UK's M&G posts higher inflows on growth in asset management, bulk annuity

What happened

M&G reported £1.8 billion in net inflows from open business in the third quarter, including £0.7 billion for asset management. It expects full-year bulk annuity sales to exceed £2.5 billion, up more than 60% year on year, with £0.8 billion of further deals in exclusivity.

Confirmed

Global impact / market context

Inflows and bulk annuity sales can support M&G’s business by bringing in assets to manage and adding pension-related contracts. However, the article says total assets under management and administration fell as adverse market movements outweighed inflows, showing that investment values can offset business growth.

Analyst inference

The reported inflows came from UK and international institutional clients, while M&G cited its Daiichi Life tie-up and push into bulk annuities as growth drivers. Yet assets under management and administration slipped from June to September, so flows alone did not lift the total.

Confirmed

What to watch

1. Check whether M&G reports further bulk annuity deals moving from exclusivity to completion; the article says £0.8 billion of additional deals were still at that stage. Analyst inference
2. Compare reported full-year bulk annuity sales with M&G’s expectation of more than £2.5 billion and its stated year-on-year increase of over 60%. Analyst inference
3. Watch whether future net inflows from institutional clients outweigh market movements, since adverse movements more than offset inflows in the quarter described. Analyst inference

Evidence

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