Proactive Investors - Legal & General Group PLC (LON:LGEN) results offer the possibility of a new share buyback announcement, according to UBS.
The FTSE 100 life insurer is due to report interim numbers on Tuesday 15 August.
Investors and analysts are expected to focus on solvency metrics, analysts at the Swiss bank said, with L&G having already reported a first-half solvency ratio at circa 225%, down from 236% at the year-end.
The lower solvency ratio was partially driven by increased interest rate hedging, UBS noted, adding that the hedging "should reduce L&G's negative solvency ratio sensitivity to falling interest rates, where L&G had one of the highest subsector sensitivities.
"We also expect the hedging to increase the probability of a share buyback announcement at 1H."
A £400 million one-off share buyback would be "affordable" and would not derail L&G's UK bulk-purchase annuity growth opportunity.
"Although affordable, the probability of a buyback announcement at 1H remains low, given the new CEO is expected to join in 2024 and the reinvestment opportunities at L&G generate better returns than buying back L&G shares at a circa 10% dividend yield."
Consensus expects a first-half operating profit of around £818 million.