M&G, the London-based investment manager and insurer, reported robust inflows in the first quarter of 2023, buoyed by strong performance in its asset management division and a strategic partnership with Dai-ichi Life. The company saw net client inflows of £1.3 billion in the first three months of the year, compared with £0.8 billion in the same period last year.
Asset Management Performance
M&G's asset management arm attracted £1.1 billion in net inflows during the quarter, driven by demand for its fixed-income and multi-asset strategies. The division's assets under management rose to £256 billion, up from £249 billion at the end of 2022. Chief Executive John Foley attributed the growth to the firm's focus on delivering consistent returns and expanding its product range.
Dai-ichi Life Partnership
The partnership with Dai-ichi Life, Japan's second-largest life insurer, contributed significantly to the inflows. Under the agreement, Dai-ichi Life has committed to investing in M&G's global fixed-income funds, adding £200 million in new assets during the quarter. The collaboration, announced last year, aims to leverage M&G's investment expertise to serve Dai-ichi's policyholders.
Overall Financial Health
M&G also reported a 5% increase in operating profit before tax, reaching £345 million, supported by higher fee income and cost controls. The company's solvency ratio stood at 180%, well above regulatory requirements. Foley expressed confidence in the firm's outlook, citing a diversified business model and strong client relationships.
The positive results come amid a challenging environment for asset managers, with market volatility and rising interest rates. M&G's shares rose 2.3% on the London Stock Exchange following the announcement.
