M&g Plc · LSE:MNG
M&g — FY2025 Earnings Presentation
59 slides from M&g's earnings presentation, Mar 12, 2026
Slide 1: 2025 Full Year Results
Financial strength Simplification Growth 2025 Full Year Results 12 March 2026 1
Slide 2: Forward looking statement
M&G plc 2025 Full Year Results Forward looking statement This document may contain certain ‘forward-looking statements’ with respect to M&G plc (M&G) and its affiliates (the Group), its plans, its current goals and expectations relating to future financial condition, performance, results, operating
Slide 3: Strategic review
Strategic review Andrea Rossi, Group Chief Executive 3
Slide 4: Continuing to deliver against our strategic priorities
Continuing to deliver against our strategic priorities Priorities Key highlights 1 Financial strength • Increased 2025 total DPS by 2% to 20.5p, in line with progressive dividend policy • Achieved £250m cost savings, with transformation programme, beating upgraded target • Delivered strong £7.0bn ex
Slide 5: Building on our synergistic and differentiated business model
Building on our synergistic and differentiated business model Asset Management Life Our Ambition: Be the go-to asset manager in Our Ambition: Establish as a growth engine Europe and Asia, with a leading private markets for the Group, underpinning earnings and franchise supported by long-term interna
Slide 6: Delivering growth in Asset Management
Delivering growth in Asset Management More external clients More international Continued strong growth with international and wholesale clients, International AUMA have grown to £107bn, UK institutional clients back to net inflows for the first time since 2023 (£bn) now representing nearly 60% of to
Slide 7: Partnering with some of the most sophisticated allocators in the world
Partnering with some of the most sophisticated allocators in the world Examples of strategic international client relationships Dai-ichi Life HD ❖ M&G has become Dai-ichi’s preferred asset management partner in Europe ❖ Collaboration expected to also include opportunities in Life insurance ❖ Dai-ich
Slide 8: Driving strong net flows into high-quality and high-margin areas
Driving strong net flows into high-quality and high-margin areas Strong net flows Private markets Public markets Private Public Scaled £81bn Benefitting markets markets private markets from outstanding franchise diversified £5.6bn net inflows across asset classes in Public Equities1 £7.0bn Strong £3
Slide 9: Consistent flows and performance in Public Equities
Consistent flows and performance in Public Equities Distinctive capabilities Strong performance Consistent net inflows High-conviction active fund ❖ c. 90% of AUMA ranked in top two quartiles over 5 years c. £12bn Cumulative net inflows management in high-value propositions ❖ c. 75% of AUMA ranked i
Slide 10: Growing Life new business in the retail market
Growing Life new business in the retail market PruFund back to consistent net inflows in H2 Broadening proposition 2025 PruFund net flows H1 H2 ➔ Integrated PruFund monthly data (£m) £585m net outflows £406m net inflows on FNZ technology 2025 127 Launched retail 94 fixed-term annuity 71 67 21 26 S
Slide 11: Growing Life new business in the corporate pension risk transfer market
Growing Life new business in the corporate pension risk transfer market 2023 2024 2025 2026 2027 Reopen Innovate Build With-Profits Target Milestones: Completed first Launched Completed Launched Long-term Bulk Purchase Value Share BPA team build-out With-Profits BPA capital-light growth Annuity deal
Slide 12: From 2026, all With-Profits new business is on a pure fee-based model
From 2026, all With-Profits new business is on a pure fee-based model With-Profits Fund is now the key writer of … driving fee-related earnings growth insurance new business for the Group… in both Life and Asset Management Provides execution, admin, distribution Corporate capabilities, operational r
