Shares in M&G declined 1.6% to 337.6p on Thursday, extending losses after the insurer reported a first-half net loss of £165 million under IFRS accounting standards.
The company’s adjusted operating profit rose 15% year-over-year to £435 million, exceeding analyst forecasts of £429 million and marking the strongest first-half result since its 2019 listing. Asset management profit climbed 24% to £159 million, while the life division advanced 9% to £375 million. Net inflows into open-ended funds totaled £2.4 billion, surpassing market expectations of £1.9 billion.
M&G’s financial performance was tempered by £551 million in adverse short-term fluctuations in investment returns, including a £325 million pre-tax expense tied to proposed ground rent legislation. Operational capital generation fell to £372 million from £408 million a year earlier, while the corporate centre posted a modestly wider loss amid lower short-term interest rates.
Chief Executive Andrea Rossi emphasized a strategic pivot toward higher-margin, lower-capital-intensive revenue streams, which now represent 80% of adjusted operating profit. The company’s shares remain well above their 52-week low of 248.6p but remain 8% below their 52-week high of 367p.
Broader market conditions added pressure, with the FTSE 100 down 0.3% at 10,756.45 points. Elevated gilt yields, oil prices above $95 per barrel amid renewed U.S.-Iran tensions, and persistent inflation concerns contributed to the subdued trading environment.
