U.K.’s Asset Manager M&G Soars on Buyback, Dividend, Higher Profit

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Investing.com – Stocks of U.K.’s insurer and asset manager M&G (LON:MNG) surged 11.5% in London Tuesday after it revealed a 500 million pound($ 654.30 million) share buyback offer to shareholders, supported by strong capital generation in the business.

The financial services firm will also pay a second interim dividend of 12.2 pence per share, taking the total for the year to 18.3 pence.

Plans to return more capital to the shareholders have come in after the life insurer achieved a total capital generation of 2.8 billion pounds over two years. The company, which split off from Prudential in 2019, is targeting the operating capital generation of 2.5 billion pounds in three years through 2024.

The firm’s operating profit in 2021 was 721 million, down 9%, but ahead of the forecasts. Changes in longevity assumptions hurt profit.

Banking and finance companies have had a good run in the last two years, even though 2021 was relatively volatile, while interest rates began to firm up. Most businesses grew, from lending to wealth management to advisory.

Total assets under management gained 0.8% to 370 billion pounds, mostly owing to a positive market. Net client inflows were 600 million pounds.

Edward Braham, formerly the senior partner at law firm Freshfields Bruckhaus Deringer, will become Chair of the Board March 14 onward, the company said.