M&G : Financial supplement (mandg plc interim report hy26 fin supp)

M&G plc half year 2026 results

"I am very pleased with our progress over the first six months of the year. We delivered record adjusted operating profit, strong net inflows and continued growth in BPA volumes, while achieving positive outcomes for our customers and clients.

"The business is performing strongly, with adjusted operating profit of £435 million, up 15% year on year, our best first half result since listing in 2019. We continue to execute on our strategy, successfully driving the Group towards high-quality and capital-light earnings, which now account for 80% of total adjusted operating profit.

"Net inflows from open business of £2.4 billion reflect the breadth and strength of our offering, with Asset Management delivering £2.2 billion of net inflows from external clients, including £0.7 billion through our partnership with Daiichi Life Group.

"In Life, we launched our new With-Profits BPA Plus proposition and have completed £1.7 billion of deals so far this year, already exceeding total annuity volumes achieved in 2025.

"M&G continues to grow and transform, becoming a more diversified, efficient, and capital-light business. With a clear strategy, disciplined execution and the right resources in place, I am confident in our outlook for the second half of 2026 and in our ability to deliver sustainable long-term value for customers, clients and shareholders."

1. Definitions of key performance measures are provided in the Supplementary information section of the Interim Financial Report on page 64.

2. Net flows from open business consists of net client flows from Asset Management, PruFund, Annuities and the parts of Other Life open to new business.

   H1 2026 financial highlights: Record H1 adjusted operating profit

   • Adjusted Operating Profit of £435 million (H1 2025: £378 million) is 15% higher year-on-year, driven by 24% growth in the Asset Management contribution and 9% growth in Life.

   • Improved Asset Management AOP of £159 million (H1 2025: £128 million) benefitted from higher recurring revenues of £565 million (H1 2025: £514 million) underpinning a £22 million increase in fee-based earnings.

   • Life AOP increased to £375 million (H1 2025: £344 million), driven by higher results in PruFund and Traditional With-Profits, reflecting the higher opening CSM, more than offsetting a lower contribution from Annuities.

   • Corporate Centre loss of £99 million (H1 2025: £94 million) increased year-on-year due to lower interest income, driven by lower short-term interest rates, and slightly higher head office costs.

   • IFRS loss after tax of £165 million (H1 2025: £248 million profit) was impacted by £551 million adverse short-term fluctuations in investment returns, of which £325 million (pre-tax) relates to proposed changes to Ground Rent legislation.

   • The CSM grew by 6% to £7.0 billion (31 Dec 2025: £6.6 billion) representing a meaningful store of future value; growth was driven by an operating change of £54 million and positive market and other movements of £309 million.

   • OCG of £372 million (H1 2025: £408 million) reduced year-on-year mainly due to movements in the capital requirements of the Asset Management and Corporate Centre segments.

   • The 2026 first interim dividend of 6.8 pence per share (30 June 2025: 6.7 pence per share) is mechanically set as one third of the previous year's total dividend, in line with our progressive dividend policy. The first interim dividend is payable on 16 October 2026.

     H1 2026 operational highlights: Delivering on our strategic priorities

   • Achieved net inflows from open business of £2.4 billion despite a volatile external environment, demonstrating the Group's ability to deliver diversified growth across segments and markets.

   • Asset Management accounted for the majority of the inflows, with net inflows from external clients of £2.2 billion, including positive results across both Wholesale and Institutional clients, as we grew in the UK and internationally.

   • Continued to improve the diversification of our Asset Management business, growing external client assets to £189 billion (53% of total Asset Management AUMA), of which £110 billion is from international clients.

   • Delivered £13 million in Asset Management annualised net new revenues as we continue to attract clients to our high-value solutions, in particular in private markets, with net inflows of £1.3 billion and AUMA of £83 billion.

   • Launched our With-Profits Bulk Purchase Annuity proposition (BPA Plus), in February, delivering £0.6 billion of inflows in H1 and a further £1.1 billion over July and August; improving on last year's total annuity flows in just eight months.

   • Launched PruFund on the Scottish Widows adviser digital platform in June, and expect to launch on a second third-party platform later in the year.

   • Declared an inaugural bonus of 0.45% on our With-Profits Fixed-Term Annuity (the Prudential Guaranteed Income Plan), which we launched in July 2025, delivering improved outcomes to our customers.

     Outlook: Good progress on our financial targets and continued business momentum

   • M&G is well positioned to deliver strong long-term financial outcomes, operating in structurally growing markets with clear competitive strengths and leveraging its balanced and synergistic business model.

   • Our strategic priorities are clear: maintain our financial strength, continue to simplify our business, and drive profitable growth across markets and segments.

   • We are committed to achieving an average annual growth in adjusted operating profit before tax (AOP) of at least 5% over 2025-2027 and, supported by the strong financial performance delivered so far in 2026, we expect to achieve low double-digit AOP growth on a Full Year basis.

   • We continue to progress towards our target cost-to-income ratio of 70% and, having already achieved a 73% ratio in the first half of the year, we expect further improvements in H2 2026.

   • We are on-track to meet the target of £2.7 billion cumulative Operating Capital Generation excluding new business strain over 2025-2027.

   • Finally, despite a volatile external environment, new business momentum remains positive across the Group. In Asset Management, we achieved net inflows from external clients of £1.0 billion in July, while in Life, we are confident in delivering continued growth in BPA volumes in the second half.

1. The condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting ('IAS 34'), as adopted by the UK, and the Disclosure and Transparency Rules of the Financial Conduct Authority based on the consolidated financial statements of M&G plc.

2. The Solvency II results include transitional measures, which are recalculated as at the valuation date, using management's estimate of the impact of operating and market conditions.

3. Total number of M&G plc shares in issue as at 30 June 2026 was 2,413,425,551.

4. A live webcast of the Half Year 2026 Results presentation and Q&A will be hosted by Andrea Rossi (Group CEO) and Kathryn McLeland (Group CFO) on Thursday 3rd of September at 9:30 BST. Register to join at https://sparklive.lseg.com/MG/events/6332ab30-eb49-4e6d-8b92-4b7baaf58436/m-g-plc-half-year-financial-results-2026. The Results presentation will be available to download from 07:00 BST on our Results webpage Results & announcements - M&G plc.

Ex-dividend date 10 September 2026

Record date 11 September 2026

Payment of dividend 16 October 2026

M&G plc is a leading international savings and investments business, managing money for around 4.2i million retail clients and more than 1,000i Institutional clients in 38i offices worldwide. As at 30 June 2026, we had £387 billion of assets under management and administration. At M&G, we have over 175 years of experience navigating challenges and opportunities - whether that's managing investments, supporting saving, providing financial advice or offering retirement solutions - to help give people and businesses the confidence to put their money to work.

M&G plc, a company incorporated in the United Kingdom, is the ultimate parent company of The Prudential Assurance Company Limited (PAC). PAC is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.

This announcement 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 environment, strategy and objectives. Statements that are not historical facts, including statements about M&G's beliefs and expectations and including, without limitation, statements containing the words 'may', 'will', 'could', 'should', 'continue', 'aims', 'estimates', 'projects', 'believes', 'intends', 'expects', 'plans', 'seeks', 'outlook' and 'anticipates', and words of similar meaning, are forward-looking statements. These statements are based on plans, estimates and projections which are current as at the time they are made, and therefore persons reading this announcement are cautioned against placing undue reliance on forward-looking statements. By their nature, forward-looking statements involve inherent assumptions, risk and uncertainty, as they generally relate to future events and circumstances that may not be entirely within M&G's control. A number of factors could cause M&G's actual future financial condition or performance or other indicated results to differ materially from those indicated in any forward-looking statement. Such factors include, but are not limited to: changes in domestic and global political, economic and business conditions; market-related conditions and risk, including fluctuations in interest rates and exchange rates, the potential for a sustained low-interest rate environment, corporate liquidity risk and the future trading value of the shares of M&G; investment portfolio-related risks, such as the performance of financial markets generally; legal, regulatory and policy developments, such as, for example, new government initiatives and regulatory measures, including those addressing climate change and broader sustainability-related issues, and broader development of reporting standards; the impact of competition, economic uncertainty, inflation and deflation; the effect on M&G's business and results from, in particular, mortality and morbidity trends, longevity assumptions, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; the impact of internal projects and other strategic actions, such as transformation programmes, failing to meet their objectives; changes in environmental, social and geopolitical risks and incidents, pandemics and similar events beyond the Group's control; the Group's ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change and broader sustainability-related issues effectively; the impact of operational risks, including risk associated with third-party arrangements, reliance on third-party distribution channels and disruption to the availability, confidentiality or integrity of M&G's IT systems (or those of its suppliers); the impact of changes in capital, solvency standards, accounting standards or relevant regulatory frameworks, and tax and other legislation and regulations in the jurisdictions in which the Group operates; and the impact of legal and regulatory actions, investigations and disputes. These and other important factors may, for example, result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. Any forward-looking statements contained in this announcement speak only as of the date on which they are made. M&G expressly disclaims any obligation to update any of the forward-looking statements contained in this announcement or any other forward-looking statements it may make, whether as a result of future events, new information or otherwise except as required pursuant to the UK Prospectus Rules, the UK Listing Rules, the UK Disclosure and Transparency Rules, or other applicable laws and regulations. This report has been prepared for, and only for, the members of M&G, as a body, and no other persons. M&G, its Directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come, and any such responsibility or liability is expressly disclaimed. Nothing in this report should be construed as a profit forecast. The information contained in this announcement does not constitute an offer to sell or otherwise dispose of or an invitation or solicitation of any offer to purchase or subscribe for any securities in the Group.

i As at 31 December 2025

A glossary of terms used in this report was published as part of our 2025 Annual Report & Accounts announcement and is available at group.mandg.com/investors/results-and-announcements/annual-report

4

‌Management statement

During the first six months of 2026, we have continued to make great progress against our strategic priorities. Since 2023, when we launched our refreshed strategy, we have focused on building the foundations for long-term growth while maintaining our financial strength and simplifying the business. We are now delivering on growth with good net inflows from open business of £2.4 billion in the period, and the highest adjusted operating profit for the first half of the year since listing in 2019 of £435 million. Against a backdrop of on-going market volatility and geopolitical uncertainty, our Asset Management and Life businesses are continuing to work together to meet evolving customer and client needs. We are building scale in areas where we have distinctive capabilities, broadening access to our products and services, while maintaining focus on operational efficiency and financial resilience.

Last year we announced our strategic partnership with Daiichi, who are now our largest shareholder and as part of the next stage of our arrangement, Hitoshi Yamaguchi, Daiichi's Group Chief Human Resources Officer, will join our Board of Directors, bringing more than three decades of leadership experience, spanning international insurance and finance. The partnership is continuing to strengthen M&G's presence in Japan and across Asia and supports opportunities across both the Asset Management and Life businesses with Daiichi also recognising the benefits of our integrated business model. During the first half of the year the Group continued to benefit from demand linked to Daiichi mandates attracting inflows of £0.7 billion, giving a total of £1.1 billion since the start of the relationship.

The progress we are making across the Group reflects the strength of our customer and client franchise, the depth of our investment expertise and the continued relevance of our purpose: to give everyone real confidence to put their money to work.

Our Asset Management business continues to grow, with net inflows in the period from external asset management clients of £2.2 billion, a strong result despite on-going market volatility, with an equal contribution from Institutional and Wholesale clients. In Institutional, as well as continuing to grow internationally, we have seen a turnaround in UK flows delivering £0.8 billion of net inflows in the period. Our total Wholesale net inflows of £1.1 billion have benefitted from strong investment performance, particularly in Public Equities.

Asset Management's total assets under management increased by over £10 billion in the period, and have grown steadily by 17% over the last three years since we launched our growth strategic priority to £356 billion at 30 June 2026. We have improved the diversification of the Asset Management business with it becoming less reliant on the Life business and UK market. Over the same three year period, assets managed on behalf of external clients have increased by 29% to £189 billion at 30 June 2026, with our international business increasing even faster, by more than 40%, and now accounting for nearly 60% of total external assets.

