Annual profits at M&G plc rose 5% in 2024 to £837m as the effects of a cost-cutting programme and growth in its asset management business took hold.

Reporting its results for the calendar year 2024, the London-based savings and investment group said that “expected” net outflows of £1.9bn “continued from UK DB clients in asset management which have been largely offset by net flows internationally”. In 2023 the group enjoyed net inflows of £1.7bn.

Andrea Rossi, Group Chief Executive Officer, said: “Since starting at M&G, my priority has been to strengthen the foundations of the business. Despite a tough market environment we have done this.

“In 2024 we have reduced debt, simplified our operating model, grown Asset Management adjusted operating profit by nearly 20%, and continued to drive positive momentum in Life, completing £0.9 billion of bulk purchase annuity deals and launching a new innovative solution.

The group announced two new targets for 2025-2027: to grow adjusted operating profit before tax on average by 5% or more per annum, and to generate £2.7 billion of operating capital.

The operating capital target is slightly below existing expectations. On the operating profit target, the market already expects an annual growth rate in line with guide, but as the starting point is higher than forecasted, there could be some upside risk to consensus.

Source: Fund Europe