M&G reports 2023 profit ahead of analyst forecasts
Reuters
Published Mar 21, 2024 07:23
Updated Mar 21, 2024 07:35
LONDON (Reuters) -British insurer and asset manager M&G (LON:MNG) reported profit ahead of analyst forecasts for 2023 on Thursday, as the company looks to cash in on a boom in demand for pension insurance.
M&G reported assets under management of 343.5 billion pounds ($440 billion), up on 342 billion the prior year, and adjusted operating profit of 797 million pounds, up 28% on the year before and ahead of analyst forecasts compiled by the company.
The FTSE 100 company also reported net inflows excluding heritage businesses of 1.1 billion pounds, which it said compared to 0.2 billion pounds of inflows the prior year.
M&G also announced a total dividend of 19.7 pence and said it was making progress towards retained 2025 financial targets, including making 200 million pounds of cost savings.
The company's chief executive Andrea Rossi said that the results showed positive momentum at a time when many active fund managers are contending with significant outflows of client cash amid choppy markets and high inflation.
Insurers have nonetheless been lifted by a surge in so-called bulk annuity deals - insuring company final salary pension schemes.
M&G re-entered the bulk annuity market last year after an eight year gap and said on Thursday it expects to generate 1 billion pounds to 1.5 billion pounds of sales in this market per year in future.
Consultants expect Britain's bulk annuity market to hit record levels at more than 50 billion pounds this year, with more entrants expected.
Like many of its rivals, M&G said it cut costs last year to try and offset inflationary pressures, trimming 73 million pounds from its overheads.
($1 = 0.7814 pounds)
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Written By: Reuters
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