M&G has posted a resilient set of half-year results for 2025, underpinned by strong net flows, improved efficiency in Asset Management, and solid contributions across its Life business.
The group reported £2.1 billion of net inflows from its open business, a £3.2 billion improvement on the same period last year, with particularly strong momentum from external clients in Asset Management. This helped lift total AUMA to £354.6 billion, up from £346.1 billion a year earlier.
Asset Management revenues rose to £514 million (2024: £499 million), while costs remained stable at £388 million despite inflationary pressures and investment in growth. This translated into an improved cost-to-income ratio of 75% (2024: 77%). In Life, both PruFund and Traditional With-Profits delivered higher operating profit year-on-year, offsetting a weaker result from shareholder annuities.
Overall, adjusted operating profit edged up to £378 million (2024: £375 million). Importantly, profit after tax swung sharply higher to £248 million, compared with a £56 million loss in the first half of 2024, helped by improved investment returns under IFRS 17.
Capital generation remained robust at £408 million, with an 11% year-on-year increase in the underlying result. The group’s Solvency II coverage ratio strengthened to 230%, despite paying its 2024 final dividend in May. Reflecting this stability, the Board declared a first interim dividend of 6.7p per share, slightly ahead of last year.
Andrea Rossi, Group CEO at M&G, highlighted the group’s international expansion as a key driver of growth, noting that 58% of Asset Management’s third-party assets now come from overseas clients, up from 37% five years ago. He also pointed to the strategic partnership with Japan’s Dai-ichi Life, expected to deliver at least $6 billion of new flows over the next five years, as evidence of M&G’s growing global reach.
Rossi commented: “I am pleased with our progress over the first six months of the year. A key highlight is the positive £2.1 billion net flows from open business, a £3.2 billion improvement from the same period last year. This is a strong result underpinned by £2.6 billion net inflows from external clients in Asset Management.
“This growth has been supported by our market leading investment performance and continued international expansion. Today, 58% of our Asset Management third party AUMA comes from International clients, up from 37% five years ago. This cements our position as a leading international active asset manager, with an established footprint in Europe and growing access to attractive Asian markets.
“In May, we also announced a long-term strategic partnership with Dai-ichi Life, becoming their preferred asset manager for Europe. We expect this collaboration to generate at least $6 billion of new business flows over the next five years, and to further support our international growth ambitions.
“In Asset Management, while growing, we also continue to focus on efficiency, as we reduced the cost-to-income ratio from 77% to 75%. We expect this positive trend to continue, as we further improve our operating leverage through cost discipline and top-line growth.
“We are broadening our product offering in Life, with the planned launch of our With-Profits Bulk Purchase Annuity (BPA) early next year. This solution will be a key competitive advantage in the UK retirement market. PruFund continues to deliver strong investment outcomes and, thanks to the smoothing mechanism, protected its clients from the market volatility in April. This performance has generated increased client demand, improved sales, and has led to positive net inflows since June.
“The balanced and diversified nature of our business model, as well as the momentum across our Asset Management and Life businesses, gives me confidence for the future. We continue to build on our strong foundations to deliver long-term growth for our customers, clients and shareholders, which is high-quality and diversified across products, segments, and markets.”
Product innovation also remains a focus. PruFund has continued to attract strong demand thanks to its ability to shield investors from recent market volatility, while the group is preparing to launch a With-Profits Bulk Purchase Annuity in 2026—aimed at enhancing its competitive edge in the UK retirement market.
Looking ahead, M&G said its diversified business model, international footprint and focus on efficiency leave it well positioned to deliver long-term growth.
