Key facts
- M&G's adjusted operating profit rose 15% to £435 million in the first half of 2026.
- The company achieved £2.4 billion in net inflows from its open business.
- Assets under management and administration increased to £387 billion.
- M&G completed £1.7 billion in bulk purchase annuity transactions in the first eight months of 2026.
- The company reported an IFRS loss after tax of £165 million due to investment return fluctuations.
M&G has reported a 15% increase in adjusted operating profit to £435 million for the first half of 2026, marking its best first-half performance since listing in 2019. This growth was driven by its asset management business and substantial net inflows.
The company's Asset Management division saw a 24% rise in adjusted operating profit to £159 million, contributing significantly to the overall results. M&G attracted £2.2 billion in net inflows from external clients within this division, including £700 million from its partnership with Daiichi Life Group. Assets under management and administration grew to £387 billion.
M&G's Life business also performed well, with adjusted operating profit increasing by 9% to £375 million. The group has accelerated its activity in the bulk purchase annuity (BPA) market, completing £1.7 billion in deals by the end of August 2026, surpassing its total annuity volumes for the entirety of 2025.
Despite the strong underlying operating performance, M&G reported an IFRS loss after tax of £165 million, primarily due to adverse short-term fluctuations in investment returns, including £325 million related to proposed changes in ground-rent legislation. The company declared an interim dividend of 6.8p per share and expects low double-digit adjusted operating profit growth for the full year.
In separate news, Lazard's UK business returned to profit with declining staff costs, according to Mark Versey. Brooks Macdonald is also resuming its acquisition strategy following a period of cost-cutting.