Alongside this growth, we have maintained our focus on improving profitability, further reducing the Asset Management cost-to-income ratio to 73% in the period and we remain on track to reduce this further to 70% by the end of 2027.

The Life segment is now a core driver of M&G's capital-light growth with nearly all new business being written through the With-Profits Fund and we are continuing to innovate and broaden access to our retirement and savings propositions. In February we launched our With-Profits Bulk Purchase Annuity proposition (BPA Plus) with great success, attracting £0.6 billion inflows to the end of June and a further £1.1 billion of inflows since, already improving on last year's total BPA inflows. This product combines the security and certainty that a traditional BPA can provide with the opportunity for members to benefit from future investment outperformance. As well as the benefits to customers, BPA Plus represents an attractive source of capital-light growth for shareholders and supports future earnings generation by leveraging the strengths of both our Life and Asset Management capabilities. Scaling our BPA propositions increases our AUMA and also supports the growth of our Asset Management private markets business.

Our strategy for individual Life customers consists of two key elements; firstly to improve the distribution of our flagship PruFund proposition and secondly to broaden our product offering.

PruFund remains a core part of our customer offering, providing a smoothed investment solution designed to help customers navigate market volatility. In June we were pleased to make PruFund available to advisers on the Scottish Widows adviser digital platform. Now that we have the technology in place, we expect to launch on a second third-party platform later in the year. We have also recently announced an enhanced outsourcing arrangement to manage the operations of our own M&G platform, another key distribution channel for PruFund, which is intended to help improve service, resilience and scalability over time.

As part of broadening our product offering, last year we launched the Prudential Guaranteed Income Plan, a fixed-term annuity product which is also powered by the With-Profits Fund. This fully digital proposition guarantees income for a fixed term between 3 and 30 years and has generated over £100 million of inflows since launch, with an inaugural bonus of 0.45% declared in February. Expanding our proposition range in this way allows advisers to create tailored retirement income solutions for our customers to meet their evolving needs.

Management statement (continued)

In the first six months of the year we have delivered net inflows from open business of £2.4 billion, £2.2 billion of which are from external Asset Management clients. In Life, our BPA Plus proposition, launched in the period, generated inflows of £0.6 billion to the end of June, offsetting the outflows from the run off of legacy annuities in payment.

Adjusted operating profit before tax (AOP) grew to £435 million for the six months ended 30 June 2026, 15% higher than the same period in 2025, with a 24% increase in Asset Management AOP to £159 million and a 9% increase in the contribution from Life to £375 million. This increase, as we continue to grow the business, keeps us on track to meet our target of AOP annual growth of 5% or more on average over the three years 2025-2027.

In Asset Management, we have again increased revenue whilst remaining disciplined on cost and are pleased with the improvement in the cost-to-income ratio to 73%. In Life, an increase in AOP for both PruFund and Traditional with-profits business driven by increased opening Contractual Service Margin (CSM) following strong returns on the With-Profits Fund over 2025, was partially offset by a decrease in the contribution from annuities, following lower expected return on excess assets.

Operating change in Contractual Service Margin was positive although reduced at £54 million (30 June 2025: £65 million). The closing CSM of £7.0 billion (31 December 2025: £6.6 billion), up 6% benefitting from continuing strong returns in the With-Profits Fund, demonstrates a large and growing store of future value.

Our IFRS result was a loss after tax attributable to equity holders of £165 million (30 June 2025: £248 million profit) primarily due to significant losses from short-term fluctuations in investment returns heavily impacted by the UK Government's publication of the draft Commonhold and Leasehold Reform Bill in January 2026. This impacted both the valuation of insurance contract liabilities, following the resultant removal of assets from portfolios used to derive the discount rate applied in calculating the liabilities, and the valuation of ground rent assets leading to a pre-tax loss of £325 million.

Underlying capital generation reduced to £304 million (30 June 2025: £331 million) with an improved contribution from Life being more than offset by a lower result from Asset Management and Corporate Centre due to changes in capital requirements. Operating capital generation was £372 million (30 June 2025: £408 million) following the reduced underlying capital generation and a slightly reduced benefit from management actions in the period. As we announced in 2025, we are targeting cumulative operating capital generation (excluding new business strain) of £2.7 billion for the three years to 2027 and we are on track with £392 million delivered for the six months to 30 June 2026 and £1,320 million in the first 18 months of the duration of the target.

Total capital generation was £375 million (30 June 2025: £354 million) with market movements and tax benefits offsetting the strain from restructuring costs in the period, leading to a shareholder Solvency II coverage ratio of 247% (30 June 2025: 230%).

In line with our progressive dividend policy we are declaring an interim ordinary dividend of 6.8 pence per share (30 June 2025: 6.7 pence per share), payable on 16 October 2026.

‌Financial review

AUMA and net client flows

Assets under management and administration (AUMA) increased by £11.5 billion to £387.4 billion (31 December 2025: £375.9 billion) in the six months ended 30 June 2026 as a result of favourable market movements and net inflows from open business of £2.4 billion (30 June 2025: £2.1 billion).

Net flows from open business primarily includes flows from Asset Management, PruFund, Annuities and advice. These have increased compared to 30 June 2025 due to a return to net inflows in Life as we continue to win Bulk Purchase Annuity (BPA) business through our new BPA Plus proposition launched in the period.

The following table shows an analysis of AUMA and net client flows by segment:

Net client flows

Net flows from open business

For the

Net flows other

For the

Total net

client flows AUMAi

For the

1. £22.3 billion (£18.4 billion as at 30 June 2025, £20.9 billion as at 31 December 2025) of total AUMA relates to assets under advice.

2. Asset Management AUMA, does not include £166.6 billion of AUMA of Life that is managed internally (£155.6 billion as at 30 June 2025, £162.3 billion as at 31 December 2025).

Asset Management AUMA increased to £189.9 billion (31 December 2025: £182.9 billion) with net client inflows of £2.2 billion (30 June 2025: £2.6 billion) and positive market and other movements of £4.8 billion (30 June 2025: £6.4 billion).

For the year For the six months ended ended 31

30 June December 2026 2025 2025

£bn £bn £bn

Total AUMA for Asset Management, including AUMA managed on behalf of the Life segment, is £356.5 billion (31 December 2025: £345.2 billion).

Institutional Asset Management AUMA increased to £110.2 billion due primarily to net client inflows in the six months to 30 June 2026 of £1.1 billion (30 June 2025: £1.9 billion net inflows).

In UK Institutional Asset Management net inflows continued from the latter part of 2025 with £0.8 billion for the six months to 30 June 2026 (30 June 2025: £1.3 billion net outflows) through continued success in winning structured credit and fixed income mandates. International Institutional net inflows for the first six months were £0.3 billion compared to £3.2 billion for the same period in 2025, with 2025 benefitting from a single large Equity mandate win. Inflows in 2026 include £0.7 billion through our partnership with Daiichi and inflows into European Real Estate, partly offset by redemptions in South African Equities and European Fixed Income.

Our expertise in private assets remains a key component of our Institutional investment capability as a resilient, high-margin source of revenues. Private assets under management, including those managed on behalf of the Life segment, increased to £82.8 billion of AUMA as at 30 June 2026 (31 December 2025: £80.8 billion).

In Wholesale Asset Management, net inflows increased to £1.1 billion (30 June 2025: £0.7 billion) driven by continued net inflows, particularly in relation to our European and Asian equity funds. As of 30 June 2026, 53%, 53% and 78% of our Wholesale funds by AUMA ranked in the upper performance quartiles over one, three and five years respectively (31 December 2025: 67%, 56%, and 75% over one, three and five years), with over 50% of equity funds in the top quartile over both 3 and 5 years.

Wholesale AUMA increased £5.8 billion to £79.0 billion as at 30 June 2026 (31 December 2025: £73.2 billion), benefitting from market and other movements of £4.7 billion, due to improving equity markets.

Net client flows from open business, which primarily comprises PruFund, Annuities and advice, improved to £0.2 billion net inflows (30 June 2025: £0.5 billion net outflows) reflecting the BPA transactions which contributed £0.6 billion inflows, and a reduction in PruFund net outflows during the year.

PruFund, our insurance-based smoothing solution which offers a blend of public and private investments to clients, had net client outflows of £0.1 billion (30 June 2025: £0.6 billion net client outflows). The improvement in net outflows reflects an overall improvement in PruFund net flows seen through the latter part of 2025, dampened slightly in the period following heightened market volatility which can impact customer behaviour. PruFund flows include flows attracted through our internal platform business.

Annuities client flows of net nil (30 June 2025: £0.3 billion net client outflows) have improved as we continue to expand our corporate pension risk business. Inflows in 2026 of £0.6 billion (30 June 2025: £0.2 billion) relate to our first four BPA Plus transactions following the launch of this innovative new offering in the period. These are offset by outflows of £0.6 billion (30 June 2025: £0.5 billion) primarily from legacy annuities in payment as they continue to run-off.

Net client flows from open business were offset by the traditional with-profits business experiencing expected net outflows of £2.5 billion (30 June 2025: £2.3 billion), outflows from third-party funds on our internal adviser platform, and expected run-off from our other small closed books of business. Total net client flows from the Life business were £4.0 billion outflows (30 June 2025: £5.1 billion).

Total Life AUMA increased £4.6 billion to £196.8 billion (31 December 2025: £192.2 billion) with the net client outflows being more than offset by positive market and other movements of £8.6 billion (30 June 2025: £4.8 billion), driven by improving equity markets.

Earnings

Our key metrics to describe our earnings are: Adjusted operating profit before tax (AOP), which demonstrates our longer-term performance to shareholders, excluding the effect of short-term market movements and non-recurring items; Operating change in Contractual Service Margin (CSM), which supplements AOP and includes the impact of new business and management actions not included in AOP; and IFRS result after tax which demonstrates our financial performance to shareholders on an IFRS basis.

Adjusted operating profit before tax increased to £435 million for the six months to 30 June 2026 (30 June 2025: £378 million), reflecting improved results from both Asset Management and Life.

The following table shows an analysis of adjusted operating profit before tax by segment:

Asset Management adjusted operating profit before tax increased to £159 million (30 June 2025: £128 million) following an increase of

£22 million in fee-related earningsii as we continued to grow revenue whilst maintaining cost discipline.

Asset Management revenue increased 10% to £565 million for the six months ended 30 June 2026 (30 June 2025: £514 million) with a 7% rise in operating costs to £417 million (30 June 2025: £388 million). The increased revenue reflects our ongoing focus on growth and includes income earned by P Capital Partners (PCP), which we acquired in June 2025. Our ongoing emphasis on cost discipline has allowed us to continue to invest for the long-term in the business, as we added distribution and investment capabilities, whilst further improving our operating leverage. The cost-to-income ratio for the Asset Management business reduced to 73% (31 December 2025: 75%).

Revenue earned by Institutional Asset Management was £200 million (30 June 2025: £184 millioniii) including PCP revenue, and in Wholesale Asset Management revenue increased to £209 million (30 June 2025: £176 millioniii). The increase in Wholesale revenue reflects fees earned on higher average AUMA, in particular in equity funds which have continued to see inflows and positive market movements. Internal revenue in respect of assets managed on behalf of Life was £156 million (30 June 2025: £154 million).

The average revenue margin for Asset Management remained broadly flat at 32bps for the six months ended 30 June 2026

(31 December 2025: 33bps). In both Institutional and Wholesale the average fee margin was also largely unchanged with Institutional at 37bps (31 December 2025: 38bps) and Wholesale at 55bps (31 December 2025: 55bps).

Performance fees includes carried interest which is lower in the six months ended 30 June 2026 due to a fewer number of events that crystallised the recognition of the income. Investment income and non-controlling interests have significantly improved from the same period in 2025 at £7 million net income (30 June 2025: £5 million net loss) with a significant increase in investment income to £16 million (30 June 2025: £3 million). Investment income relates to returns on seed investments, units held to hedge management incentive schemes, interest income on cash balances and any foreign exchange revaluation impacts. The increase reflects increased gains on foreign exchange revaluations following the USD strengthening against GBP in the period and improvements in hedging and seed investments.

