M&G plc (MNG.L) — Company Research

Last Updated: 26 October 2026

M&G plc is a UK savings, asset management and insurance group. It manages money for institutional and wholesale clients around the world through M&G Investments, and runs a large life business that includes PruFund, traditional with-profits policies and annuities sold under the Prudential brand in the UK. Since the last version of this report (10 June 2026) M&G has reported its best first-half operating profit since listing in 2019, raised its 2026 operating profit outlook, welcomed a director nominated by its new largest shareholder Daiichi Life, and taken a ground-rent hit to its IFRS result. Every figure below comes from M&G's results announcements, interim and annual reports and RNS notifications. There are no analyst opinions, price targets or ratings anywhere in it.

Share prices, and figures worked out from them, are not shown for London-listed companies on ChartsView.

1. Company Snapshot

Field	Value
Ticker / exchange	MNG — London Stock Exchange
Sector	Financials — asset management, life insurance, savings and annuities
Revenue (FY2025)	£22,041m gross IFRS income†, of which insurance revenue £4,425m, fee income £1,064m and other income £75m; the rest is investment return, most of which belongs to policyholders
Adjusted operating profit before tax (FY2025)	£838m (FY2024: £837m); H1 2026 £435m, up 15%
IFRS profit after tax (FY2025)	£314m including non-controlling interests; £302m attributable to M&G plc shareholders (FY2024: loss of £360m)
Basic EPS (FY2025)	12.6p (FY2024: (15.1)p); H1 2026 (7.1)p
Dividend per share (FY2025)	20.5p (6.7p first interim plus 13.8p second interim); 6.8p first interim for 2026, paid 16 October 2026
Operating capital generation	£765m in FY2025 (FY2024: £933m); £372m in H1 2026
Shareholder Solvency II coverage ratio	247% at 30 June 2026 (31 December 2025: 242%)
Assets under management and administration	£387.4bn at 30 June 2026 (31 December 2025: £375.9bn)
Employees	Over 6,000 colleagues, per the Chair's statement in the 2025 Annual Report
CEO / Leadership	Andrea Rossi, Group Chief Executive; Kathryn McLeland, Group Chief Financial Officer; Sir Edward Braham, Chair
Largest shareholder	Daiichi Life Group, 15.67% of voting rights (TR-1 notification, 1 April 2026)

† M&G's IFRS 17 income statement has no single "total revenue" line. ChartsView's gross income figure adds insurance revenue, interest revenue, other investment return, fee income and other income, before movements in investment contract liabilities, so that it can be compared with data-vendor totals. See Section 5.

2. The Bull and Bear Case

Bull Case

• Operating profit accelerating: H1 2026 adjusted operating profit rose 15% to £435m, the best first half since listing, and management now expects low double-digit operating profit growth for 2026.
• Strong capital position: the shareholder Solvency II ratio rose to 247% at 30 June 2026 with a £5.0bn surplus, and the leverage ratio was 29% on the new method.
• Daiichi partnership delivering: Daiichi Life owns 15.67%, has a director on the board and had channelled £1.1bn of inflows to M&G by mid-2026 under a partnership expecting at least US$6bn over five years.
• Open-business flows positive: net flows from open business were £7.8bn in 2025 and £2.4bn in H1 2026, and the new with-profits bulk annuity had written £1.7bn of deals by the end of August 2026.

Bear Case

• IFRS volatility: the group made an IFRS loss of £165m in H1 2026 after £551m of adverse short-term investment fluctuations, including £325m linked to the draft Commonhold and Leasehold Reform Bill on ground rents.
• Capital generation lower: operating capital generation fell to £765m in 2025 from £933m and to £372m in H1 2026 from £408m.
• Heritage outflows: total net client flows, including closed books, were −£1.6bn in 2025 and −£1.8bn in H1 2026 as older policies run off.
• Slow dividend growth: the dividend rose only 2% to 20.5p in 2025 and there has been no share buyback since the £500m programme that ended in October 2022.

3. Revenue Segments

M&G reports two operating segments, Asset Management and Life, plus Corporate Centre costs. It does not split total IFRS income by segment, so the percentages below are each business line's share of FY2025 adjusted operating profit before Corporate Centre costs (£1,044m in total), from the FY2025 results and the H1 2026 interim report.

