M&G’s adjusted operating profit before tax has dropped to £721 million in 2021 from £788 million in 2020, while capital generation reached a high of £1.8 billion.
This comes as the company pushed to meet its demerger targets ahead of schedule, achieving a capital generation of £2.8 billion over two years, and reaching its £145 million annual shareholder cost savings a year premature.
In a media statement, chief executive of M&G John Foley spoke of the firm’s position following the activity of 2021, stressing the meeting of demerger targets and announcing the firm’s new buy-back programme.
He said: “It has been another year of robust operational and financial performance, as we have delivered on all our demerger commitments, including total capital generation of £2.8 billion over two years, well ahead of our original target.
“In light of this performance and our strong capital generation we are able to announce today £500 million to be returned to shareholders by way of a buy-back programme, expected to start shortly.
“Together with dividends paid, we will have returned £1.8 billion of capital to shareholders, equivalent to 32% of M&G’s market value at demerger. Alongside this, we have achieved our annual shareholder cost savings target of £145 million one year ahead of schedule.”
The results also showed the shareholder solvency II coverage ratio strengthened to 218%, the highest since the demerger, and a year-on-year increase in assets under management and administration of 0.8%.
Early 2022 saw the firm strengthened by its acquisition of Sandringham Financial Partners and that of TCF Investment, along with a partnership with the digital wealth platform Moneyfarm.
2022 will also see the firm expand into Europe, launching Future+ in Italy, a version of the UK PruFund proposition.
Edward Braham is set to become chair of the board as of 14 March, and Kathryn McLeland will become chief financial officer in May, subject to regulatory approval.
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