M&G confirms long-term targets

M&G said on Thursday it remained on track to meet its financial targets, despite adopting new accountancy standards.

The IFRS 17 global accounting standards for insurers came into effect at the at the start of this year. But the UK blue chip said their implementation would not change its strategy, solvency position, capital management framework or dividend policy.

Instead, the savings and investment manager said it remained committed to generating £2.5bn operating capital over the 2022-24 period, as well as meeting its longer term targets.

These include achieving £200m of cost savings and delivering more than 50% of the group’s earnings from asset management and wealth operations, both by the end of 2025.

M&G also restated some of its 2022 numbers because of the new standards.

The IFRS shareholder equity rises by more than 50% to £4.3bn, mainly due to the attribution to investors of around 10% of the with-profits fund IFRS surplus. And adjusted operating profits for the 2022 full-year increase by 4%, to £552m, driven by a change in profit signature of the annuities and with-profits businesses as well as the revised methodology.

M&G is due to publish 2023 interim numbers on 20 September.