Slide 13: Capital framework focus is on attractive dividend and business growth
Capital framework focus is on attractive dividend and business growth Long-term operating ranges: Financial Increasing DPS by 2% • Solvency II coverage ratio of 160-190% Attractive to 20.5p for 2025, strength and in line with progressive • Solvency II leverage ratio <30%1 dividends • HoldCo liquidit
Slide 14: Capital deployment supports attractive dividend and business growth
Capital deployment supports attractive dividend and business growth Capital deployment Simplification: Restructuring and transformation spend Ordinary Growth: dividend PCP acquisition Capital deployed £928m Growth: New Operating capital in 2025 business strain generated in 2025 before new Target dou
Slide 15: Update on our financial targets
Update on our financial targets Priorities Targets 2025 progress Outlook £2.7bn cumulative OCG Primary driver of Generated £928m On target 1 Financial strength over 2025-2027, before new business strain ongoing financial resilience capital before new business strain run-rate for £2.7bn Improved CIR
Slide 16: Financial review
Financial review Kathryn McLeland, Chief Financial Officer 16
Slide 17: Growing net flows, resilient Operating Profit, strong balance sheet
Growing net flows, resilient Operating Profit, strong balance sheet Financial highlights Net flows from Adjusted Operating Shareholder SII open business1 Operating Profit Capital Generation coverage ratio £7.8bn £838m £765m 242% Strong across segments Flat year-on-year £928m before new business stra
Slide 18: £7.8bn net flows from open business, almost £10bn higher YoY
£7.8bn net flows from open business, almost £10bn higher YoY AUMA and net flows Movement in AUMA (£bn) Net flows from open business (£bn) 31.61 376 2024 2025 Change 7.0 0.8 346 Wholesale 73 (9.4) Asset Mgmt. Wholesale AM - 3.0 3.0 63 £7.8bn net flows from open business Institutional AM (0.9) 4.0 4.9
Slide 19: Stable Operating Profit of £838m, 73% from capital-light sources
Stable Operating Profit of £838m, 73% from capital-light sources Adjusted Operating Profit by source (£m) 2024 2025 Change Sources of earnings (% split) Asset Management 289 280 (3)% Fee-related earnings 234 261 12% Asset Shareholder Management Annuities Performance fees 35 15 (57)% Inv. income and
Slide 20: Asset Management: 12% growth in fee-related earnings
Asset Management: 12% growth in fee-related earnings Strong margins and revenue growth lead to an improved 75% CIR End of period AUM Fee margins1 Financial result (£bn) (bps) (£m) YoY 2023 2024 2025 345 change 314 315 314 325 Wholesale 310 316 370 17% 305 58 73 Average 56 Institutional 376 368 383 5
Slide 21: Life: PruFund profits +17% and Traditional With-Profits +16% YoY
Life: PruFund profits +17% and Traditional With-Profits +16% YoY Improved result driven by higher opening CSM balance With-Profits: PruFund With-Profits: Traditional (£m) Small move in CSM (£m) Small move in CSM amortisation from amortisation from 10.8% to 11.1% 12.8% to 13.1% 2024 2025 2024 2025 CS
Slide 22: Life: Shareholder Annuities -8% YoY and deterioration in Other Life
Life: Shareholder Annuities -8% YoY and deterioration in Other Life Main driver of YoY reduction in Annuities is lower expected return on excess assets Shareholder Annuities Other Life (£m) (£m) YoY increase due to higher opening CSM 2024 2025 and small change in 2024 2025 amortisation rate2 Annuity
Slide 23: Operating Capital Generation before new business strain of £928m
Operating Capital Generation before new business strain of £928m Run-rate on track to achieve three-year cumulative target of £2.7bn Operating Capital Generation (£m) 2024 2025 Asset • Underlying Capital Generation of Management 261 275 £529m was 18% lower YoY • Life in-force contribution reduced Li
