M&G plc plunged into an IFRS loss after tax of £347m last year after making a profit of £309m the previous year, it reported in 2024 full year results today.

Despite the loss, the wealth and fund manager reported operating profit rose from £797m to £837m for the year to December.

Adjusted operating profit was up 5% and the company has increased its dividend per share from 19.7p to 20.1p as a result.

The firm, increasingly focused on wealth management, has also renamed its Life and Wealth division as Life.

The company said the IFRS loss after tax of £347 million (2023: £309 million profit) was due to losses relating to short-term fluctuations in investment returns and “mismatches” arising from the application of the IFRS 17 accounting standard.

Group CEO Andrea Rossi said: "Over the last 12 months, we have delivered strategic and operational momentum with meaningful progress across our three priorities: Financial Strength, Simplification, and Growth. This is reflected in our strong financial performance with adjusted operating profit before tax up 5% and resilient operating capital generation of £933 million.

"Since starting at M&G, my priority has been to strengthen the foundations of the business. Despite a tough market environment we have done this. In 2024 we have reduced debt, simplified our operating model, grown Asset Management adjusted operating profit by nearly 20%, and continued to drive positive momentum in Life, completing £0.9 billion of bulk purchase annuity deals and launching a new innovative solution.”

Mr Rossi said the group was now moving into a “new phase” with the aim of delivering sustainable and diversified growth across Asset Management and Life.

He announced today two new targets for 2025-2027: to grow adjusted operating profit before tax on average by 5% or more per annum, and to generate £2.7 billion of operating capital.

Over the past year the group has rationalised its operating structure, combining the Life and Wealth businesses under Clive Bolton. Mr Rossi said this would better focus efforts to improve efficiency and serve the UK retail market, complementing PruFund with life insurance solutions.

AUMA was £346 billion, £2 billion higher than at the start of the year, due to positive markets and the consolidation of the Continuum IFA business operations offsetting net outflows elsewhere in the group.

Mr Rossi said the outlook for 2025 “remains challenging” with increased geopolitical uncertainty and market volatility but he remained confident M&G can navigate an uncertain environment by leveraging the strength of its diverse business model.