M&G Plc (7MP) Q2 2026 Earnings Report

The call was strongly positive, characterized by record first-half operating profit, improving Asset Management and Life performance, strong net inflows, growing capital-light earnings, robust solvency, and confidence in achieving the group's 2027 and 2030 targets. The main negatives were lower operating and underlying capital generation, declining annuity profit, a 1-basis-point private markets margin reduction, higher year-on-year Asset Management costs, and a stated future ground-rent impact. Overall, the highlights significantly outweighed the lowlights.

M&G said it is on track to deliver low double-digit profit growth this year, achieve the GBP 2.7 billion cumulative capital generation target, and reach a 70% cost-income ratio by the end of next year, with Asset Management costs expected to stay in line with the first six months of the year and corporate center costs roughly GBP 10 million higher; it expects further improvements in operating leverage, management actions of GBP 100 million-GBP 200 million annually, at least GBP 50 billion attracted through With-Profits solutions by 2030 generating at least GBP 100 million of annual operating profit by 2030, BPA+ sales to scale at least by 50% this year and next year toward target volumes of GBP 3 billion-GBP 4 billion in 2027, and PruFund to deliver improved inflows in the second half, while it expects to operate above the top of its target Solvency II range over the medium term, with leverage guidance of around 30%, and a modest GBP 10 million AOP impact from ground rents at the end of 2028 onwards.