Yahoo Finance

• Capital Generation: Over GBP900 million generated, exceeding the upgraded OCG target.

• Cost Savings: GBP188 million delivered in the first two years of the transformation program, with a new target of GBP230 million by the end of 2025.

• Group Operating Profit: Up 5% year-on-year, driven by a nearly 20% improvement in Asset Management.

• New Business Volumes in Life: Increased by 50%, reaching nearly GBP900 million in premiums.

• Net Client Outflows: GBP1.9 billion, mainly from UK Institutional Asset Management and PruFund.

• Closing AUMA: GBP346 billion, GBP2 billion higher than the opening balance.

• Asset Management Operating Profit: Increased by GBP47 million to GBP289 million.

• Solvency Ratio: Increased to 223%, with a solvency surplus of GBP4.7 billion.

• Dividend Policy: Shift to a progressive dividend policy with a 2% DPS increase for 2024.

• Adjusted Operating Profit: GBP837 million, up 5% year-on-year.

• Average AUM: GBP314 billion, up nearly 3% in 2024.

• Cost-to-Income Ratio: Improved by 3 percentage points to 76% (74% including performance fees).

• CSM (Contractual Service Margin): Increased by 10% year-on-year to GBP6 billion.

• Warning! GuruFocus has detected 6 Warning Sign with MGPUF.

Release Date: March 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• M&G PLC (MGPUF) generated over GBP900 million of capital, exceeding their upgraded OCG target, which allowed for debt reduction and increased dividend cash spend.

• The company announced a move to a progressive dividend policy, reflecting confidence in future business prospects.

• M&G PLC (MGPUF) achieved GBP188 million in savings from transformation efforts, leading to an upgraded cost target of GBP230 million by the end of 2025.

• Group operating profits increased by 5% year-on-year, driven by a nearly 20% improvement in Asset Management results.

• The Life segment saw a 50% increase in new business volumes, reaching nearly GBP900 million in premiums, offsetting the run-off of the in-force book.

Negative Points

• Net client outflows of GBP1.9 billion were reported, primarily due to UK Institutional Asset Management and PruFund.

• Asset Management net outflows of GBP900 million were driven by the Institutional segment, with headwinds from UK DB schemes.

• PruFund flows remained under pressure as customers favored alternative risk-free solutions due to elevated interest rates.

• The cost-to-income ratio target of 70% was not achieved, with the current ratio standing at 76% without performance fees.

• The company faces challenges in the UK market, with structural challenges in Defined Benefit pension schemes and high rates impacting derisking journeys.