1. Performance fees are net of the corresponding performance-related remuneration payable under Asset Management employee incentive schemes.

2. Fee-related earnings are revenue less costs.

3. 2025 figures differ to those previously presented as now reflect the amounts excluding internal revenue.

Adjusted operating profit before tax from our Life business increased £31 million to £375 million for the six months ended 30 June 2026 (30 June 2025: £344 million). The improved contribution from with-profits business reflecting an increase in Contractual Service Margin (CSM) release was partly offset by a lower contribution from annuities.

With-profits: PruFund

The table below shows a further analysis of the adjusted operating profit before tax from PruFund:

The CSM for PruFund is primarily based on the expected value of future shareholder transfers. The CSM at the start of 2026 is higher than the start of 2025, following the higher returns on the assets held in the With-Profits Fund over 2025. There has been a slight decrease in CSM amortisation rate to 11.0% (2025: 11.1%), mainly reflecting a small change in the persistency assumptions in 2025 related to the Retirement Account product. The impact of the higher opening CSM more than offsets the impact of the lower amortisation rate and results in an increase in the amount of CSM released to adjusted operating profit to £129 million (30 June 2025:

£110 million).

1. Excess assets net of financial liabilities.

The expected return on excess assets decreased by £2 million to £3 million (30 June 2025: £5 million). The expected rate of return is set at the start of the reporting period and has fallen to 5.1% compared to 6.2% in 2025 due to a combination of a change in methodology to calculate the rate which better reflects the duration of the business and the movement in the yield curve over 2025. The opening value of excess assets in the With-Profits Fund has increased following a reduction in short-term yields over 2025 which has resulted in an increase in surplus assets being allocated to PruFund. The impact of the lower expected rate of return more than offsets the increase in surplus assets resulting in a decrease in expected return on excess assets.

With-profits: traditional

The table below shows a further analysis of the adjusted operating profit before tax from traditional with-profits business:

As outlined above for PruFund, the CSM for traditional with-profits at the start of 2026 is higher than at the start of 2025. The CSM amortisation rate for traditional with-profits has increased to 13.5% (2025: 13.1%) reflecting a mix of run-off and a change in persistency assumptions in 2025 for certain personal pensions business. The amortisation rate of the traditional with-profits business is greater than PruFund as this business is more mature and is running off faster. The impact of the higher opening CSM and increased amortisation rate results in the amount of CSM released to adjusted operating profit increasing by £14 million to

Traditional adjusted

operating profit before tax 137 120 258

£121 million (30 June 2025: £107 million).

1. Excess assets net of financial liabilities.

The expected return on the shareholders' share of excess assets in traditional with-profits decreased by £2 million to £13 million (30 June 2025: £15 million) for the same reasons described above for PruFund.

The improvement in Other to a profit of £3 million (30 June 2025: £2 million loss) primarily relates to expense overruns on group pensions new business in 2025 which are not repeated in 2026.

Annuities

The table below shows a further analysis of the adjusted operating profit before tax from annuities:

For the year For the six months ended ended 31

30 June December 2026 2025 2025

£m £m £m

Annuities adjusted operating profit before tax has decreased by £8 million to £105 million (30 June 2025: £113 million). The recurring sources of earnings from the annuity book are primarily the returns on excess assets over and above the IFRS 17 insurance liabilities based on long-term expected investment returns and the release

CSM release to adjusted

operating profit 58 55 121

Expected return on excess

of the CSM.

The release of the CSM to adjusted operating profit for annuities was £58 million in the six months ended 30 June 2026 compared

Other (13) (13) 19

Annuities adjusted

operating profit before tax 105 113 283

business, interest accreted and assumption changes in the period. The release of CSM represents 7.8% of the 2026 CSM before amortisation (2025: 7.8%). The release increased in 2026 as a result of higher opening CSM following longevity assumption changes made in the second half of 2025.

The expected return on excess assets has decreased by £10 million to £51 million (30 June 2025: £61 million) as a result of a reduction in the expected rate of return and in the value of the excess assets. The expected rate of return is set at the start of the reporting period and reduced from 5.2% for 2025 to 4.5% for 2026, due to a combination of a change in methodology to calculate the rate which better reflects the duration of the business, and the movement in the yield curve over 2025. The rise in longer-term risk-free rates has driven the reduction in excess assets.

Other losses were £13 million (30 June 2025: £13 million) and include experience variances from higher than expected expenses. In 2026 this includes £3 million onerous contract losses (30 June 2025: nil) as well as the impact from initial expenses on BPA Plus contracts written in the period along with other expense variances.

The credit quality of fixed income assets in the annuity portfolio remained robust over the first half of 2026. Approximately 97% of the debt securities held by the shareholder annuity portfolio are investment grade and 74% are A or above. In addition, 81% of the shareholder annuity portfolio is held in debt securities categorised either as Risk Free or Secured (including cash) reflecting a prudent and high-quality asset mix. Credit rating migrations during the year resulted in a low level of downgrade experience (defined as movements in notching across all credit ratings) with less than 1.6% of bonds in the shareholder annuity portfolio subject to a downgrade, this is more than offset by upgrades across 2.2% of the portfolio.

Other Life

For the year For the six months ended ended 31

30 June December 2026 2025 2025

£m £m £m

Other Life increased by £5 million to £4 million profit (30 June 2025: £1 million loss) mainly due to reduced losses from Platform and advice which was partially offset by a small reduction in profit on European business to £6 million (30 June 2025: £8 million).

Platform and advice losses reduced due to an improved result from our advice businesses as a result of both higher revenue and lower costs.

The loss in Corporate Centre has increased by £5 million to £99 million for the six months ended 30 June 2026 (30 June 2025: £94 million). This reflects a reduction in interest income and a slight increase in underlying head office expenses to £47 million (30 June 2025: £45 million).

The following table shows a breakdown of the operating change in CSM:

Operating change in CSM reduced to £54 million in the six months ended 30 June 2026 (30 June 2025: £65 million). The main elements of the operating change in CSM are expected real-world return for with-profits business, new business contribution and assumption changes and variances. These are then offset by the release of the CSM to adjusted operating profit, which increased overall in the six months to 30 June 2026 compared to the same period in 2025.

For with-profits expected real-world return, the expected rate of return is determined at the start of the year and is applied to the components of the Variable Feei. The Variable Fee increased in the year and the expected rate of return decreased to 7.2% for 2026 (2025: 7.8%), following a change in methodology to better reflect the average duration of the business. New business contribution is primarily based on the projected future shareholder transfer on new inflows valued at the opening risk-free rate.

For annuities, interest accreted on the CSM is based on the opening CSM including new business, and assumption changes and variances. The interest rate is based on the forward curve 'locked in' at IFRS 17 transition date (1 January 2022) and has slightly increased to 2.3% (2025: 2.1%).

Operating change in CSM for PruFund reduced to £87 million in the six months ended 30 June 2026 (30 June 2025: £97 million). PruFund new business contribution to the CSM increased to £62 million (30 June 2025: £45 million). The rise is predominantly due to an increase in the projected future shareholder transfers driven by a rise in longer-term risk-free rates over 2025, along with the impact of certain new business being written on a charges less expenses (100:0) model from 1 April 2026.

The expected real-world return for PruFund business was stable at £156 million (30 June 2025: £155 million) as the increase in Variable Fee offset the impact of the lower expected rate of return, whilst assumption changes and variances resulted in a loss of £2 million (30 June 2025: £7 million gain), with the six months ended 30 June 2025 benefitting from model improvements.

With-profits: traditional operating change in CSM also reduced in the period to negative £18 million (30 June 2025: £17 million positive), including the impact of a reduction in the expected real-world return to £122 million (30 June 2025: £135 million) following the decrease in the expected return rate as set out above.

The loss of £19 million from assumption changes and variances includes the impact from a reduction in the value of future shareholder transfers due to a change in future bonus rates for certain personal pensions business. The loss for the six months ended 30 June 2025 of £13 million primarily related to improvements in prospective modelling.

Annuities operating change in CSM was negative £26 million for the six months ended 30 June 2026 (30 June 2025: £49 million negative) with gains from assumption changes and variances in the six months ended 30 June 2026 of £14 million mainly relating to favourable longevity experience. In the six months to 30 June 2025 the £18 million loss included the impact of updates to expense assumptions.

The contribution from new business to the operating change in CSM for the six months ended 30 June 2026 only comprises internal vestings on existing business whereas the six months ended 30 June 2025 included the contribution from BPA transactions completed in the period.

1. The Variable Fee is the amount of the Group's share of the fair value of the underlying items less fulfilment cash flows that do not vary based on the returns on underlying items. Further information is provided in Note 1.5 Accounting policies of the 2025 Annual Report and Accounts.

The positive operating change in CSM from other business of £11 million for the six months ended 30 June 2026 (30 June 2025: nil) included £14 million positive assumption changes and variances which primarily relate to the release of a provision held in respect of guaranteed minimum pension (GMP) equalisation in the period.

The following table shows a reconciliation of adjusted operating profit before tax to the IFRS result after tax:

1. Restructuring and other costs excluded from adjusted operating profit relate to transformation costs allocated to the shareholder. These differ to restructuring costs included in the analysis of administrative and other expenses in Note 6 which include costs allocated to the With-Profits Fund.

The IFRS result after tax attributable to equity holders for the six months ended 30 June 2026 is a loss of £165 million (30 June 2025:

£248 million profit). Adjusted operating profit before tax has been offset by losses on non-operating items, predominantly from short-term fluctuations in investment returns.

Losses from short-term fluctuations in investment returns increased significantly in the six months to 30 June 2026 to £551 million

(30 June 2025: £12 million) mainly due to a £325 million valuation loss following the publication of the UK Government's proposed draft Commonhold and Leasehold Reform Bill in January 2026. This impacted both the valuation of insurance contract liabilities, following the resultant removal of assets from portfolios used to derive the discount rate applied in calculating the liabilities, and the valuation of ground rent assets. The remaining losses include a loss of £61 million (30 June 2025: £23 million loss) on interest rate swaps purchased to protect PAC's Solvency II capital position against falls in interest rates, driven by rises in yields of longer duration in the six months to 30 June 2026, which were larger than those experienced over 2025. There was also a loss of £57 million (30 June 2025: £50 million loss) on the hedging instruments held to protect the Solvency II capital position from falling equity markets, due to rising equity markets, and a £5 million foreign exchange loss (30 June 2025: £37 million gain) on the USD denominated subordinated loan note due to strengthening of the currency against GBP over the six months to 30 June 2026.

Mismatches arising on application of IFRS 17 primarily relates to a mismatch which occurs in relation to non-profit business in the With-Profits Fund generating a £38 million loss in the six months to 30 June 2026 (30 June 2025: £1 million gain). This mismatch increased in the six months to 30 June 2026 due to a reduction in the fair value of non-profit business compared to the IFRS 17 value of the liabilities. Over the expected term of the contracts this mismatch is expected to slowly unwind as the profit on non-profit business in the With-Profits Fund is recognised.

Amortisation and impairment of intangible assets acquired in business combinations of £13 million (30 June 2025: £11 million) has increased slightly due to an increase in acquisition related intangible assets in 2025.

In the six months ended 30 June 2026, restructuring costs and other of £60 million (30 June 2025: £37 million) includes £20 million

(30 June 2025: £11 million) in relation to actions taken to reduce our cost base and £24 million (30 June 2025: £15 million) of investment to simplify our operating model and develop capabilities across the business to support scalable growth. Restructuring costs also includes £14 million (30 June 2025: £6 million) in relation to the Group's Financial Crime Enhancement Programme described on page 17.

The equity holders' tax credit for the six months ended 30 June 2026 is £48 million (30 June 2025: £85 million charge) representing an effective tax rate of 22.5% (30 June 2025: 25.5%). Excluding non-recurring items, the equity holders' effective tax rate is 26.7% (30 June 2025: 26.1%). The equity holders' effective tax rate represents a tax credit on the equity holders' pre-tax loss. This rate diverges from the anticipated tax benefit at the UK statutory effective rate of 25.0% (2025: 25.0%), mainly due to the adverse effects of non-deductible expenses and differences in the taxation of the life insurance business and partly offset by the beneficial effect of utilisation and recognition of tax losses on which no deferred tax was previously recognised.

