Is LGEN.L (Legal & General Group Plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, LGEN.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 4 of 4 compliance screens. Legal & General Group Plc's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 50.40% exceeds the ≤33% threshold. Its interest income of 100.00% exceeds the ≤5% limit. Its cash & securities ratio of 121.63% exceeds the ≤33% threshold.

Legal & General Group Plc is a major multinational financial services company based in London, primarily known for its insurance, pensions, and asset management divisions. The company operates through distinct segments like Legal & General Retirement (LGR), which sells annuity contracts and lifetime mortgages, and Legal & General Investment Management ( LGIM), one of the largest asset managers in Europe. They are deeply embedded in the traditional financial system, offering products ranging from longevity insurance to workplace savings schemes. For Muslim investors, this stock is classified as Not Halal (Haram) because it fails every single AAOIFI screening criteria. The core business involves the sale of conventional insurance and interest-bearing loans , both of which are fundamentally incompatible with Shariah principles due to the presence of riba (interest) and gharar (excessive uncertainty). Consequently, this is not a borderline case; the nature of their operations makes the stock impermissible for a Shariah-compliant portfolio. Financially, the company's structure further solidifies its non-compliant status. L GEN.L carries a debt-to-market cap ratio of 50.4%, well above the 3 3% limit, and holds cash and interest-bearing securities amounting to 121.6% of its market cap . Most critically, the screening data indicates that effectively 100% of its reported revenue is tied to interest-based activities, leaving no room for purification. Legal & General Group Plc operates in the Financial Services sector under the Asset Management industry and is headquartered in London, GB. The company is led by CEO Antonio Pedro Dos Santos Simoes and employs approximately 10,799 people.

LGEN.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. LGEN.L passed 0 of these 4 screens.

LGEN.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.