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.
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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.
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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.
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