9th Mar 2021 08:20
(Alliance News) - Savings and investments business M&G PLC on Tuesday said it is on track for its medium-term targets as its performance improved in 2020.
M&G, which was demerged from Prudential PLC in 2019, reported assets under management & administration up 4% to GBP367.2 billion, principally reflecting the acquisition of Ascentric in September 2020.
The company said its pretax profit from continuing operations fell to GBP1.61 billion from GBP1.75 billion a year earlier, as total revenue, net of reinsurance from continuing operations, dropped to GBP15.22 billion from GBP32.13 billion in 2019.
M&G noted that total charges, net of reinsurance from continuing operations, were lower in 2020, at GBP13.56 billion versus GBP30.40 billion a year ago.
The company reported net outflows of GBP6.6 billion in Savings & Asset Management. In addition, M&G said Institutional Asset Management inflows of GBP5.1 billion were offset by outflows in Retail Asset Management due to weak investment performance.
The company said its shareholder Solvency II coverage ratio strengthened to 182%, its highest level since independence.
M&G declared a dividend of 12.23 pence per share. Since the demerger, the company paid a dividend of 11.92p per share in May 2020 and a special demerger dividend of 3.85p per share. In addition, it paid an interim dividend of 6.00p per share in September 2020.
Going forward, the company said it is on track to achieve annual run-rate shareholder cost savings of GBP145 million through business transformation and modernisation in 2022.
"In our first year as an independent company, we have delivered a strong and resilient performance in one of the most challenging operating environments ever. This demonstrates the value of our diversified and integrated business model, both to customers and clients, and to shareholders," said Chief Executive John Foley.
"We remain committed to our ambitious three-year GBP2.2 billion target for total capital generation to the end of 2022 and to our current policy of a stable or increasing dividend," added Foley.
M&G shares were trading 5.6% higher in London on Tuesday at 216.53p each.
By Evelina Grecenko; [email protected]
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