London-headquartered M&G has just released its financial results for 2024.

M&G has just announced that it is moving to a progressive dividend policy. In light of its confidence in the outlook, the firm is increasing the dividend cash spend for the first time since it listed in 2019.

In 2024, the total dividend per share increased by 2 per cent. M&G also posted an adjusted operating profit before tax of £837 million ($1,085 million) in 2024, up 5 per cent on 2023 levels, as profits from its asset management business climbed 19 per cent, as well as stable results from the Life and Corporate Centre segments. However, on a statutory basis, the group had a loss after tax of £347 million from a £309 million profit last time, reflecting larger losses relating to short-term fluctuations in investment returns and mismatches arising on application of IFRS 17, although it benefited from lower restructuring costs.

M&G also reported resilient operating capital generation of £933 million, beating its upgraded target. 

Looking ahead, the firm said it is moving to a new phase, where it will deliver sustainable and diversified growth through its business model across asset management and life.

In line with this ambition, it is announcing two new financial targets. This includes a new target for cumulative operating capital generation, excluding new business strain, of £2.7 billion by the end of 2027. It is also introducing a new target for adjusted operating profit before tax, annual growth of 5 per cent or more on average over the three years to the end of 2027. The firm said it is continuing to make good progress with its other financial targets, in particular on the cost savings target which it has once again upgraded, from £220 million to £230 million of cumulative savings by the end of 2025.

Meanwhile, net flows were minus £1.9 billion in 2024, and assets under management and administration (AUMA) increased by £2 billion to £346 billion due to positive markets. Two recent acquisitions in European non-sponsored private credit and value add real estate investment are in also line with the firm’s ambition in European private markets.