M&G plc reported a record half-year 2026 adjusted operating profit of £435 million, a 15% increase from the same period a year earlier, driven by a 24% rise in asset management earnings and double-digit growth in life insurance segments.
The London-based insurer and asset manager said capital-light earnings now represent 80% of total operating profit, up from 73% in the prior year. Adjusted operating profit in asset management reached £159 million, while life segment earnings grew 9% to £375 million. PruFund adjusted operating profit increased 15% to £129 million, and traditional with-profits earnings rose 14% to £137 million.
Total assets under management and administration (AUMA) rose 3% to £387 billion, with external client assets up 29% to £189 billion, now accounting for 53% of total AUMA. International external AUMA surged 43% to £110 billion. Net inflows totaled £2.4 billion, including £2.2 billion in asset management and £0.2 billion in life insurance, a £0.7 billion improvement year-over-year.
The group’s Solvency II coverage ratio stood at 247%, supported by own funds of £8.4 billion against a solvency capital requirement of £3.4 billion. The contractual service margin (CSM) reached £7 billion, up 6% from year-end 2025. Operating capital generation for H1 2026 was £372 million, tracking toward a £2.7 billion three-year target through 2027.
Bulk purchase annuity (BPA) volumes reached £1.7 billion by the end of August 2026, exceeding the full-year 2025 total of £1.5 billion. Management projects 2027 volumes of £3 billion to £4 billion, implying a compound annual growth rate exceeding 50%. More than 80% of life volumes are managed internally, with approximately 40% allocated to private markets for BPA new business.
Chief Executive Andrea Rossi highlighted the company’s expanding market share in BPA, now estimated at 6-8%, supported by the With-Profits Fund and strong capital position. Chief Financial Officer Kathryn McLeland noted the £7 billion CSM as a growing store of future value for shareholders.
M&G maintained guidance for low double-digit profit growth in full-year 2026 and at least 50% BPA+ sales growth, while flagging a modest £10 million annual operating profit headwind from ground rent reform starting in late 2028.