Slide 24: Strong Operating Capital Generation lifts Solvency II ratio to 242%
Strong Operating Capital Generation lifts Solvency II ratio to 242% Pro-forma Solvency II ratio including impact from Ground Rents is 239% 26% 5% 8% 239% (4%) (16%) pro-forma for Ground Rent Solvency II ratio1 223% 242% (%) 0.8 0.0 0.1 (0.1) (0.6) Solvency II surplus 4.7 5.0 (£bn) Of which Of which
Slide 25: £250m of cost savings delivered, exceeding upgraded target of £230m
£250m of cost savings delivered, exceeding upgraded target of £230m Targeted actions fully offset inflation and freed up capacity to invest in growth M&G managed cost base1 Capacity creation Growth investments FY 2022 vs. FY 2025 (£m) £65m from Group-wide £15m to enhance investment +0.6% organisatio
Slide 26: 2026 guidance
2026 guidance Operating • Revenue growth due to higher opening AUMA of £345bn, client inflows and resilient margins Asset Profit Mgmt. • Expect costs to remain in line with H2 level through continued cost discipline Accelerating • Broadly stable performance fees and small reduction in investment inc
Slide 27: Investment case
Investment case Andrea Rossi, Group Chief Executive 27
Slide 28: M&G investment case: Europe's leading integrated asset manager
M&G investment case: Europe’s leading integrated asset manager Our Growing and diversified savings and investment franchise, business powered by unique ring-fenced With-Profits Fund and strong balance sheet today m m m operating European International UK retail UK Pension Risk in structurally privat
Slide 29: Operating in growing markets with clear competitive strengths
Operating in growing markets with clear competitive strengths Competitive strengths Growing Scaled Synergistic markets franchises business model European 11% CAGR 2024-30 £81bn AUMA • >80% of Life AUMA managed to £19trn AUM in 2030 up c. 10% YoY internally, c. 30% of new business private markets all
Slide 30: Delivering strong financial outcomes
Delivering strong financial outcomes M&G has delivered double digit annual returns and returned £4.2bn to investors1 Combining growth in fee-related earnings Track record of double-digit annual total with durable and predictable underpin returns through yield + growth + quality Yield Growth Asset Re
Slide 31: Key Messages
Key Messages Achieved strong and improved flows across segments 1. underpinning long-term sustainable growth Continued to drive diversified international growth 2. broadening our presence, distribution and offering Expect Operating Profit to accelerate in 2026 3. committed to deliver avg. annual AOP
Slide 32: Thank you
1 Financial strength Thank 2 Simplification you 3 Growth 32
Slide 33: Appendix
Appendix Additional financial information 33
Slide 34: Adjusted Operating Profit
Adjusted Operating Profit From Adjusted Operating Profits to IFRS Profit After Tax (£m) 2024 2025 Revenues 1,008 1,066 Management Cost (774) (805) Asset Performance fees 35 15 Investment income and minority interest1 20 4 Total Asset Management 289 280 With-Profits: PruFund 226 265 With-Profits: Tra
Slide 35: Adjusted Operating Profit
Adjusted Operating Profit Additional details (£m) 2024 2025 Asset Management 2024 2025 Revenues 1,008 1,066 Investment income 36 22 Minority interest1 (16) (18) Costs (774) (805) Total 20 4 Performance fees 35 15 Investment income and minority interest1 20 4 Total Asset Management AOP 289 280 Life 2
Slide 36: Adjusted Operating Profit
Adjusted Operating Profit Asset Management result by asset class End of period AUM Fee margins1 Financial result (£bn) (bps) (£m) YoY 2023 2024 2025 345 change 315 314 325 Private markets 422 418 429 3% 314 303 Average 58 81 57 56 Public markets 573 590 637 8% of period 73 74 AUM Total revenues 995
Slide 37: CSM movements over 2025
