M&G plc has reported its half-year 2023 results, highlighting good operational and financial performance and progress against core strategic priorities. The company achieved net client flows, excluding Heritage, of £0.7 billion, compared to £1.2 billion in the same period last year. Adjusted operating profit increased to £390 million from £298 million in HY 2022, while operating capital generation rose to £505 million from £433 million. Dividends per share also increased to 6.5p from 6.2p in HY 2022. The shareholder Solvency II ratio remained at 199%, the same as FY 2022.
M&G CEO Andrea Rossi expressed confidence in the company's ability to deliver attractive outcomes for clients and shareholders. He highlighted progress in all three pillars of the company's strategy, including maintaining financial strength, mobilizing the Transformation program to simplify the business and improve client outcomes, and delivering growth with positive net client inflows.
In terms of growth, M&G achieved positive net client flows of £0.7 billion, excluding Heritage, for the third consecutive year. Gross inflows to PruFund UK reached £3.3 billion, the highest for a six-month period since 2019. The company also re-entered the Defined Benefit pension market through two targeted deals with a combined premium of £617 million. Net client inflows in Wholesale Asset Management were £1.3 billion, while Private Markets saw net client inflows of £0.7 billion.
M&G's Transformation and Simplification program showed good momentum, with cost savings initiatives expected to deliver a £50 million reduction on the 2023 cost base. The company completed a voluntary redundancy scheme, with approximately 200 colleague exits expected in the final quarter of 2023 and early 2024. Clive Bolton, Caroline Connellan, and Joseph Pinto were appointed as CEOs of Life Insurance, Wealth, and Asset Management, respectively.
Financially, M&G reported adjusted operating profit before tax of £390 million, up 31% from HY 2022. The company achieved an IFRS profit before tax of £75 million, compared to an IFRS loss before tax of £1,143 million in the same period last year. Operating capital generation increased to £505 million, with a strong underlying contribution of £352 million. The shareholder Solvency II coverage ratio remained at 199%.
Looking ahead, M&G aims to continue its progress in transforming the business and remains well positioned to navigate the uncertain economic climate. The company will focus on business simplification and transformation, aligned with client-driven values, to unlock growth and selectively invest. M&G's results for the first half of 2023 support its confidence in delivering strategic objectives and financial targets.