Fund manager and wealth manager M&G has reported adjusted operating profit up 15% to £435m in the first half of the year but says IFRS results showed a loss of after tax of £165 million (H1 2025: £248 million profit).
M&G said the IFRS figures, a key measure of profits, were hit by £551m of adverse short-term fluctuations in investment returns, of which £325 million (pre-tax) related to proposed changes to Ground Rent legislation.
On the positive side, there was a £2.4bn net inflow from open business helped by its asset management division and “excellent progress” in bulk purchase annuities which saw £1.7bn of gross flows.
PruFund is also to be launched on a third platform after its successful launch on the Scottish Widows adviser platform.
Overall, assets under management at M&G rose from £355bn a year earlier to £387bn in the first half.
Among the key financial highlights for the first half were:
- Adjusted operating profit was £435m (H1 2025: £378m) - 15% higher year-on-year, driven by 24% growth in the asset management contribution and 9% growth in Life.
- Net inflows from open business were £2.4bn despite a volatile external environment
- Asset Management accounted for the majority of inflows, with net inflows from external clients of £2.2bn, including positive results across wholesale and institutional clients
- During the half M&G launched its with profits Bulk Purchase Annuity proposition (BPA Plus) and launched its PruFund on the Scottish Widows adviser digital platform in June. It expects to launch on a second third-party platform later in the year
M&G said overall it was “well positioned” to deliver strong, long-term financial outcomes and is operating in growing markets with clear competitive strengths.
Andrea Rossi, group CEO, said: “I am very pleased with our progress over the first six months of the year. We delivered record adjusted operating profit, strong net inflows and continued growth in BPA (bulk purchase annuity) volumes, while achieving positive outcomes for our customers and clients.
“The business is performing strongly, with adjusted operating profit of £435m, up 15% year on year, our best first half result since listing in 2019. We continue to execute on our strategy, successfully driving the group towards high-quality and capital-light earnings, which now account for 80% of total adjusted operating profit.
“Net inflows from open business of £2.4 billion reflect the breadth and strength of our offering, with asset management delivering £2.2bn of net inflows from external clients, including £0.7 billion through our partnership with Daiichi Life Group.”