M&G (MNG) H1 2026 earnings summary

Executive summary

• Adjusted operating profit before tax rose 15% year-over-year to GBP 435 million, the highest H1 result since 2019, with 80% from capital-light sources and strong Asset Management and Life segment performance.

• Net inflows from open business reached GBP 2.4 billion, with Asset Management contributing GBP 2.2 billion, including GBP 0.7 billion from the Daiichi partnership.

• Assets under management and administration (AUMA) increased by GBP 11.5 billion to GBP 387.4 billion as of 30 June 2026.

• Strategic partnership with Daiichi Life, now the largest shareholder at 15.7%, enhanced international growth, product development, and board representation.

• Continued business transformation and cost discipline, with GBP 250 million in savings since 2023 and AI-driven efficiencies.

Financial highlights

• Adjusted operating profit before tax: GBP 435 million (H1 2025: GBP 378 million), up 15% year-over-year.

• Asset Management AOP: GBP 159 million (+24% YoY); Life AOP: GBP 375 million (+9% YoY).

• Operating capital generation: GBP 372 million (H1 2025: GBP 408 million); total capital generation: GBP 375 million (H1 2025: GBP 354 million).

• Shareholder Solvency II coverage ratio: 247% (YE 2025: 242%); leverage ratio: 29%.

• IFRS loss after tax: GBP 165 million, mainly due to a GBP 325 million pre-tax loss from UK ground rent legislation.

Outlook and guidance

• Targeting average annual AOP growth of at least 5% over 2025–2027; expecting low double-digit AOP growth for FY 2026.

• On track to achieve GBP 2.7 billion cumulative operating capital generation (excluding new business strain) over 2025–2027.

• Cost-to-income ratio improved to 73% in H1 2026, with a target of 70% by end-2027.

• Positive business momentum expected to continue in H2 2026, with further BPA growth and strong Asset Management inflows.

• Targeting GBP 3 billion–GBP 4 billion in BPA volumes by 2027, with plans to scale sales by at least 50% this year.