M&G Plc (LSE:MNG) saw its shares drop over 2% after reporting first-half profits below market expectations, even as assets under management (AuM) and capital levels exceeded forecasts. Total adjusted operating profit came in at £378 million, 5.1% below consensus of £398.4 million. Asset management profit was £128 million, 9.9% under estimates, while life profit reached £344 million, 2.2% short of forecasts. Corporate center costs were slightly better than expected at negative £94 million.
Assets under management and administration totaled £354.6 billion, 0.8% above consensus, with asset management AuMA at £168.8 billion, exceeding forecasts by 3%. Life AuMA, however, fell slightly short at £184.8 billion. Total net outflows were negative £2.5 billion, outperforming expectations of negative £3.1 billion, driven by strong asset management inflows of £2.6 billion, nearly four times the forecasted £0.7 billion, while life net outflows were deeper than expected at negative £5.1 billion.
The company’s Solvency II ratio increased to 230%, five percentage points above consensus, and total operating capital generation was £408 million, 4.3% above forecasts. M&G maintained an ordinary dividend of 6.7p per share. Analysts noted that, despite the profit shortfall, asset growth and net flows indicate the company is progressing toward its strategic objectives, with positive momentum in wholesale, institutional, and PruFund net flows.
About M&G Plc
M&G Plc is a UK-based asset manager and life insurer, providing investment solutions, savings, and retirement products. The firm operates across asset management, life insurance, and annuity services, focusing on long-term capital growth and financial stability for its clients.
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