M&G (MNG) H1 2024 earnings summary

Executive summary

• Delivered resilient half-year results in 2024, with adjusted operating profit before tax of £375m, nearly matching last year's record, amid challenging markets and cost discipline.

• Strategic priorities remain financial strength, simplification, and growth, with significant progress on deleveraging, cost reduction, and international expansion.

• Upgraded operating capital generation target to £2.7bn by end-2024 and cost savings target to £220m by 2025, reflecting confidence in continued strong performance.

• Transformation and simplification initiatives delivered over £121m in cost savings since early 2023, with managed costs down 4% year-over-year.

• Interim dividend per share increased to 6.6p, payable in October 2024.

Financial highlights

• Operating profit for H1 2024 was £375m, down 4% year-on-year, with Asset Management contribution up 9% and Life and Wealth down 7%.

• Operating capital generation reached £486m, supported by management actions and strong asset management and wealth contributions.

• Solvency II coverage ratio improved to 210% (up 7 ppts from YE 2023), with surplus at £4.6bn after dividends and deleveraging.

• Net client outflows of £1.5bn, mainly from Wealth, while Asset Management delivered neutral flows and international net inflows of nearly £2bn.

• Assets under management and administration (AUMA) increased to £346bn, driven by positive market movements and the Continuum acquisition.

Outlook and guidance

• Upgraded cumulative operating capital generation target for 2022-2024 to £2.7bn and cost savings target to £220m by 2025.

• On track to complete first capital-light BPA transaction by year-end and to launch a PruFund-like proposition in the Middle East.

• Expecting improved flows in Wholesale Asset Management in H2 2024 as market headwinds abate, with over £700m net inflows already delivered in July and August.

• Dividend policy of stable or growing dividends remains unchanged.

• Confident in long-term outlook due to strong capital position, diversified business model, and ongoing transformation.