M&G flows turn positive, FY profits flat

(Sharecast News) - Investment manager M&G reported flat full-year profits on Thursday, ahead of expectations, as its net flows turned positive. M&G said the broadly flat profits reflected growth in Life and higher fee-based earnings in Asset Management, offset by lower performance fees in Asset Management and lower investment income in both Asset Management and Corporate Centre.

The company posted new inflows of £7.8bn, compared to outflows of £1.9bn in the previous year, while assets under management and administration rose to £375.9bn from £345.9bn.

The Solvency II ratio, or capital cushion, improved to 242% from 223%.

Chief executive Andrea Rossi said 2025 had been a year of strong commercial momentum and strategic progress for M&G.

"We continued to invest in our business, setting it up for long-term growth and expanding our international distribution and investment capabilities. In May, we also entered into a long-term strategic partnership with Dai-ichi Life HD, now our largest shareholder," he said.

"We delivered £7.8 billion of net inflows from open business, an improvement of nearly £10 billion year-on-year, driven by a strong performance in Asset Management and a return to growth in Life. In Asset Management, we generated £7.0 billion of net inflows from external clients, corresponding to 4.4% of opening AUMA, reflecting the strength of our investment performance and proposition. In Life, we materially increased bulk purchase annuity (BPA) volumes, and brought PruFund back into sustained net inflows in the second half.

"We expect this momentum across the business to continue in 2026, as we move forward on our growth journey also leveraging our recently launched With-Profits BPA proposition."