Capital and liquidity

Operating capital generation of £372 million (30 June 2025: £408 million) remained resilient despite lower contributions from underlying capital generation of £304 million (30 June 2025: £331 million) and other operating capital generation of £68 million (30 June 2025: £77 million). Total capital generation increased to £375 million for the six months ended 30 June 2026 (30 June 2025: £354 million), as the benefit from tax and market movements offset the impact from restructuring and other movements.

The following table shows an analysis of total capital generation:

Underlying capital generation decreased in the six months ended 30 June 2026 to £304 million (30 June 2025: £331 million) reflecting reductions in Asset Management and Corporate Centre, partly offset by an improvement in Life.

For the year For the six months ended ended 31

Asset Management underlying capital generation decreased to

£129 million (30 June 2025: £136 million) as the benefit from improved adjusted operating profit was more than offset by changes in capital requirements for market and credit risk. The change in capital is impacted by movements in the seeding portfolio which created an increase in required capital in 2026 compared to a release of capital in the first six months of 2025. The 2025 result also benefited from a non-recurring release of capital following the recalibration of foreign exchange exposures.

Life underlying capital generation improved to £294 million

(30 June 2025: £289 million) with improvements in with-profits and other partly offset by a reduction in annuities. Underlying capital generation from PruFund increased to £126 million (30 June 2025:

£115 million). In-force business generated £123 million (30 June 2025: £126 million) as the impact of reductions in the expected real-world return from 7.8% pa in 2025 to 7.2% pa in 2026 was partially offset by a rise in the present value of future shareholder transfers. PruFund new business impact has increased,

Underlying capital

generation 304 331 529

contributing £3 million of underlying capital (30 June 2025: £11 million strain), reflecting the positive impact of certain new business being written on a charges less expenses (100:0) model from 1 April 2026.

Traditional with-profits business generated underlying capital of £83 million, an increase on the prior period (30 June 2025: £80 million). The movement in the period primarily relates to expense overruns on group pensions business not repeated in 2026 which more than offsets the reduction in expected real-world return as noted for PruFund.

Annuities underlying capital generation was £84 million (30 June 2025: £99 million). In-force annuities continued to benefit from expected returns on surplus assets and release of credit reserves; however, the benefit from both was lower in the period compared to 2025 with the expected return benefit being lower due to a reduction in the expected return rate. New business resulted in a capital strain of £20 million (30 June 2025: £13 million) reflecting the writing of BPA Plus transactions during the period.

Corporate Centre negative contribution has increased due mainly to the impact from the release of capital held by our Treasury function in 2025 which did not repeat, with a small impact from increased head office costs.

Operating capital generation decreased to £372 million in the six months ended 30 June 2026 ( 30 June 2025: £408 million) with a reduction in other operating capital generation in addition to the lower underlying capital generation.

For the year For the six months ended ended 31

30 June December 2026 2025 2025

£m £m £m

Other operating capital generation contributed £68 million (2025:

£77 million) with positive contributions from management actions of £64 million and model developments of £4 million.

There were no material assumption changes in the six months ended 30 June 2026 (30 June 2025: £30 million strain), compared

Underlying capital

generation 68 77 236

Operating capital

generation 372 408 765

with the prior period which included updates to expense assumptions.

Management actions and other items contributed £64 million (30 June 2025: £113 million). The principal contributor was a benefit from equity hedge maturities and purchases which was partially offset by a reduction in the present value of future shareholder transfers due to a change in future bonus rates for certain personal pensions business.

Non-market experience variances were broadly neutral at £2 million strain (30 June 2025: £52 million strain). Positive contributions from the release of group pensions equalisation reserve and other reserve releases were largely offset by adverse expense variances and other smaller experience items.

Total capital generation was £375 million for the six months ended 30 June 2026 (30 June 2025: £354 million).

Market movements over the six months to 30 June 2026 have resulted in a gain of £24 million (30 June 2025: £60 million loss). The main driver of market movements is a gain of £261 million (30 June 2025: £94 million loss) arising from an increase in the present value of shareholder transfers less equity hedges, reflecting stronger than expected actual returns achieved on the With-Profits Fund over the six months to 30 June 2026. This is largely offset by a pre-tax loss of £209 million in relation to the impact from revaluation of ground rent assets, which have been removed from the matching adjustment portfolio, following the UK Government's publication of the draft Commonhold and Leasehold Reform Bill in January 2026. Additionally there has been a loss on interest rate swaps, designed to protect the Solvency II capital position in a falling interest rate environment, of £61 million (30 June 2025: £23 million loss). These losses are partly offset by the movement in Solvency Capital Requirements and risk margin net of Transitional Measures on Technical Provisions (TMTP) attributable to market movements which is a benefit of £49 million compared to £64 million in the six months ended 30 June 2025 driven by a release of annuity capital due to the material rise in yields reducing longevity risk capital.

Restructuring costs and other movements has increased to a loss of £55 million (30 June 2025: £36 million) in line with the increase in IFRS costs.

Capital generation with respect to tax has reduced to £34 million over the six months to 30 June 2026 (30 June 2025: £42 million). Benefits from current tax credits of £37 million (30 June 2025: £29 million) and an increase in net deferred tax assets of £4 million (30 June 2025: £15 million net reduction) were partly offset by a £7 million reduction in the loss absorbing capacity of deferred tax (30 June 2025: £28 million increase).

Shareholder Solvency II surplus and ratio

247%

£8.4bn

230%

£8.3bn

242%

£8.5bn

£3.4bn

£3.6bn

£3.5bn

30 June 2026

30 June 2025

• Own funds ■ SCR

31 December 2025

The Group's shareholder Solvency II coverage ratio has increased to 247% (31 December 2025: 242%). Shareholder Solvency II surplus remained at £5.0 billion as at 30 June 2026 (31 December 2025: £5.0 billion), with a reduction in the SCR offsetting a decrease in eligible own funds. Eligible own funds includes Present Value of future Shareholder Transfers (PVST) of £4.8 billion

(31 December 2025: £4.6 billion). The stable surplus reflects the total capital generation of £375 million offset by the payment of dividends to shareholders and the purchase of shares for the Employee Benefit Trust. The reduction in SCR follows an increased level of equity hedging and the rise in yields.

Our With-Profits Fund continues to have a substantial Solvency II surplus and a coverage ratio of 375% (31 December 2025: 342%). The increase in surplus and ratio reflects expected surplus from in-force business and positive management actions.

The regulatory Solvency II coverage ratio of the Group as at 30 June 2026 is 181% (31 December 2025: 178%). This view of solvency combines the shareholder position and the With-Profits Fund, but excludes all surplus within the With-Profits Fund.

For the year For the six months ended ended 31

30 June December

Restated Restated

2026 2025 2025

£m £m £m

Solvency II value of

We have updated the methodology for our leverage ratio which is now defined as the Solvency II value of subordinated debt as a percentage of the shareholder view of M&G plc's Solvency II available own funds. Previously the numerator was the nominal value of the debt which was inconsistent with how the debt was valued within the Solvency II own funds measure. Comparatives have been restated on the new basis.

For the year For the six months ended ended 31

30 June December 2026 2025 2025

£m £m £m

The following table shows the movement in cash and liquid assets held by the Group's holding companies during the period:

The cash and liquid assets held by the Group's holding companies of £649 million at 30 June 2026 has reduced since the start of the year. Cash remittances from subsidiaries continue to reflect the underlying strength of their capital position and are £433 million in

Opening cash and liquid assets at the beginning of

the period 727 730 730

Cash remittances from

subsidiaries 433 432 746

Corporate costs (70) (70) (135)

Interest paid on core

structural borrowings (83) (83) (166)

Cash dividends paid to

equity holders (328) (321) (482)

Shares purchased by

employee benefit trust (71) (15) (46)

Acquisition of and capital

injections into subsidiaries - (1) (1)

Interest incomei 11 15 27

Other 30 28 54

Closing cash and liquid assets at the end of the

periodi 649 715 727

the six months to 30 June 2026 (30 June 2025: £432 million).

The interest paid on the structural borrowings remains at £83 million (30 June 2025: £83 million) while the slightly reduced average cash balance attracted lower interest income of £11 million (30 June 2025: £15 million).

Cash dividends paid to equity holders increased to £328 million (30 June 2025: £321 million) reflecting the higher dividend per share declared in March 2026.

Further shares were purchased by the employee benefit trust in the period totalling £71 million (30 June 2025: £15 million) as part of share plan award commitments. Other movements in cash and liquid assets held by the holding companies represent the payments that arise in the normal course of business, including Group tax relief of £28 million (30 June 2025: £18 million).

i Closing cash and liquid assets at 30 June 2026 included a £589 million (£660 million as at 30 June 2025, £673 million as at 31 December 2025) intercompany loan asset with Prudential Capital plc, which acts as the Group's treasury function. Interest income is in relation to these loans.

‌Risk management statement

The principal risks we are currently facing and to which we will continue to be exposed remain broadly unchanged from those detailed in the 2025 Annual Report and Accounts, which are: business environment and market forces; people; sustainability and ESG; financial (investment, credit, market, corporate liquidity and insurance); operational (including resilience, third-party suppliers, change and technology); regulatory; reputational; and conduct risks.

The following is highlighted as notable in relation to our principal risks:

• External macroeconomic and geopolitical developments as well as domestic factors continue to weigh on market conditions and financial risks. Heightened tensions in the Middle East have driven increased market volatility, including for oil and gas prices. The latter could place upward pressure on inflation, further weighing on economic growth, with potential implications for market conditions and interest rates. While broader market and economic contagion risks remain, the Group's strong solvency position provides resilience against adverse market conditions and continued uncertainty. Within the UK and European markets, there are ongoing fiscal and legislative risks, including potential changes to tax legislation and interpretation.

• With respect to technology and artificial intelligence, there is a range of emerging risks driven by the fast pace of technological advancement, including AI-enhanced malicious cyber-attacks, AI-assisted disinformation, technology resilience risks, and the opportunity costs of failing to optimise new technology to drive better outcomes for our clients and operational efficiency. We actively monitor the external threat landscape, with incidents continuing to affect organisations across multiple sectors alongside reviewing and upgrading controls and oversight for new technology deployment.

• The Group continues to focus on operational resilience, including cyber security, technology resilience and third-party service dependencies, against the backdrop of an evolving external threat environment.

• The rigorous regulatory landscape is continuing to evolve and we remain focused on adapting to meet the expectations of our regulators. This includes our dedicated Financial Crime Enhancement Programme which is continuing to strengthen and mature our financial crime framework, processes and controls, as well as implementing an enhanced target operating model.

• Management continues to enhance the effectiveness and maturity of the risk and control environment across M&G plc, with particular focus on third-party, data, model and sustainability risk management, reflecting evolving business, regulatory and stakeholder expectations.

• An updated version of the UK Corporate Governance Code (the Code) was published in January 2024. The most significant changes relate to internal controls (Provision 29), and these apply to reporting years starting on or after 1 January 2026. Management continues to progress activities to prepare for Provision 29, including the implementation of changes to existing processes and procedures. A dry run of the Provision 29 assessment process was recently undertaken to test the assessment methodology, governance arrangements and supporting evidence framework. The results have informed further enhancements to the approach ahead of formal reporting.

  ‌Statement of Directors' responsibilities

  The Directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the interim management report includes a true and fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

• an indication of important events that have occurred during the first six months and their impact on the condensed consolidated interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

• material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

  The maintenance and integrity of the M&G plc website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that might have occurred to the condensed consolidated interim financial statements since they were initially presented on the website.

  The Directors of M&G plc are listed in the M&G plc annual report for 31 December 2025. A list of current Directors is maintained on the M&G plc website: group.mandg.com.

