M&G shares fell 1.6% to 337.6p on Tuesday as the insurer reported a £165 million IFRS after-tax loss for the first half of 2026, reversing a £248 million profit in the same period a year earlier.
The decline reflected £551 million in adverse short-term investment fluctuations, including a £325 million pre-tax charge tied to proposed changes in ground-rent legislation. Adjusted operating profit, however, rose 15% year-over-year to £435 million, the strongest first-half result since the company’s 2019 listing and above the £429 million analyst consensus.
Net inflows from open business totaled £2.4 billion, exceeding market expectations of £1.9 billion. Segment performance showed asset management profit up 24% to £159 million, while life profit increased 9% to £375 million. Operating capital generation declined to £372 million from £408 million a year earlier, reflecting lower short-term interest rates.
CEO Andrea Rossi emphasized a strategic shift toward high-quality, capital-light earnings, which now account for 80% of total adjusted operating profit.
M&G’s decline mirrored broader market pressures, with the FTSE 100 down 0.3% at 10,756.45. Elevated gilt yields, climbing oil prices above $95 per barrel amid renewed US-Iran tensions, and persistent inflation concerns weighed on investor sentiment.
