M&G’s platform and recommendation companies noticed a rise in annual pre-tax losses to £32m in 2023 (2022: £24m).
M&G mentioned the losses had been pushed by a rise in prices owing to inflation and a one-off intangible asset write-off within the first half of 2023 of £7m, in response to its annual report launched this morning.
Adjusted revenue for the wealth arm was offset by a robust efficiency from its PruFund enterprise, with the division reporting a £22m enhance in adjusted working revenue earlier than tax to £180m.
Andrea Rossi, group CEO of M&G, mentioned: “All through 2023 we continued to see sturdy demand for our key propositions from our wealth shoppers with PruFund Wealth gross sales growing by 17%, reaching the very best stage since 2019.
“We see vital alternatives to develop our wealth enterprise over the approaching years with over 12 million individuals within the UK at present looking for help to attain monetary safety. Shoppers need accessible recommendation, assist in planning for all times occasions, and a diversified multi-asset publicity that may scale back the volatility of their investments.
“By specializing in increasing our recommendation capabilities by way of our in-house Recommendation Coaching Academy and leveraging different multi-asset options to capitalise on progress alternatives, we count on to enhance effectivity, shopper supply, and monetary outcomes in 2024 and past.”
Total, M&G’s wealth division noticed internet shopper inflows stay regular at £0.2bn (2022: £0.2bn).
Wealth AUMA elevated to £87.1bn (2022: £83.4bn) pushed by optimistic market and different actions of £3.5bn.
As a complete, in 2023 M&G noticed £1.1bn in internet shopper inflows, an enchancment on the £0.2bn reported in 2022.
Adjusted working revenue earlier than tax additionally rose 28% from £625m in 2022 to £797m in 2023.
M&G has been altering its working mannequin with the intention to reduce prices by £200m by 2025 (from 2022). To date £73m in financial savings have been achieved, in response to the annual report.
Mr Rossi mentioned M&G had made “good momentum” within the first 12 months of its transformation programme, “making a leaner and extra environment friendly organisation and enhancing our skill to serve shoppers, scale back prices and unlock progress.”
Among the financial savings had been made by way of a voluntary redundancy programme, alongside lowering its UK workplace spend by 15%.