  By order of the board:

  Andrea Rossi Kathryn McLeland

  Group Chief Executive Officer Chief Financial Officer

  2 September 2026 2 September 2026

  ‌Independent review report to M&G plc

  Report on the condensed consolidated interim financial statements Our conclusion

  We have reviewed M&G plc's condensed consolidated interim financial statements (the "interim financial statements") in the Interim financial report of M&G plc for the six month period ended 30 June 2026 (the "period").

  Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

  The interim financial statements comprise:

• the condensed consolidated statement of financial position as at 30 June 2026;

• the condensed consolidated income statement and condensed consolidated statement of comprehensive income for the period then ended;

• the condensed consolidated statement of cash flows for the period then ended;

• the condensed consolidated statement of changes in equity for the period then ended; and

• the explanatory notes to the interim financial statements.

The interim financial statements included in the Interim financial report of M&G plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We have read the other information contained in the Interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the Group to cease to continue as a going concern.

The Interim financial report, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim financial report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Interim financial report, including the interim financial statements, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Our responsibility is to express a conclusion on the interim financial statements in the Interim financial report based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.

This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

PricewaterhouseCoopers LLP Chartered Accountants London

2 September 2026

‌Interim financial statements

Condensed consolidated income statement (unaudited)

1. Other investment return consists of dividend income of £1,042m (30 June 2025: £1,031m, 31 December 2025: £1,818m), net gains on financial assets measured at FVTPL of £5,200m (30 June 2025: £2,115m, 31 December 2025: £10,035m), rental income from investment properties of £447m (30 June 2025: £454m,

   31 December 2025: £912m), net losses on investment properties of £28m (30 June 2025: £452m net gains, 31 December 2025: £280m net gains) and foreign exchange losses of £39m (30 June 2025: £337m, 31 December 2025: £197m).

2. Profit before tax comprises the pre-tax result attributable to equity holders and an amount equal and opposite to the tax charge attributable to policyholders' returns. This is the formal measure of profit or loss before tax under IFRS, but it is not the result attributable to equity holders. This is principally because the corporate taxes of the Group include taxes borne by policyholders. These amounts are required to be included in the tax charge of the Company under IFRS. The tax charge attributable to policyholders' returns is removed from the Group's total profit before tax in arriving at the Group's (loss)/profit before tax attributable to equity holders. As the net of tax profits attributable to policyholders is zero, the Group's pre-tax profit attributable to policyholders is an amount equal and opposite to the tax charge attributable to policyholders included in the total tax charge.

Condensed consolidated statement of comprehensive income (unaudited)

1. Of the exchange movements arising on foreign operations, £2m loss is attributable to equity holders of M&G plc (six months ended 30 June 2025: £3m gain, year ended 31 December 2025: £14m gain) and £1m loss is attributable to non-controlling interests (six months ended 30 June 2025: £1m loss, year ended 31 December 2025: £2m gain).

Condensed consolidated statement of financial position (unaudited)

Condensed consolidated statement of changes in equity (unaudited)

capital premium trusts shares earnings reserves

Share

Share benefit Treasury Retained

Shares Total equity

held by attributable

employee

Other

holders of controlling M&G plc interests

to equity Non-

Total equity

Condensed consolidated statement of changes in equity (unaudited) (continued)

Condensed consolidated statement of cash flows (unaudited)

For the six months ended 30 June

Restatedi

For the year ended 31 December

in profit before tax:

1. The comparative amount of £13m for Acquisition of additional interests in subsidiary for the six months ended 30 June 2025 has been re-presented from Cash flows from investing activities to Cash flows from financing activities, consistent with 31 December 2025.

2. Tax paid for the six months ended 30 June 2026 includes £177m (30 June 2025: £91m, year ended 31 December 2025: £338m) paid on profit taxable at policyholder rather than shareholder rates.

3. Cash flows in respect of other borrowings of the With-Profits Fund, which principally relate to consolidated investment funds, are included within cash flows from operating activities.

4. In the year ended 31 December 2025 net cash paid on the acquisition of subsidiaries, joint ventures and associates was £50m (30 June 2025: £50m) net of £17m cash acquired (30 June 2025: £17m), and £69m (30 June 2025: nil) of cash paid related to the acquisition of subsidiaries, joint ventures and associates held by the With-Profits Fund, net of nil cash acquired. No such acquisitions occurred in the six months ended 30 June 2026. The cash outflow in the six months ended 30 June 2026 included a £27m deferred acquisition payment in respect of P Capital Partners, which was acquired on 3 June 2025.

5. Investment in/Divestment of subsidiaries by consolidated private equity vehicles represents the amount received or paid in relation to the sale or purchase of underlying investee companies held by the Group's consolidated private equity vehicles.

6. Interest paid on subordinated liabilities.

   1. Basis of preparation and material accounting policies
      1. Basis of preparation

         The condensed consolidated financial statements for the six months ended 30 June 2026 comprise the condensed consolidated financial statements of M&G plc ('the Company') and its subsidiaries (together referred to as 'the Group'). The condensed consolidated financial statements are unaudited but have been reviewed by our auditors, PricewaterhouseCoopers LLP.

         The condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting (IAS 34), as adopted by the United Kingdom, and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. The accounting policies and the key sources of estimation uncertainty applied in the condensed consolidated financial statements are consistent with those that applied in the annual 2025 consolidated financial statements, except for the new standards, interpretations and amendments that became effective in the current period, as stated in Note 1.2 below.

         The condensed consolidated financial statements are stated in million pounds sterling, the Group's presentation currency.

         The condensed consolidated financial statements do not include all the information and disclosures required in the Group's annual consolidated financial statements and do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The Group's 2025 Annual Report and Accounts for the year ended 31 December 2025 was delivered to the Registrar of Companies. The report of the auditors PricewaterhouseCoopers LLP on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006.

         Going concern

         The Directors have a reasonable expectation that the Group as a whole has adequate resources to continue in operational existence for the foreseeable future and for a period of at least 12 months from the date of approval of the condensed consolidated financial statements.

         To satisfy themselves of the appropriateness of the use of the going concern assumption in relation to the condensed consolidated financial statements, the Directors have considered the liquidity projections of the Group, including the impact of applying specific liquidity stresses. The Directors also considered the ability of the Group to access external funding sources and the management actions that could be used to manage liquidity.

         In addition, the Directors also gave particular attention to the solvency projections of the Group under a base scenario and its sensitivity to various individual economic stresses and tested the resilience of the balance sheet to adverse scenarios using reverse stress testing.

         The impact of the following individual stresses on solvency were considered as part of the assessment:

         • 20% fall in equity prices;

         • 20% fall in property prices;

         • (50bps) parallel shift in nominal yields;

         • 20% of the credit portfolio downgrading by one full letter; and

         - +100bps spread widening (A-rated assets).

         The results of the assessment demonstrated the ability of the Group to meet all obligations, including payments to shareholders and debt holders, and future business requirements for the foreseeable future. In addition, the assessment demonstrated that the Group was able to remain above its regulatory solvency requirements in a stressed scenario.

         For this reason, the Directors continue to adopt the going concern basis in preparing the condensed consolidated financial statements.

         Presentation of risk and capital management disclosures

         We have provided additional disclosures relating to the nature and extent of certain financial risks and capital management in the Supplementary Information section of this report.

         1 Basis of preparation and material accounting policies (continued)
      2. New accounting pronouncements

         1. New accounting pronouncements adopted by the Group

            The Group has adopted the following amendments to standards which became effective from 1 January 2026:

            • Amendments to the classification and measurement of financial instruments (Amendments to IFRS 9 and IFRS 7), issued in May 2024 and effective from 1 January 2026; and

            • Annual improvements to IFRS accounting standards - Volume 11, issued in July 2024 and effective from 1 January 2026. The above amendments do not have a material effect on these condensed consolidated financial statements.

         2. New accounting pronouncements not yet effective

            The following standards have been issued which are effective for periods beginning on or after 1 January 2027:

            IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18) - Issued in April 2024 (endorsed by the UK Endorsement Board) and effective from 1 January 2027

            IFRS 18 will replace IAS 1 Presentation of Financial Statements and introduces new requirements around:

            • categories and subtotals to be used in the statement of profit or loss;

            • specific disclosures for management-defined performance measures (MPMs); and

            • location, aggregation and disaggregation of financial information.

              IFRS 18 will require an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. Entities will also be required to present subtotals and totals for 'operating profit or loss', 'profit or loss before financing and income taxes' and 'profit or loss'.

              IFRS 18 introduces the concept of MPMs which are metrics defined from the statement of profit or loss and are used to communicate management's views on financial performance externally. IFRS 18 requires disclosure of information about all of an entity's MPMs within a single note to the financial statements and requires further disclosures on how the measure is calculated and a reconciliation to the most comparable subtotal.

              IFRS 18 also provides guidance on the location of information in the primary financial statements and the notes. It also requires aggregation and disaggregation of information to be performed with reference to similar and dissimilar characteristics.

              The adoption of the standard will have a significant impact on how the Group's income statement is presented and may potentially impact disclosures on our alternative performance measures and the accounting measurement choice for certain investments. The expectation is that adjusted operating profit before tax will be an MPM. The Group has mobilised a cross-functional project to implement the requirements of IFRS 18 and is making good progress.

              Other

              The following new standards and amendments effective for periods beginning on or after 1 January 2027 are not expected to have a significant impact on the Group:

            • IFRS 19 Subsidiaries without Public Accountability: Disclosures (IFRS 19) - Issued in May 2024 (endorsed by the UK Endorsement Board) and effective from 1 January 2027

            • IFRS 20 Regulatory Assets and Regulatory Liabilities (IFRS 20) - Issued in May 2026 and effective from 1 January 2029 (subject to endorsement by the UK Endorsement Board)

            • Translation to a Hyperinflationary Presentation Currency (IAS 21), issued in November 2025 and effective from 1 January 2027 (subject to endorsement by the UK Endorsement Board).

   2. Group structure and products
      1. Group composition

         An extract of the Group structure that gives an overview of the composition of the Group can be found in the notes to the Group's 2025 consolidated financial statements. There have been no significant changes in the period to the Group composition. M&G plc is the holding company of the Group.

         The Group consolidates underlying investee entities held by collective investment vehicles when it is deemed to have accounting control of both the investment vehicle and the underlying entity. During the six months ended 30 June 2026, the Group ceased to have accounting control over a significant underlying investee entity and therefore it is no longer consolidated in the Group's financial statements. At the point of deconsolidation, the remaining goodwill of £100m attributed to the underlying entity was impaired, with the impairment charge recognised in Administrative and other expenses and a gain on deconsolidation of £190m was recognised in Other investment return. The carrying value of Property, Plant and Equipment and Subordinated Liabilities and other borrowings, the significant balance sheet line items attributed to the underlying entity, included in the consolidated balance sheet at 31 December 2025 were £855m and £947m respectively.

      2. Held for sale

         	As at 30 June 2026 £m	As at 31 December 2025 £m
         Investment properties	639	387
         Equity securities and pooled investment fundsi, ii	85	94
         Loans	932	929
         Other assets (including cash and cash equivalents)iii	714	939
         Assets held for sale	2,370	2,349
         Other liabilitiesiii	1,013	988
         Liabilities held for sale	1,013	988

         1. Includes £72m (31 December 2025: £40m) of seed capital classified as held for sale as it is expected to be divested within 12 months.

         2. During the year ended 31 December 2025, the Group disposed of a portfolio of pooled investment funds as part of a coordinated sale to an external fund not controlled by the Group. As part of the transaction, certain investments, with a value of £54m, had a trade date of 1 January 2026 or 1 January 2027. Those with a trade date of 1 January 2027 have a value of £13m, and remain classified as held for sale as at 30 June 2026.

         3. Includes £697m (31 December 2025: £910m) of assets held for sale and £994m (31 December 2025: £974m) of liabilities held for sale in relation to the Group's consolidated infrastructure capital private equity vehicles.

         As at 30 June 2026 and 31 December 2025, the Group's equity release mortgage portfolio, with a carrying value of £932m and £929m respectively, met the criteria for being classified as held for sale. The entire portfolio was subsequently disposed of in July 2026 as described in Note 17.