Segment	% of revenue	What it is
Asset Management (£280m)	26.8%	M&G Investments: public and private markets funds for institutional and wholesale clients, plus money managed for M&G Life. Segment revenue £1,066m in FY2025; external AUMA £189.2bn and private markets AUMA £82.8bn at 30 June 2026.
Life — Shareholder annuities (£283m)	27.1%	Individual and bulk purchase annuities that pay guaranteed retirement incomes, backed by bonds and private credit.
Life — PruFund (£265m)	25.4%	Smoothed with-profits savings and retirement funds sold under the Prudential brand, now also offered on third-party adviser platforms. PruFund AUMA £73.1bn at 30 June 2026.
Life — Traditional with-profits (£258m)	24.7%	Older with-profits policies where shareholders receive a share of bonuses; traditional with-profits AUMA £64.8bn.
Life — Other (−£42m)	−4.0%	Unit-linked and protection business and Life costs not allocated elsewhere.

Corporate Centre costs were £206m in FY2025, mostly £139m of interest on debt. Capital-light businesses produced 80% of operating profit in H1 2026. Compare UK financial names on the ChartsView Live Charts page.

4. Business Model and Moat

How it makes money. Asset Management earns fees on money it manages, with a revenue margin of 32 basis points in H1 2026 (55 basis points on wholesale funds and 37 on institutional mandates). Life earns a margin on annuities, a share of with-profits bonuses and charges on PruFund. Most of the very large investment returns in the IFRS accounts belong to policyholders and are matched by changes in insurance liabilities, so the company manages itself on adjusted operating profit and capital generation instead.

Capital and cash. Subsidiaries sent £746m of cash to the holding company in 2025, which paid £482m of dividends and £166m of interest on core borrowings. Holding company cash and liquid assets were £649m at 30 June 2026. The 2025–2027 target is cumulative operating capital generation (before new business strain) of £2.7bn, of which £1,320m was delivered in the first 18 months.

The moat. The Prudential brand in UK savings, a £64.8bn traditional with-profits fund and a 375% with-profits fund solvency ratio let M&G offer smoothed and guaranteed products that few rivals can match. In Asset Management, £110bn of external assets come from international clients and the private markets platform adds higher-fee assets.

Dividend policy. M&G has a progressive dividend policy; the first interim each year is set at one third of the previous year's total. Cost savings of £250m were delivered by the end of 2025, and the Asset Management cost/income ratio target is 70% by the end of 2027 (73% in H1 2026).

5. Financial Health

M&G reports in pounds sterling under IFRS and adopted IFRS 17 from 2023, restating 2022. Under IFRS 17 there is no reported "total revenue" line, so the revenue column is a gross income total built from the reported income statement lines: insurance revenue, interest revenue, other investment return, fee income and other income. Because most of it is investment return that moves with markets and belongs largely to policyholders, it swings sharply from year to year.

Fiscal Year	Revenue (£m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	17,772‡	n/m	3.3p	3.3p†	18.3p	£3,216m
FY2022	(10,983)	n/m	(83.6)p	(83.6)p†	19.6p	£3,264m
FY2023	14,259	n/m	12.7p	12.7p†	19.7p	£3,242m
FY2024	14,356	+0.7%	(15.1)p	(15.1)p†	20.1p	£2,788m
FY2025	22,041	+53.5%	12.6p	12.6p†	20.5p	£2,760m

† M&G does not publish an adjusted EPS figure; basic EPS is repeated so the table stays complete. Its main profit measure is adjusted operating profit before tax: £721m (2021, IFRS 4), £625m (2022, IFRS 17 restated), £797m (2023), £837m (2024) and £838m (2025). ‡ FY2021 is "total revenue, net of reinsurance" under the old IFRS 4 basis and is not directly comparable; FY2022 to FY2025 are on the IFRS 17 basis, so growth is not meaningful before FY2024. FY2022 was negative because of falling bond and equity values in the 2022 gilt crisis; its EPS is the IFRS 17 restated figure (IFRS 4 basis: (66.0)p). Long-term debt is the nominal value of subordinated debt at each year end; balance-sheet "subordinated liabilities and other borrowings", which also include borrowings of consolidated investment funds, were £6,519m at 31 December 2025 and £6,074m at 30 June 2026.

Quarter / Half	Revenue (£m)	Adjusted EPS	GAAP EPS
H1 2026	11,348	(7.1)p†	(7.1)p
H2 2025 (derived)	13,974	about 2.5p†	about 2.5p
H1 2025	8,067	10.1p†	10.1p
FY2025 total	22,041	12.6p†	12.6p

M&G reports half-yearly. H2 2025 is the full year minus the first half and is approximate for EPS. † Basic EPS repeated, as above. Adjusted operating profit was £435m in H1 2026, £460m in H2 2025 and £378m in H1 2025. Within the H1 2026 gross income, insurance revenue was £2,297m (H1 2025: £1,986m) and fee income £565m (H1 2025: £527m). The H1 2026 IFRS loss after tax was £165m (£170m attributable to M&G plc shareholders) against a £248m profit in H1 2025.

