9th Mar 2023 09:58
(Alliance News) - M&G PLC on Thursday reported a fall in assets under management and a weaker profit outcome in a tough year mired by market uncertainty.
The company said assets under management and administration at the end of 2022 amounted to GBP342.0 billion, down 7.6% on-year from GBP370.0 billion. The decline was "driven by negative market movements from the volatility experienced in markets throughout a challenging year".
More positively, its Wholesale Asset Management arm return to client inflows for the first time since 2018. Inflows there amounted to GBP500 million, compared to GBP3.8 billion net outflows in 2021.
M&G swung to a GBP2.50 billion pretax loss in 2022, from profit of GBP788 million in 2021. Profit was hurt by an investment hit of GBP15.66 billion, compared to a return of GBP12.91 billion in 2021. Its pretax loss attributable to equity holders amounted to GBP2.12 billion, swinging from profit of GBP81 million.
Gross premiums earned rose 36% to GBP6.51 billion from GBP4.78 billion.
Profit was also hurt by a GBP172 million non-cash hit from mismatching losses in the annuity portfolio and foreign exchange losses on its dollar denominated subordinated debt.
M&G declared a second interim dividend of 13.4 pence per share, up 9.8% from 12.2p a year earlier.
Its total dividend for 2022 was 7.1% higher at 19.6p from 18.3p.
Looking ahead, it expects to generate GBP200 million worth of cost savings by the end of 2025. It also intends for its Asset Management & Wealth division to account for more than half its adjusted operating profit by that year.
It is on track to achieve GBP2.5 billion worth of capital generation by 2024.
Ahead of its results, there was a report that M&G may be the object of a takeover by Macquarie Group Ltd. Sky News last week Wednesday reported Macquarie is weighing up a bid.
Reuters this week Tuesday reported Macquarie chief executive dismissed news of the possible bid as "speculation".
M&G Chief Executive Andrea Rossi said: "We now have a clear strategy to build on the inherent strengths of our differentiated business model. We will maintain our financial strength, simplify our business and deliver profitable growth. We are at the start of the next phase for M&G and I am encouraged by the progress we are already making.
"Looking ahead, despite the uncertainty of the external environment, our diversified business model and strong financial position will underpin our ability to invest in the growth of our business and continue to deliver attractive shareholder returns."
M&G shares were 1.6% higher at 219.95 pence each in London on Thursday morning. It has a market capitalisation of around GBP5.21 billion.
By Eric Cunha, Alliance News news editor
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.