’ leadership, the company has been focused on reshaping its business to prioritize stable and recurring profit streams, with these pension deals playing a central role. The half-year results indicate that the group is advancing towards sustainable growth following its strategic overhaul.

Legal & General did not provide detailed guidance for the remainder of the year but highlighted the ongoing strength of its institutional retirement pipeline. The insurer’s ability to capitalize on pension risk transfer opportunities is expected to remain a key driver of profitability going forward.