Balance sheet at 30 June 2026. Cash and cash equivalents were £5,417m and equity attributable to M&G plc shareholders £2,620m. The contractual service margin, the store of future insurance profit under IFRS 17, was £7.0bn. Solvency II own funds were £8.4bn against a solvency capital requirement of £3.4bn.

Outlook. At the H1 2026 results management guided to low double-digit growth in adjusted operating profit for 2026, ahead of its target of at least 5% average annual growth over 2025–2027.

6. Valuation Metrics

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Adjusted operating profit before tax	£838m for FY2025; £435m for H1 2026, up 15%
Operating capital generation	£765m for FY2025 (£928m before new business strain); £372m for H1 2026
Shareholder Solvency II coverage ratio	247% at 30 June 2026; surplus £5.0bn
Leverage ratio	29% at 30 June 2026 on the new Solvency II value basis (33% on the old nominal basis)
Holding company cash and liquid assets	£649m at 30 June 2026 (31 December 2025: £727m)
IFRS equity attributable to shareholders	£2,620m at 30 June 2026
Dividend per share	20.5p for FY2025; 6.8p first interim for 2026
Shares in issue	2,413,425,551 at 30 June 2026
Short interest (% of float)	1.27% of issued share capital: the FCA's aggregate net short position for M&G, position date 12 October 2026. Since 13 July 2026 the FCA publishes only anonymised aggregates built from positions of 0.2% or more. Verify at fca.org.uk.
Days to cover	— not published for this period; M&G has no US-listed line and UK disclosures do not include days to cover

7. What Are They Building

A Japanese distribution partner. Under the strategic partnership agreed on 30 May 2025, M&G is Daiichi Life's preferred asset manager in Europe, with at least US$6bn expected to flow to M&G and US$2bn to Daiichi over five years. Daiichi built its stake to 15.67% by 1 April 2026 through market purchases and nominated Hitoshi Yamaguchi to the board from 3 September 2026. Inflows via Daiichi were £0.7bn in H1 2026.

With-profits for pension schemes. BPA Plus, a with-profits bulk purchase annuity launched in February 2026, lets pension schemes insure members while sharing in investment returns. M&G completed £1.7bn of bulk annuity deals by the end of August 2026, after £1.5bn across 11 deals in all of 2025.

PruFund on more platforms. PruFund went back to net inflows over the last seven months of 2025, launched on the Scottish Widows adviser platform in June 2026, and a second third-party platform is expected later in 2026.

Private markets. Private markets AUMA was £82.8bn at 30 June 2026, with £1.3bn of net inflows in H1 2026. M&G bought P Capital Partners in June 2025.

8. Competitive Landscape

M&G competes with UK life and pensions groups for annuity and savings business and with global fund managers for institutional and wholesale money.

Peer	Key 2025 metric
Legal & General (LGEN)	FY2025 core operating profit £1,623m, up 6% (full-year results RNS, 11 March 2026)
Aviva (AV.)	FY2025 operating profit about £2.2bn, up 25%, including £174m from Direct Line (FY2025 results, 5 March 2026, as reported)
Standard Life plc, formerly Phoenix Group	FY2025 IFRS adjusted operating profit £945m (2024: £825m); operating cash generation £1,474m (2025 results, 16 March 2026)
aberdeen group (ABDN)	FY2025 adjusted operating profit £264m; AUMA £556bn (final results RNS, 3 March 2026)
Schroders (SDR)	FY2025 adjusted operating profit £756.6m; AUM £823.7bn (results 12 February 2026, when it also agreed a recommended cash offer from Nuveen)

M&G's £838m of FY2025 adjusted operating profit is about half of Legal & General's, close to Standard Life's and above the listed pure asset managers; its £387.4bn of AUMA is smaller than aberdeen's or Schroders'.

9. Leadership and Insider Activity

Andrea Rossi is Group Chief Executive (CEO), Kathryn McLeland is Group Chief Financial Officer and Sir Edward Braham is Chair. From 3 September 2026 Clare Thompson stepped down from the board, Clare Chapman became Senior Independent Director, Paul Evans became Audit Committee Chair and Hitoshi Yamaguchi joined as Daiichi Life's nominated non-independent director. Matt Mansour joined as Chief Information Technology and AI Officer in September 2026.

