Insurer and asset manager M&G exceeded analysts’ profit expectations in 2023, achieving net inflows despite the challenging market backdrop.
The company’s assets under management and administration experienced a modest uptick to £343.5bn in 2023, compared to £342.0bn the previous year, primarily driven by “positive market movements.”
Adjusted operating profit surged to £797m, surpassing last year’s £625m and beating analyst forecasts.
M&G attributed this performance to its resilient asset management operations and an enhanced contribution from Life, Wealth, and Corporate Centre.
Despite adverse market conditions, Wholesale Asset Management witnessed net inflows of £1.5bn, a significant increase from £500m the previous year.
The FTSE 100-listed firm emphasized its effective cost management, maintaining expenses in line with 2022 and achieving savings of £73m during the year, thereby mitigating inflationary pressures. Notably, it reduced UK office expenditure by 15 per cent.
M&G affirmed its strong positioning in the current economic climate and reiterated its commitment to achieving its 2025 targets, including £200m in cost savings and lowering its leverage ratio below 30 percent.
Andrea Rossi highlighted positive business momentum and significant improvements in key financial metrics. Rossi, who has been in his role for over a year, emphasized cost reduction and cash flow improvement initiatives aimed at reversing years of outflows.
Looking ahead, Rossi expressed confidence in M&G’s prospects, emphasizing the company’s diversified business model and its ability to deliver attractive outcomes for clients and shareholders in the long term.