      3. Insurance and investment products

         A full description of the main contract types written by the Group's insurance entities as at 31 December 2025 is included in the notes to the Group's 2025 consolidated financial statements.

         During the six months ended 30 June 2026, the Group launched its new With-Profits Bulk Purchase Annuity proposition (BPA Plus). Further details are provided in Note 3.1.

         Since April 2026, certain PruFund business has been written effectively on a 100:0 basis, whereby, the policyholder bears the investment risk while the shareholder bears the expense risk and is compensated using a charges less expenses model. The Group also launched PruFund on an external platform during the period under the same model.

   3. Segmental analysis

      The Group's operating segments are defined and presented in accordance with IFRS 8: Operating Segments on the basis of the Group's management reporting structure and its financial management information. The Group's primary reporting format is by product type.

      The Chief Operating Decision Maker for the Group is the Group Executive Committee. Reporting of assets and liabilities by reportable segment has not been included below, as this is not information that is provided to the Group Executive Committee on a regular basis.

      1. Operating segments

         The Group's operating segments are:

         Asset Management

         The Group's investment management capability is offered to both Wholesale and Institutional clients. The Group's Wholesale clients invest through either UK domiciled OEICs or Luxembourg domiciled SICAVs and have access to a broad range of actively managed investment products, including Equities, Fixed Income and Multi-Asset. The Group serves these clients through its many business-to-business relationships both in the UK and overseas, which include independent financial advisers, high-street banks and wealth managers. The Group's Institutional clients, include pension funds, insurance companies and banks from around the world, who invest through segregated mandates and pooled funds into a diverse range of Equities, Fixed Income and Real Estate investment products and services.

         The Asset Management segment generates revenues by charging fees which are typically based on the level of assets under management. The Asset Management segment also earns investment management revenues from the management of a significant proportion of Life assets.

         Life

         The Life business operates in the savings and pensions market and includes corporate pension solutions, individual life and pensions, international solutions and advice.

         Corporate pension solutions consists of our Bulk Purchase Annuity (BPA) business which includes traditional, value share and with-profits BPAs, along with workplace pensions. During 2026 the Group launched BPA Plus which is a with-profits BPA proposition that provides guaranteed pension scheme benefits similar to a traditional BPA, with the potential for discretionary cash bonuses linked to favourable credit experience on the assets backing the liabilities.

         Individual products include annuity contracts: level annuities, which provide a fixed annuity payment; fixed increase annuities, which incorporate a periodic automatic fixed increase in annuity payments; inflation-linked annuities, which incorporate a periodic increase based on a defined inflation index; and with-profits annuities, written in the With-Profits Fund, combining income features of annuity contracts with the investment-smoothing features of with-profits products. Some inflation-linked annuities have minimum and/or maximum increases relative to the corresponding inflation index. The life products are primarily whole of life assurance, endowment assurances, term assurance contracts, income protection, and critical illness products. Investment products include unit-linked contracts and the Prudential bond offering, which mainly consists of single-premium-invested whole of life policies, where the client has the option of taking ad hoc withdrawals, regular income or the option of fully surrendering their bond. Investment products also include the Prudential Guaranteed Income Plan which provides, in exchange for a lump-sum investment, a guaranteed regular income over a fixed term, typically between 3 and 30 years, and/or a guaranteed lump-sum payment at the end of the term.

         All of the Group's products that give access to the PruFund investment proposition are included in Life. The PruFund investment proposition gives customers access to savings contracts with smoothed investment returns and a wide choice of investment profiles.

         International solutions include our savings businesses based in Ireland and Poland (Prudential International Assurance plc). The Group's products which give non-UK clients access to the PruFund investment proposition are also included.

         Advice provides access to a range of retirement, savings and investment management solutions to its clients. These products are distributed to clients through intermediaries and advisers, and include Retirement Account (a combined individual pension and income drawdown product), individual pensions, ISAs, collective investments and a range of on-shore and off-shore bonds.

         Corporate Centre

         Corporate Centre includes central corporate expenses and debt costs.

      2. Adjusted operating profit before tax methodology

         Adjusted operating profit before tax is one of the Group's non-GAAP alternative performance measures, which complements IFRS GAAP measures and is key to decision-making and the internal performance management of operating segments.

         Details of the methodology are presented below and should be read in conjunction with the accounting policies in the Annual Report and Accounts:

         Fee based business

         For the Group's fee based business written by Asset Management and Life segments, adjusted operating profit before tax includes fees received from clients and operating costs for the business including overheads, expenses required to meet regulatory requirements and regular business development/restructuring and other costs. Costs associated with fundamental Group-wide restructuring and transformation are not included in adjusted operating profit before tax.

         Business written in the With-Profits Fund

         For the Group's business written in the With-Profits Fund in the Life segment (other than BPA Plus), adjusted operating profit before tax includes the release of the risk adjustment and the expected release of the CSM for the period. The expected CSM release for the period is calculated as the CSM at the start of the period, updated to reflect long-term expected investment returns including the CSM generated on expected new business over the period, multiplied by the expected amortisation factor for the period.

         • The long-term expected investment returns are calculated as at 1 January on the assumption of real-world investment returns, which are determined by reference to the risk-free rate plus a risk premium based on the mix of assets held to back the asset shares. For 2026 onwards the methodology has been updated to select the point on the risk-free rate-curve which best matches the average duration of the business in determining the risk-free rate. In the calculation of the expected CSM release for with-profits business, the long-term expected investment returns for 2026 are 7.2% pa (2025: 7.8% pa).

         • The expected amortisation factor for the period reflects the expected pattern of release of the CSM for the with-profits business over the life of the contracts. The expected amortisation factor varies for PruFund and Traditional business due to differing maturity profiles; for PruFund the factor used for 2026 is 11.0% pa (2025: 11.1% pa) and for Traditional is 13.5% pa (2025: 13.1% pa).

           Adjusted operating profit before tax for the Group's business written in the With-Profits Fund also includes the expected investment return for the shareholder's share of the IFRS value of the excess assets in the Fund. For 2026, the expected return is 5.1% pa (2025: 6.2% pa). As above, the methodology has been updated in determining the rate.

           Adjusted operating profit for the Life segment does not include the impact of any margins on investment management fee earned by other Group entities. These are recognised in the Asset Management segment as they emerge.

           The application of IFRS 17 to non-profit contracts in the With-Profits Fund results in a mismatch due to the difference between their value under the IFRS 17 General Measurement Model (GMM) accounting for these contracts (primarily annuities) and how these contracts are treated in determining their fair value when assessing current and future with-profits contracts under the Variable Fee Approach (VFA). Although the impact of this mismatch balances over the life of the current and future with-profits contracts as the CSM under the VFA is set up and released, results for the period do not reflect the long-term economics of the transaction. Therefore, the impact of the mismatch has been excluded from adjusted operating profit before tax.

           Annuity business

           For the Group's annuity products written by the Life segment, including BPA Plus, adjusted operating profit before tax includes the release of the CSM and the risk adjustment for the period. Adjusted operating profit before tax also includes the returns on surplus assets in excess of IFRS 17 liabilities based on long-term expected investment returns, calculated as at 1 January and determined by reference to the risk-free rate plus a risk premium based on the mix of assets. For 2026, the long-term expected investment returns for shareholder-backed annuities is 4.5% pa (2025: 5.2% pa). For 2026 onwards the methodology to calculate the rate has been updated to select the point on the risk-free rate-curve which best matches the average duration of the business. The net effect of changes to the valuation rate of interest due to asset trading and portfolio rebalancing (in both cases, after the asset deployment required to achieve the rates assumed in pricing), together with experience variances, are also included in adjusted operating profit before tax.

           The results of the intercompany buy-in transaction executed between the trustees of M&G Group Pension Scheme (M&GGPS) and PAC in 2023 are included in adjusted operating profit before tax as this generates economic value for the Group.

           Adjusted operating profit before tax for annuities excludes the impact of the mismatch resulting from the measurement of fulfilment cash flows using current interest rates and any changes to CSM being measured using locked-in rates.

           For Value Share BPAs, the adjusted operating profit before tax reflects the net results of the underlying BPA and the reinsurance arrangement after removing the impact of any mismatches that arise on the accounting for these transactions as stated below. The resulting impact mainly represents the contribution of the intermediary fee earned on this arrangement.

           Corporate Centre

           For the Corporate Centre adjusted operating profit before tax is the expense incurred to run the head office and the actual investment return on treasury activities and debt costs.

           Key adjusting items between IFRS profit before tax and adjusted operating profit before tax

           Certain adjustments that are considered to be non-recurring or strategic, or due to short-term movements not reflective of longer-term performance are made to IFRS profit or loss before tax to determine adjusted operating profit before tax. Adjustments are in respect of short-term fluctuations in investment returns, mismatches arising on the application of IFRS 17, impairment and amortisation in respect of acquired intangibles, costs associated with fundamental Group-wide restructuring and transformation, profit or loss arising on business and corporate transactions and profit or loss before tax from any discontinued operations.

           Short-term fluctuations in investment returns

           The adjustment for short-term fluctuations in investment returns represents:

         • difference between actual CSM release for the period and expected CSM release for the period for with-profits contracts. For nonprofit business in the With-Profits Fund it is the CSM release for the period;

         • movements in the fair value of instruments held to manage equity risk in the future with-profits shareholder transfer and to mitigate interest rate risk for the optimisation of the Group's capital position on a Solvency II basis;

         • difference between actual and long-term expected investment return on surplus assets backing the shareholder annuity capital and shareholders' share of excess assets in the With-Profits Fund measured on an IFRS basis;

         • foreign exchange movements on the US dollar subordinated debt held in the Corporate Centre;

         • fair value movements on strategic investments;

         • impact of short-term credit risk provisioning and experience variances on the measurement of best estimate liabilities, specifically:

           • the impact of credit risk provisioning for short-term adverse credit risk experience;

           • the impact of credit risk provisioning for actual upgrade and downgrade experience during the year. This is calculated by reference to current interest rates;

           • credit experience variance relative to long-term assumptions, reflecting the impact of defaults and other similar experience, such as asset exchanges arising from debt restructuring; and

           • the impact of market movements on bond portfolio weightings and the subsequent impact on credit provisions.

         • the elimination on consolidation of the results of the intercompany buy-in transaction executed between the trustees of M&GGPS and PAC in 2023.

           Mismatches arising on the application of IFRS 17

           The application of IFRS 17 results in the following mismatches in valuation basis being recognised in total profit/loss before tax. For the purposes of calculating adjusted operating profit before tax the impact of these mismatches has been excluded.

         • difference between the value under IFRS 17 GMM for non-profit contracts (primarily annuities) written in the With-Profits Fund and how these contracts are treated in determining their fair value when assessing current and future with-profits contracts under the VFA;

         • mismatch resulting from measurement of fulfilment cash flows for shareholder non-profit business (primarily annuities) and BPA Plus using current interest rates while related changes to the CSM are measured using locked-in rates; and

         • mismatches resulting from measurement differences arising on the accounting for Value Share BPAs related to the definition of the insurance service for the annuity contracts compared to the reinsurance contract and the discount rate used for each type of contract.

         Amortisation and impairment of intangible assets acquired in business combinations

         Amortisation and impairment of intangible assets (including goodwill) acquired in business combinations are excluded from adjusted operating profit before tax.

         Profit/(loss) on disposal of businesses and corporate transactions

         Certain additional items are excluded from adjusted operating profit before tax where those items are considered to be non-recurring or strategic, or considered to be one-off, due to their size or nature, and therefore not indicative of the long-term operating performance of the Group. These include profits or losses arising on corporate transactions (including any liabilities that arise from matters that arose prior to any acquisition by the Group) and costs associated with completing those transactions, and profits or losses on discontinued operations.

         Restructuring costs and other

         Restructuring costs and other primarily reflect the shareholder allocation of costs associated with the transformation of our business. These costs represent fundamental Group-wide restructuring and transformation and are therefore excluded from adjusted operating profit before tax.

