M&G (MNG) H1 2025 earnings summary

Executive summary

• Achieved £2.6bn net inflows in Asset Management, with 58% of external assets from international clients and cost-to-income ratio reduced to 75%.

• Strategic partnership with Dai-ichi Life, including a 15% stake and expected $6bn in new business over five years, supporting Asian market access.

• Integrated PruFund onto FNZ technology, enabling access to digital platforms and a £690bn market.

• Adjusted operating profit before tax rose to £378m, with profit after tax at £248m, reversing a £56m loss last year.

• Assets under management and administration increased 3% to £354.6bn, supported by positive market movements and improved net client flows.

Financial highlights

• Net flows from open business reached £2.1bn, a £3.2bn year-on-year improvement.

• Adjusted operating profit before tax: £378m; profit after tax: £248m.

• Operating capital generation: £408m, with £443m before new business strain.

• Asset Management fee-related earnings increased by 14% year-on-year; cost-to-income ratio improved to 75%.

• Solvency II coverage ratio improved to 230%, up 7 points from year-end.

Outlook and guidance

• On track to achieve £2.7bn cumulative operating capital generation by 2027.

• Committed to at least 5% average annual profit growth target.

• Targeting £230m in cost savings from transformation by 2025, with £213m already achieved.

• Anticipate stronger PruFund flows and annuity market activity in the second half.

• With-Profits BPA solution set for launch in Q1 2026.