The following director and PDMR dealings were disclosed through RNS notifications between September and October 2026. On 16 October 2026 dividend-equivalent shares also accrued on deferred and performance share awards held by Andrea Rossi, Kathryn McLeland and seven other PDMRs.

Name	Date	Type	Shares	Plan Type
Charlotte Heiss (Group General Counsel)	19 Oct 2026	Vesting into holding period	201,433	2023 PSP recruitment award
Louise Shield; Shawn Gamble	19 Oct 2026	Dividend reinvestment	5,180; 763	Personal holdings
Simon Tasker	16 Oct 2026	Dividend-equivalent accrual	9,379	DIP and PSP awards
Charlotte Heiss; Matthew Howells	09 Oct 2026	Option grant	6,740; 4,044	Sharesave (three-year contract)
Joseph Pinto (CEO, Asset Management)	02 Oct 2026	Sale to cover tax	41,058	Deferred incentive plan release
Shawn Gamble (Group Chief Risk and Compliance Officer)	01 Oct 2026	Option exercise; sale to cover tax	41,470 sold	Performance share plan
Shawn Gamble (Group Chief Risk and Compliance Officer)	28 Sep 2026	Vesting into holding period	164,852	PSP recruitment award
Matt Mansour (Chief IT and AI Officer)	24 Sep 2026	Grant of nil-cost option	247,153	Performance share plan

10. Key Risks

• Market returns (Market): falling bond, equity or property values reduce fee income, with-profits shareholder transfers and the IFRS result; 2022's gilt crisis produced an IFRS loss of £2,055m.
• Ground-rent legislation (Regulatory): the draft Commonhold and Leasehold Reform Bill, published in January 2026, already caused a £325m pre-tax hit in H1 2026; the final law could change the value of ground-rent assets again.
• Credit quality (Credit): annuities are backed by corporate bonds and private credit; defaults or downgrades would reduce capital generation and the Solvency II surplus.
• Heritage run-off (Commercial): total net client flows were negative in 2025 and H1 2026 as closed books run off, so growth depends on winning new open-business and bulk annuity flows.
• Execution on costs and platforms (Operational): the 70% Asset Management cost/income target for 2027, new outsourcing for the M&G platform and PruFund's move onto third-party platforms all carry delivery risk.
• Shareholder concentration (Governance): Daiichi Life holds 15.67% and has a board seat, giving one partner significant influence over strategy.

11. Recent Developments

• 01 Apr 2026 — Daiichi Life becomes largest shareholder. A TR-1 notification showed Daiichi Life Group's holding at 15.67% of voting rights, up from 9.60%.
• 19 Aug 2026 — Daiichi nominee joins the board. Hitoshi Yamaguchi, Daiichi Life Group's Chief HR Officer, was appointed a non-independent non-executive director from 3 September 2026.
• 03 Sep 2026 — H1 2026 results. Adjusted operating profit rose 15% to £435m and the Solvency II ratio reached 247%, but the IFRS result was a £165m loss after ground-rent and other market fluctuations; the interim dividend rose to 6.8p and 2026 guidance moved to low double-digit operating profit growth.
• 03 Sep 2026 — Board changes take effect. Clare Thompson stepped down; Clare Chapman became Senior Independent Director and Paul Evans Audit Committee Chair.
• 24 Sep 2026 — New technology chief. Matt Mansour, the new Chief Information Technology and AI Officer, received a performance share award.
• 16 Oct 2026 — Interim dividend paid. The 6.8p first interim dividend for 2026 was paid to shareholders on the register on 11 September.

12. Key Dates to Watch

• 05 Nov 2026 — Q3 2026 trading update (M&G financial calendar)
• Expected Mar 2027 — FY2026 full-year results and second interim dividend (FY2025 results were published on 12 March 2026)
• Expected Apr 2027 — payment of the 2026 second interim dividend (the 2025 second interim was paid on 30 April 2026)
• TBC — launch of PruFund on a second third-party adviser platform, which M&G expects later in 2026
• 31 Dec 2027 — end of the 2025–2027 target period: average operating profit growth of at least 5% a year and £2.7bn of cumulative operating capital generation

Bank of England decisions and UK inflation data, which drive bond yields and annuity pricing, are on the ChartsView Economic Calendar. Discuss UK insurers and asset managers with other investors in the ChartsView Forum.

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