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M&G Plc - Final Results

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M&G plc full year 2019 results

M&G plc delivers a positive financial performance in a challenging market

Performance highlights

  • Assets under management and administration increased to £352 billion, principally reflecting strong investment returns over the year
  • Modest net client outflows in Savings and Asset Management of £1.3 billion, with net client inflows into UK Retail Savings, which includes PruFund, mostly offsetting net client outflows in Retail Asset Management
  • Adjusted operating profit before tax1 of £1,149 million in line with our expectations and IFRS profit after tax from continuing operations of £1,065 million
  • Total capital generation of £1,509 million and shareholder Solvency II coverage ratio of 176%2
  • On track to deliver annual run-rate shareholder cost savings of £145 million by 2022 through our five-year transformation programme
  • Ordinary dividend of 11.92 pence per share and special demerger dividend of 3.85 pence per share

John Foley, Chief Executive, said:

"We have achieved much in 2019. As well as executing a successful demerger, we have maintained a clear focus on the day-to-day management of our business as indicated by a positive set of financial results in a challenging market. Adjusted operating profit before tax of £1,149 million and total capital generation of £1,509 million for the year represent a resilient performance in line with our expectations.

"Total assets under management and administration increased to £352 billion, largely reflecting investment returns over the year.  Across Savings and Asset Management, we saw modest total net client outflows of £1.3 billion. Flows into our UK Retail Savings business, including PruFund, largely offset flows out of our Retail Asset Management business. This demonstrates the value of our diversified business model and the appeal of our smoothed investment propositions.

"We have made a good start to life as an independent business and we are strongly positioned for growth. Our diversified investment capabilities, coupled with our client relationships in 28 markets, mean we are well positioned to meet the growing global demand for savings and investment solutions, supported by favourable long-term economic and social trends that offer growth opportunities for many years to come."

Global markets continue to be unnerved by a series of factors, including most recently the spread of COVID-19 and its potential economic impact. While there remains significant uncertainty, our balance sheet continues to be resilient. As at 6 March 2020, our shareholder Solvency II coverage ratio was estimated at 166%23, which is firmly within our risk appetite.

Performance highlights

2019

2018

Adjusted operating profit before tax (£m)

1,149

 

1,621

 

IFRS profit after tax (£m)

1,065

 

811

 

Assets under management and administration (£bn)

352

 

321

 

Savings and Asset Management net client flows (£bn)

(1.3

)

(1.7

)

Total capital generation (£m)

1,509

 

2,369

 

Shareholder Solvency II coverage ratio

176%

170%