Full Year 2024 M&G PLC Earnings Call Transcript
Key Points
- M&G PLC (MGPUF) generated over GBP900 million of capital, exceeding their upgraded OCG target, which allowed for debt reduction and increased dividend cash spend.
- The company announced a move to a progressive dividend policy, reflecting confidence in future business prospects.
- M&G PLC (MGPUF) achieved GBP188 million in savings from transformation efforts, leading to an upgraded cost target of GBP230 million by the end of 2025.
- Group operating profits increased by 5% year-on-year, driven by a nearly 20% improvement in Asset Management results.
- The Life segment saw a 50% increase in new business volumes, reaching nearly GBP900 million in premiums, offsetting the run-off of the in-force book.
- Net client outflows of GBP1.9 billion were reported, primarily due to UK Institutional Asset Management and PruFund.
- Asset Management net outflows of GBP900 million were driven by the Institutional segment, with headwinds from UK DB schemes.
- PruFund flows remained under pressure as customers favored alternative risk-free solutions due to elevated interest rates.
- The cost-to-income ratio target of 70% was not achieved, with the current ratio standing at 76% without performance fees.
- The company faces challenges in the UK market, with structural challenges in Defined Benefit pension schemes and high rates impacting derisking journeys.
Good morning, everyone, and welcome to M&G's 2024 full-year results presentation. Today, as usual, we'll have Andrea and Kathryn going through the results, but they will also be joined by Clive Bolton and Joseph Pinto, the CEO of our Life and Asset Management businesses, respectively. So it's going to be slightly longer than usual, but don't worry, we'll keep it still short and crisp to about 45 minutes, 50 minutes, and then after that, we'll move on to Q&A.
So without further ado, Andrea.
Thank you. Good morning, and welcome to M&G's full-year results. It is a pleasure to be here with you. Today, I am joined by Kathryn, who will cover our strong financial performance, and by Joseph Pinto and Clyde Bolton, who run our Asset Management and Life segments, respectively. They will share more color on the progress being made and explain the contribution of our business to the growth ambition for M&G and
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