M&G ended 2023 with a 28% year-on-year increase in pre-tax operating profit, from £625m to £797m. Assets under management also increased from £342bn to £343.5bn, while net client flows reached £1.1bn.
Wholesale asset management has performed strongly, delivering net inflows of £1.5bn, compared to net flows of £200m the previous year.
In terms of performance, 64% of M&G’s mutual funds achieved first and second-quartile returns over three years to the end of December 2023, compared to 67% over three years to the end of 2022.
Andrea Rossi, group chief executive officer, said: “M&G has performed very well in 2023. Today’s results show positive business momentum and meaningful improvements across key financial metrics. Net client flows, adjusted operating profit, operating capital generation, and the shareholder Solvency II ratio are all up materially year-on-year.
“This financial performance underscores the importance of our balanced and diversified business model, with strong growth achieved despite continued macroeconomic uncertainty. The contribution to earnings from our Life and Wealth operations increased meaningfully year-on-year, while Asset Management showed great resilience delivering net client inflows of £0.8bn at a time when the market for active investment solutions suffered significant redemptions.”
M&G did note £6.2bn in net client outflows from UK Institutional Asset Management, which it said was due to the 2022 mini-budget and the “ongoing de-risking of Defined Benefit pension funds”.
The results noted “good progress” on 2025 financial targets, which include bringing core asset management cost to income ratio below 70% and generating £200m of cost savings gross of inflation since 2022.
“I am also very pleased with our operational progress in the first full year since outlining our three strategic priorities: financial strength, simplification and growth,” Rossi said.
“We took steps forward on our business targets, and in particular, we are well placed to achieve our three-year cumulative operating capital generation of £2.5bn by the end of the year.”
