Asset manager M&G tops City expectations as firm remains ‘on track’ for its 2025 targets
Insurer and asset manager M&G posted profit above analysts’ expectations in 2023 while recording net inflows despite the challenging market environment.
The firm’s assets under management and administration picked up slightly to £343.5bn in 2023, compared to £342.0bn the year before, thanks largely to “positive market movements.”
Adjusted operating profit swelled to £797m, up from £625m last year and ahead of analyst expectations.
M&G said this reflected a “resilient performance” in asset management and an “improved contribution” from Life, Wealth, and Corporate Centre.
In Wholesale Asset Management, the company saw net inflows of £1.5bn, up from £500m a year ago, despite the “adverse market conditions”.
The FTSE 100-listed firm said it had managed costs in line with 2022, delivering savings of £73m in the year, helping to offset inflationary pressures. As part of this, it cut UK office spending by 15 per cent.
The firm said it is well positioned in the current economic environment and remains “on track” to meet its targets for 2025.
These include making cost savings worth £200m and reducing its leverage ratio below 30 per cent.
It announced a total dividend per share of 19.7p, marginally higher than 19.6p last year.
“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,” Andrea Rossi, the firm’s chief executive said.
Rossi has been in the post for over a year now, a period in which has looked to slash costs and boost the flow of cash into its funds after years of outflows.
“As we look ahead, I am confident about the prospects for M&G as we remain focused on executing our strategic plan. Our diversified business model puts us in an excellent position to continue delivering attractive outcomes for both our clients and shareholders over the long-term,” he continued.