         For the year ended For the six months ended 30 June 31 December
         	2026 £m	2025 £m	2025 £m
         Asset Management	159	128	280
         Life	375	344	764
         Corporate Centre	(99)	(94)	(206)
         Total segmented adjusted operating profit before tax	435	378	838
         Short-term fluctuations in investment returnsi	(551)	(12)	(164)
         Mismatches arising on application of IFRS 17ii	(33)	2	(106)
         Amortisation and impairment of intangible assets acquired in business
         combinations	(13)	(11)	(52)
         Profit/(loss) on disposal of business and corporate transactions	-	5	(5)
         Restructuring costs and otheriii	(60)	(37)	(90)
         IFRS (loss)/profit before tax and non-controlling interests attributable to	(222)	325	421
         IFRS profit attributable to non-controlling interestsiv	9	8	18
         IFRS (loss)/profit before tax attributable to equity holdersv	(213)	333	439

      3. Analysis of Group adjusted operating profit before tax by segment

         equity holders

         1. Losses from short-term fluctuations in investment returns increased significantly in the six months to 30 June 2026 mainly due to a £325m valuation loss following the publication of the UK Government's proposed draft Commonhold and Leasehold Reform Bill in January 2026. This impacted both the valuation of insurance contract liabilities, following the resultant removal of assets from portfolios used to derive the discount rate applied in calculating the liabilities, and the valuation of ground rent assets. The remaining losses include a loss of £61m (30 June 2025: £23m, 31 December 2025: £34m) on interest rate swaps purchased to protect PAC's Solvency II capital position against falls in interest rates, driven by rises in yields of longer duration in the six months to 30 June 2026 which were larger than those experienced over 2025. There was also a loss of £57m (30 June 2025: £50m, 31 December 2025: £174m) on the hedging instruments held to protect the Solvency II capital position from falling equity markets, due to rising equity markets, and a £5m foreign exchange loss (30 June 2025: £37m gain, 31 December 2025: £30m gain) on the USD denominated subordinated loan note due to strengthening of the currency against GBP over the six months to 30 June 2026.

         2. Mismatches arising on application of IFRS 17 primarily relates to a mismatch which occurs in relation to non-profit business in the With-Profits Fund generating a

            £38m loss in the six months to 30 June 2026 (30 June 2025: £1m gain, 31 December 2025: £61m loss). This mismatch increased in the six months to 30 June 2026 due to a reduction in the fair value of non-profit business compared to the IFRS 17 value of the liabilities. Over the expected term of the contracts this mismatch is expected to slowly unwind as the profit on non-profit business in the With-Profits Fund is recognised.

         3. Restructuring costs and other excluded from adjusted operating profit includes costs that relate to the transformation of our business which are allocated to the shareholder. These differ to restructuring costs presented in the analysis of administrative and other expenses in Note 6 which include costs allocated to the With-Profits Fund. In the six months ended 30 June 2026, restructuring costs and other of £60m (30 June 2025: £37m, 31 December 2025: £90m) includes

            £20m (30 June 2025: £11m, 31 December 2025: £27m) in relation to actions taken to reduce our cost base and £24m (30 June 2025: £15m, 31 December 2025:

            £41m) of investment to simplify our operating model and develop capabilities across the business to support scalable growth. Restructuring costs also includes

            £14m (30 June 2025: £6m, 31 December 2025: £19m) in relation to the Group's Financial Crime Enhancement Programme.

         4. Excludes non-controlling interests in relation to amortisation of intangible assets acquired in business combinations which is presented net within amortisation and impairment of intangible assets acquired in business combinations.

         5. The tax credit attributable to equity holders of £48m (30 June 2025: £85m tax charge, 31 December 2025: £125m tax charge) results in an IFRS loss for the period of £165m (30 June 2025: £248m profit, 31 December 2025: £314m profit) as presented in the condensed consolidated income statement.

      4. Analysis of Group revenue by segment

The following table shows revenue by segment for the Group:

i Asset management fee income is net of inter-segment fee income and other presentational differences of £92m (30 June 2025: £79m, 31 December 2025:

£182m).

The Group has a widely diversified client base. There are no clients whose revenue represents greater than 10% of fee income.

The Group's exposure to risks arising from insurance assets and liabilities is different for each component of the Group's business. The Group's insurance revenue is presented below for the different components of business.

Insurance revenue is recognised as services under the group of insurance contracts are provided to policyholders. This is at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services but excludes investment components.

The amount of CSM recognised in profit or loss in the period is based on coverage units provided during the current period. The number of coverage units is a quantification of services provided by the contracts in the group, determined by considering for each contract the quantity of benefits provided and its expected coverage period.

Services provided to insurance contracts include insurance coverage and, for all direct participating contracts, investment services for managing underlying items on behalf of policyholders (investment-related services). In addition, insurance contracts without direct participation features may also provide investment services for generating an investment return for the policyholder (investment-return service).

The following table disaggregates fee income by segment:

1. Consists of impairment of certain property, plant and equipment held through the Group's infrastructure capital private equity vehicles of £96m (30 June 2025:

   £214m, 31 December 2025: £316m). These assets are classified as held for sale at 30 June 2026 (30 June 2025: £214m, 31 December 2025: £304m).

2. Includes impairment of certain goodwill and intangible assets held through the Group's infrastructure capital private equity vehicles of £100m (30 June 2025:

£65m, 31 December 2025: £47m).

In addition to the interest expense shown above of £134m (30 June 2025: £147m, 31 December 2025: £326m), the interest expense incurred in respect of subordinated liabilities for the six months ended 30 June 2026 was £68m (30 June 2025: £68m, year ended 31 December 2025: £138m). This is shown as finance costs in the condensed consolidated income statement.

1. Tax
   1. Tax charged to the consolidated income statement

      1. Income statement tax charge

         For the year ended For the six months ended 30 June 31 December
         	2026 £m	2025 £m	2025 £m
         Total current tax charge	359	263	592
         Total deferred tax charge	110	48	404
         Total tax charge	469	311	996

      2. Allocation of profit/(loss) before tax and tax charge between equity holders and policyholders

         The profit before tax reflected in the condensed consolidated income statement for the six months ended 30 June 2026 of £304m (30 June 2025: £559m, year ended 31 December 2025: £1,310m) comprises the pre-tax result attributable to equity holders and an

         amount equal and opposite to the tax charge attributable to policyholders' returns. This is the formal measure of profit or loss before tax under IFRS but it is not the result attributable to equity holders.

         This is principally because the corporate taxes of the Group include those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, this measure of profit before all taxes is not representative of pre-tax profits attributable to equity holders.

         The tax charge attributable to policyholders' returns is removed from the Group's total profit/(loss) before tax in arriving at the Group's profit/(loss) before tax attributable to equity holders. As the net of tax profit attributable to policyholders is zero, the Group's pre-tax profit attributable to policyholders is an amount equal and opposite to the tax charge attributable to policyholders included in the total tax charge.

         For the six months ended 30 June For the year ended 31 December 2026 2025 2025 Equity Equity Equity holders Policyholders Total holders Policyholders Total holders Policyholders Total
         	£m	£m	£m	£m	£m	£m	£m	£m	£m
         (Loss)/profit before tax	(213)	517	304	333	226	559	439	871	1,310
         Tax credit/(charge)	48	(517)	(469)	(85)	(226)	(311)	(125)	(871)	(996)
         (Loss)/profit for the period	(165)	-	(165)	248	-	248	314	-	314

      3. Equity holders' effective tax rate

         The equity holders' tax credit for the six months ended 30 June 2026 was £48m (30 June 2025: £85m tax charge, 31 December 2025:

         £125m tax charge) representing an effective tax rate of 22.5% (30 June 2025: 25.5%, 31 December 2025: 28.5%). The equity holders'

         effective tax rate of 22.5% diverges from the UK statutory rate of 25.0% (30 June 2025: 25.0%, 31 December 2025: 25.0%) and any difference is primarily due to the detrimental impact arising from non-deductible expenses and difference in the taxation of life insurance business.

      4. Factors that may impact the future tax rate

         The majority of the Group's profits are generated in the UK. Taking into account recurring tax adjusting items, the underlying effective tax rate for equity holders' portion of profits is expected to be marginally higher than the statutory rate in the UK of 25%.

         The Group has total unused tax losses carried forward, including both capital and other losses, on which no deferred tax is recognised of

         £553m (30 June 2025: £634m, 31 December 2025: £583m). The Group's unused tax losses primarily relate to UK capital losses of

         £545m (30 June 2025: £626m, 31 December 2025: £575m). No deferred tax asset is recognised on these losses and, should appropriate taxable profits arise in future periods, it will result in tax benefits thereby reducing the future effective tax rate in the relevant periods.

         The Group is subject to the global minimum top-up tax under Pillar Two legislation enacted in the UK and effective for the year ended 31 December 2024. The Group has assessed the top-up tax to be booked for the period ended 30 June 2026 as nil (30 June 2025: nil,

         31 December 2025: £2m). A credit of £1m has been included in the tax credit/(charge) at 30 June 2026 (30 June 2025: credit of £1m,

         31 December 2025: charge of £1m) to adjust the amount being provided for in relation to prior years. The Group has applied a temporary mandatory exclusion from deferred tax accounting for the impacts of top-up tax. The Group continues to monitor developments in Pillar Two legislation, guidance and administrative practice in relevant jurisdictions. The Group has implemented processes to comply with applicable Pillar Two reporting, filing and payment obligations and will continue to adapt these processes as requirements evolve.

   2. Deferred tax

      1. Deferred tax assets and liabilities

         Under IAS 12, deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability settled, based on tax rates (and laws) that have been enacted or are substantively enacted at the end of the reporting period. Deferred tax assets are recognised as recoverable to the extent that, on the basis of all available evidence, it is regarded as probable there will be suitable taxable profits from which the future reversal of the underlying temporary differences can be deducted or tax losses utilised.

         Deferred tax assets and liabilities are only offset when there is both a legal right to set-off and an intention to settle on a net basis.

         The table below shows the closing deferred tax assets and liabilities. The asset and liability balances are different from those disclosed on the condensed consolidated statement of financial position as the below amounts are presented before offsetting asset and liability balances where there is a legal right to set off and an intention to settle on a net basis.

         7 Tax (continued)

         For the six months For the year ended ended 30 June 2026 31 December 2025

         £m £m

         Unrealised gains/losses on investments (1,229) (1,029)

         Balance relating to insurance and investment contracts (157) (189)

         Other short-term timing differences 57 64

         Deferred acquisition costs 9 11

         Defined benefit pensions (30) (27)

         Capital allowances 14 15

         Tax losses carried forward 562 503

         Share-based payments 43 34

         Net deferred tax liability (731) (618)

         Assets 1,000 945

         Liabilities (1,731) (1,563)

         Net deferred tax liability (731) (618)

         The net deferred tax liability at 30 June 2026 of £731m has increased by £113m during the period from £618m at 31 December 2025. The increase is predominantly due to an increase in the unrealised gains/losses on investments partially offset by a decrease in liability on balances relating to insurance and investment contracts and an increase in the deferred tax asset on tax losses carried forward during the period. The losses carried forward of £562m (31 December 2025: £503m) relate primarily to PAC and M&G plc. A deferred tax asset has been recognised on the full excess losses, trade losses and shareholder losses and a proportion of the capital losses on the basis that the Group considers it is probable that sufficient future taxable profits and UK capital gains will be available against which these losses can be utilised. It is estimated the losses on which deferred tax assets have been recognised will be utilised in less than 14 years. The deferred tax asset on losses is measured at the tax rates that are expected to apply to the period when the asset is realised.

         On 26 November 2025, the UK Government announced that the rate of policyholder tax would increase from 20% to 22% effective from 6 April 2027. The rate change was substantively enacted on 18 March 2026 as part of Finance Act 2026 (FA 2026) which resulted in a net impact increasing the deferred tax liability by £57m.