CSM movements over 2025 CSM of £6.6bn represents significant stock of discounted future insurance value CSM movements CSM movements by product line (£m) Op. change £m YE 2024 A B C D E YE 2025 in CSM 144 109 605 310 6,589 Total 6,033 605 144 109 (612) 246 310 6,589 6,033 (612) Annuities 1,380 38 23
Slide 38: CSM movements – Historic data
CSM movements – Historic data PruFund, Traditional With-Profits, and Annuities With-Profits: With-Profits: Shareholder With-Profits: Traditional Traditional Other1 Annuities PruFund Shareholder Policyholder (£m) 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Opening CSM 1,221 1,380 1,721 1,771 1,
Slide 39: Operating Capital Generation
Operating Capital Generation Own Funds and SCR movements 2024 2025 (£m) Own Funds SCR Total Own Funds SCR Total Asset Management 254 7 261 258 17 275 With-Profits: PruFund 292 (53) 239 311 (77) 234 In-force 217 47 264 210 41 251 New business 75 (100) (25) 101 (118) (17) With-Profits: Traditional 158
Slide 40: Operating Capital Generation
Operating Capital Generation Details on Other Operating Capital Generation Operating Capital Generation (£m) 2024 2025 Underlying Capital Generation 644 529 • 2025 primarily benefits from capital model Model developments 160 88 calibrations and small model developments in our Irish and Polish subsid
Slide 41: Assets Under Management and Administration
Assets Under Management and Administration Our asset base as Group, as an Asset Owner and an Asset Manager More details on the following page Group view: £376bn AUMA Asset Owner view3 Asset Manager view 2bn - Corporate Assets1 2bn - Corporate Assets1 Other Group Assets 42 Other 31 £345bn1 With-Profi
Slide 42: Assets Under Management and Administration £345bn AUMA
Assets Under Management and Administration Asset Management view split by asset class, client, and geography Diversified capabilities A successful external franchise Established footprint4 strong scale in private assets and a supportive internal client with opportunity to grow Impact and Private Equ
Slide 43: Assets Under Management and Administration
Assets Under Management and Administration Group wide flows, market and other movements – YE 2022 to YE 2025 Net Market / Net Market / Net Market / (£bn) YE 2022 Inflows Outflows Flows Other YE 2023 Inflows Outflows Flows Other YE 2024 Inflows Outflows Flows Other2 YE 2025 Institutional 99.2 14.8 (1
Slide 44: Wholesale Asset Management: Mutual funds performance
Wholesale Asset Management Mutual funds performance Mutual funds performance as of YE 2023, YE 2024 and YE 2025 (as % of AUMA) 31 33 36 43 44 46 42 45 56 22 20 6 16 34 21 18 31 13 18 16 32 15 36 6 21 26 32 25 29 19 22 17 8 12 5 4 YE-23 YE-24 YE-25 YE-23 YE-24 YE-25 YE-23 YE-24 YE-25 5-year 3-year 1-
Slide 45: Largest SICAV and OEIC mutual funds
Wholesale Asset Management Largest SICAV and OEIC mutual funds AUMA and Flows (£bn) RANK ASSET MARKET/ PRODUCT FUND YE 2024 SALE REDEMPTION NET FLOWS YE 2025 by AUMA CLASS OTHER 1 OEIC + SICAV Bonds Optimal Income 9.08 1.68 (2.48) (0.80) 0.57 8.85 2 OEIC + SICAV Equities Japan 4.39 1.80 (1.53) 0.27
Slide 46: Largest SICAV mutual funds
Wholesale Asset Management Largest SICAV mutual funds AUMA and Flows (£bn) RANK ASSET MARKET/ PRODUCT FUND YE 2024 SALE REDEMPTION NET FLOWS YE 2025 by AUMA CLASS OTHER 1 SICAV Bonds Optimal Income 7.72 1.39 (2.03) (0.64) 0.49 7.56 2 SICAV Equities European Strategic Value 1.84 3.21 (1.00) 2.21 1.04
Slide 47: Largest OEIC mutual funds
Wholesale Asset Management Largest OEIC mutual funds AUMA and Flows (£bn) RANK ASSET MARKET/ PRODUCT FUND YE 2024 SALE REDEMPTION NET FLOWS YE 2025 by AUMA CLASS OTHER 1 OEIC Equities Japan 3.61 1.39 (1.30) 0.09 0.80 4.51 2 OEIC Equities Global Dividend 2.17 0.47 (0.43) 0.03 0.24 2.45 3 OEIC Equitie
Slide 48: Strategic Asset Allocation