      2. Unrecognised deferred tax

         At the end of the reporting period, the Group has unused tax losses of £553m (30 June 2025: £634m, 31 December 2025: £583m) for which no deferred tax asset is being recognised. The Group's unused tax losses primarily relate to capital losses in the UK of £545m

         (30 June 2025: £626m, 31 December 2025: £575m). No deferred tax asset is recognised on these losses as it is considered not probable that future taxable UK capital gains or other appropriate profits will be available against which they can be utilised. Under UK law, capital losses and trade losses can be carried forward indefinitely.

   3. Current tax assets and liabilities

      One of the Group's subsidiaries, The Prudential Assurance Company Limited (PAC), is the lead litigant in a combined group action against HM Revenue and Customs (HMRC) concerning the correct historical tax treatment applying to dividends received from overseas portfolio investments of its With-Profits Fund.

      In February 2018, the Supreme Court heard HMRC's appeal against the earlier Court of Appeal decision in PAC's favour. The decision of the Supreme Court, released in July 2018, upheld the main point of dispute in PAC's favour but reversed the decisions of the lower courts on some practical points of how to apply that principle. The Supreme Court issued its order giving effect to its decision in October 2019, stating any remaining issues of computation be remitted back to the High Court. PAC and HMRC are working through the mechanics of implementing the Supreme Court decisions. To date, this work has led to a reduction in the estimate for policyholder tax credit recoverable, and the associated estimate of interest receivable.

      As at 30 June 2026, PAC has recognised a total policyholder tax credit of £114m (31 December 2025: £114m) in respect of its claim against HMRC. Of this amount, £40m (31 December 2025: £40m) has been paid by HMRC leaving a tax recoverable balance of £74m (31 December 2025: £74m) recorded as an amount of tax due from HMRC. PAC will be entitled to interest on the tax repaid. The settlement is now expected to be finalised during the second half of 2026 at which point PAC should receive full and final payment.

2. Earnings per share

   Basic earnings per share (EPS) for the six months ended 30 June 2026 was (7.1)p (30 June 2025: 10.1p, 31 December 2025: 12.6p) and diluted EPS was (7.1)p (30 June 2025: 10.0p, 31 December 2025: 12.3p). Basic EPS is based on the weighted average ordinary shares outstanding after deducting treasury shares and shares held by the employee benefit trust. Diluted EPS is based on the potential future shares outstanding resulting from exercise of options under the various share-based payment schemes in addition to the weighted average ordinary shares outstanding.

   The following table shows details of basic and diluted EPS:

   	For the six months	ended 30 June	For the year ended 31 December
   	2026 £m	2025 £m	2025 £m
   (Loss)/profit attributable to equity holders of M&G plc	(170)	243	302
   	For the six months	ended 30 June	For the year ended 31 December
   	2026 Millions	2025 Millions	2025 Millions
   Weighted average number of ordinary shares outstanding	2,399	2,398	2,404
   Dilutive effect of share options and awards	-	39	56
   Weighted average number of diluted ordinary shares outstanding	2,399	2,437	2,460
   	For the six months	ended 30 June	For the year ended 31 December
   	2026	2025	2025
   	Pence per share	Pence per share	Pence per share
   Basic (loss)/earnings per share	(7.1)	10.1	12.6
   Diluted (loss)/earnings per share	(7.1)	10.0	12.3

   As the Group made a loss attributable to equity holders of the Company for the six months ended 30 June 2026, the diluted EPS is the same as the basic EPS as it is not permissible for the diluted EPS to be greater than the basic EPS.

   			For the year ended 31
   	For the six months ended 30 June		December
   	2026 2025		2025
   	Pence per Pence per share £m share	£m	Pence per share £m

3. Dividends

   Dividends relating to reporting period: First interim dividend - Ordinary	6.8	163	6.7	161	6.7	161
   Second interim dividend - Ordinary	-	-	-	-	13.8	328
   Total	6.8	163	6.7	161	20.5	489
   Dividends paid in reporting period: Prior year's second interim dividend - Ordinary	13.8	328	13.5	321	13.5	321
   First interim dividend - Ordinary	-	-	-	-	6.7	161
   Total	13.8	328	13.5	321	20.2	482

   Subsequent to 30 June 2026, the Board has declared a first interim dividend for 2026 of 6.8 pence per ordinary share, an estimated

   £163m in total. The dividend is expected to be paid on 16 October 2026 and will be recorded as an appropriation of retained earnings in the Parent Company's financial statements at the time that it is paid.

4. Defined benefit pension schemes

   The Group operates three defined benefit pension schemes, which historically have been funded by the Group. The largest defined benefit scheme as at 30 June 2026 is the Prudential Staff Pension Scheme (PSPS), which accounts for 83% (31 December 2025: 83%) of the present value of the defined benefit pension obligation. The Group also operates two smaller defined benefit pension schemes that were originally established by the M&G Group Limited (M&GGPS) and Scottish Amicable (SASPS) businesses.

   On 18 September 2023, M&GGPS Trustees executed a buy-in transaction with PAC covering all deferred and pensioner member liabilities. A premium of £329m was transferred to PAC as part of the transaction. The assets transferred to PAC as premium were recognised in the relevant line within financial assets in the consolidated statement of financial position. As a result of the buy-in the relevant plan assets transferred were replaced with a single line insurance policy reimbursement right asset which is eliminated on consolidation. This reimbursement right asset, although available to the scheme, does not constitute a plan asset under IAS 19. The value of this insurance policy at 30 June 2026 was £253m (31 December 2025: £262m).

   M&GGPS agreed to transfer the liability related to all active members to the PSPS scheme. Subsequent to the transfer transacted at the same time as the buy-in, a portion of the net economic pension surplus of PSPS is attributable to M&G FA Limited, a subsidiary of the Group, and is attributable to the shareholders. As at 30 June 2026 the net economic pension surplus attributed to the With-Profits Fund is 59% (31 December 2025: 59%) and to the Group's shareholders is 41% (31 December 2025: 41%).

   Under IAS 19: Employee Benefits and IFRIC 14: IAS 19 - The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, the Group can only recognise a surplus to the extent that it is able to access the surplus either through an unconditional right of refund or through reduced future contributions relating to ongoing service of active members. The Group has no unconditional right of refund to any surplus in PSPS. Accordingly, PSPS's net economic pension surplus is restricted up to the present value of the Group's economic benefit, which is calculated as the difference between the estimated future cost of service for active members and the estimated future ongoing contributions. The level of the restriction is set out in the tables that follow.

   In contrast, the Group is able to access the surplus of SASPS and M&GGPS through an unconditional right of refund. Therefore, the surplus resulting from the schemes (if any) would be recognised in full. As at 30 June 2026 the SASPS scheme is in surplus and the M&GGPS scheme is in deficit based on the IAS 19 valuation.

   M&GGPS is in a net economic surplus position but in deficit on an IAS 19 basis as a result of the elimination of the reimbursement right asset recognised in respect of the buy-in of the scheme by PAC as explained above. The scheme also has investments in insurance policies issued by Prudential Pensions Limited (PPL), a subsidiary of the Group, through which it invests in certain pooled funds. Under IAS 19, non-transferable insurance policies issued by a related party do not qualify as plan assets and these are eliminated.

   The gross economic position of M&GGPS which includes the PPL policies and reimbursement right asset is reflected in the financial statements of M&G FA Limited.

   The SASPS net economic pension surplus is attributed 40% to the With-Profits Fund and 60% to the Group's shareholders. Both the policyholder and shareholder allocation of SASPS is reflected in the financial statements of PAC.

   10 Defined benefit pension schemes (continued) The pension assets and liabilities for the defined benefit pension schemes are as follows:
   Fair value of plan assets	3,815	514	267	4,596
   Present value of defined benefit obligation	(3,515)	(471)	(253)	(4,239)
   Effect of restriction on surplus	(296)	-	-	(296)
   Net economic pension surplusi	4	43	14	61
   Non-qualifying insurance policies	-	-	(12)	(12)
   Elimination of reimbursement right asset on consolidation	-	-	(253)	(253)
   Net total pension surplus/(deficit)	4	43	(251)	(204)
   Attributable to: Shareholder-backed business	1	26	(251)	(224)
   With-Profits Fund	3	17	-	20
   Net total pension surplus/(deficit)	4	43	(251)	(204)
   Fair value of plan assets	3,938	519	277	4,734
   Present value of defined benefit obligation	(3,595)	(481)	(262)	(4,338)
   Effect of restriction on surplus	(338)	-	-	(338)
   Net economic pension surplusi	5	38	15	58
   Non-qualifying insurance policies	-	-	(14)	(14)
   Elimination of reimbursement right asset on consolidation	-	-	(262)	(262)
   Net total pension surplus/(deficit)	5	38	(261)	(218)
   Attributable to: Shareholder-backed business	2	23	(261)	(236)
   With-Profits Fund	3	15	-	18
   Net total pension surplus/(deficit)	5	38	(261)	(218)

   	As at 30 June 2026
   	PSPS SASPS M&GGPS Total £m £m £m £m

   	As at 30 June 2026
   	PSPS SASPS M&GGPS Total £m £m £m £m

   	As at 31 December 2025
   	PSPS SASPS M&GGPS Total £m £m £m £m

   	As at 31 December 2025
   	PSPS SASPS M&GGPS Total £m £m £m £m

   i The economic basis reflects the position of the defined benefit schemes from the perspective of the pension schemes, adjusted for the effect of IFRIC 14 for the derecognition of PSPS's unrecognisable surplus and before adjusting for any non-qualifying assets.

5. Insurance liabilities
   1. Insurance, investment with discretionary participation features and reinsurance contracts

      2026

      As at 30 June

      With-profitsi

      £m

      Unit-linked Annuities and other business long-term business

      £m £m

      Total

      £m

      The breakdown of groups of insurance, investment with DPF and reinsurance contracts issued, and reinsurance contracts held, that are in an asset position and those in a liability position is set out in the table below:

      Insurance contract liabilities Insurance contract liabilities	28,001	4,396	14,838	47,235
      Investment contracts with DPF liabilities	103,591	-	242	103,833
      	131,592	4,396	15,080	151,068
      Insurance contract assets Insurance contract assets	-	-	46	46
      	-	-	46	46
      Reinsurance contracts Reinsurance contract assets	18	4	979	1,001
      Reinsurance contract liabilities	1	21	226	248

      Insurance contract liabilities Insurance contract liabilities	28,209	4,257	14,653	47,119
      Investment contracts with DPF liabilities	100,207	-	219	100,426
      	128,416	4,257	14,872	147,545
      Insurance contract assets Insurance contract assets	-	-	49	49
      	-	-	49	49
      Reinsurance contracts Reinsurance contract assets	19	3	1,045	1,067
      Reinsurance contract liabilities	1	22	237	260

      2025

      As at 31 December

      With-profitsi

      £m

      Unit-linked Annuities and other business long-term business

      £m £m

      Total

      £m

      i Includes the With-Profits Sub-Fund (WPSF) and the Defined Charge Participating Sub-Fund (DCPSF), including the non-profit business written within these funds.

      The IFRS 17 disclosures have been disaggregated based on the following lines of business:

      • With-profits business (including non-profit business in the With-Profits Fund)

      • Unit-linked business

      • Annuities and other long-term business (including BPA Plus)

      This reflects the level of granularity at which the assumptions are set and the insurance contract liabilities calculated. All lines of business mentioned above form part of the Life segment.

   2. Determination of insurance, investment with DPF and reinsurance contract balances for different components of business

Further information on the different types of insurance and investment contracts written in each line of business is presented in Note 2.4 in the notes to the Group's 2025 consolidated financial statements.

In addition, during the year the Group has launched BPA Plus which is a with-profits BPA proposition. The financial and non-financial risks and related premiums on BPA Plus contracts are shared between the With-Profits Fund and the shareholder based on arrangements formalised through internal Memoranda of Understanding (MoUs). The underlying contract and MoUs are combined and treated as a single contract, reflecting that the cash flows arising from the MoUs affect the amounts payable to policyholders. The related balances are presented within Annuities and other long-term business. The longevity and investment risk on the contract are shared 80:20 between the With-Profits Fund and shareholder respectively, whereas, the maintenance expense risk is borne entirely by the shareholder.