With-Profits Fund Strategic Asset Allocation Asset allocation evolution between 2013 and FY 2025 Asset allocation as of 31 Dec 2025 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Equities Real Estate Alternatives Fixed Income LEGEND UK As
Slide 49: With-Profits Fund: Historical returns
With-Profits Fund Historical returns Annualised 5-year rolling returns1 PruFund Growth returns PruFund Growth returns after charges 25% (% returns above capital invested)2 163% Cash SONIA Cumulative Rate 20% UK RPI Cumulative Rate PruFund Growth Fund 104% 15% ABI Mixed Investment 20-60% shares 84% 1
Slide 50: Solvency II: M&G Group position
Solvency II M&G Group position YE 2025 (£bn) Shareholder view With-Profits Fund view Regulatory view 11.4 2.9 Surplus = 5.0 6.4 Surplus = 5.0 Surplus = 7.1 10.0 2.9 8.5 8.5 3.5 2.9 3.5 Own Funds SCR Own Funds SCR Own Funds SCR Solvency ratio 242% Solvency ratio 342% Solvency ratio 178% 50 Note: All
Slide 51: Solvency II: Breakdown of the Shareholder SCR by risk type
Solvency II Breakdown of the Shareholder SCR by risk type YE 2025 (£bn) 8.8 0.5 Sectoral Operational & 2.1 expense 0.5 Lapse Longevity 1.0 1.1 Currency 3.5 Credit 1.2 (5.3) 0.3 Interest rate Property 0.6 1.5 Equity Undiversified SCR Diversification, SCR deferred tax, and other 51
Slide 52: Solvency II: Sensitivities
Solvency II Sensitivities and estimated impact on % ratio and surplus Shareholder Solvency II market sensitivities With-Profits Solvency II market sensitivities YE 2025 YE 2025 Solvency ratio Surplus Solvency ratio Surplus (%) (£bn) (%) (£bn) Base Shareholder position 242 5.0 Base With-Profits posit
Slide 53: Solvency II: Coverage and leverage ratio
Solvency II Coverage and leverage ratio (also shown on a IFRS 17 basis) Solvency II coverage ratio Leverage YE 2025, alternative views (£bn) YE 2025 (£bn) 10.5 8.5 8.5 8.5 Nominal 2.8 value of 1.0 debt 5.0 surplus 0.7 3.9 26% 242% 32% CSM net 4.6 of tax1 Corporate 3.5 3.5 centre 0.2 2.8 2.8 0.5 Sect
Slide 54: Credit quality of the Shareholder Annuity book
Credit quality of the Shareholder Annuity book 96% of Shareholder Annuity assets are investment grade1 Breakdown by rating Breakdown by capital ranking Outer circle shows YE-25, inner YE-24 Outer circle shows YE-25, inner YE-24 ▪ Our diversified and actively managed Annuity portfolio continued to pe
Slide 55: Ground Rents
Ground Rents Estimated financial impact of proposed legislation Solvency II one-off Own Funds c. £180m reduction impact in 2026 based on FY 2025 opening balance sheet SCR c. £35m reduction1 Surplus c. £145m reduction SH coverage ratio < 3ppts reduction Leverage ratio < 1ppts increase IFRS one-off Da
Slide 56: Financial debt structure
Financial debt structure Subordinated debt (all Tier 2) ISIN Currency Nominal (m) Coupon Issue Date Maturity Date Call Date XS1888930150 USD 500 6.500% 2018 2048 2028 XS1888920276 GBP 750 5.625% 2018 2051 2031 XS1243995302 GBP 439 5.560% 2015 2055 2035 XS1003373047 GBP 700 6.340% 2013 2063 2043 XS18
Slide 57: Parent company liquidity
Parent company liquidity Cash and liquid assets at £0.73bn Parent company cash and liquid assets YE 2025 (£bn) 0.75 (0.22) 0.73 0.73 (0.53) FY 2024 Cash remittances Corporate costs and Cash dividends and FY 2025 1 2 from subsidiaries other movements shares purchased by EBT 1. Includes Corporate cost
Slide 58: Our international footprint
UK £262bn 2 Corporate Assets 30 Europe £81bn Our 45 7 international 185 32 footprint 41 5 £376bn AUMA 10 2 Asia-Pac 2 £15bn Americas 4 £4bn 10 Middle East Life & Africa Wholesale Asset Management Institutional Asset Management £14bn Note: All AUMA figures refer to position as of FY 2025, based on th
Slide 59: Thank you
Luca Gagliardi Group Director of Strategy and Investor Relations +44 (0)20 8162 7301 luca.gagliardi@mandg.com Simran Parmar Head of Investor Relations - Equity +44 (0)20 8162 0956 Thank you simran.parmar@mandg.com Maria Baines Investor Relations Event Manager +44 (0)20 8162 6122 maria.baines@mandg.c