Annuity boom fuels net inflow growth at M&G

M&G says it received £1.8 billion of net inflows from open business in its third quarter helped by a booming annuity business.

In Q3 figures published today, it said the company continued to see growth in Q3 after a good first half.

The company saw strong momentum in annuities with £1.8 billion of inflows year-to-date, including £1.2 billion in the quarter. It expects full-year sales to exceed £2.5 billion, up 60% year on year.

Assets Under Management and Advice overall were £385bn as at 30 September compared to £387bn in the first half, a drop of £2bn as market volatility affected asset prices.

PruFund net flows were flat in Q3 but improved on H1, helped by the launch of PruFund on the Scottish Widows’ platform which supplied over £100m of net inflows. M&G says the PruFund, one of its largest funds, will launch on a second unnamed platform in the new year.

Andrea Rossi, group chief executive, said in Q3 the company had delivered £1.8 billion of net inflows from open business, taking the year-to-date total to £4.2 billion. This was helped by growth in Asset Management and Life divisions.

Mr Rossi said: “In a volatile external environment, we continued to grow and make good progress against our strategic objectives. The inflows we generated, reflect the resilience of our business model, and the attractiveness and diversification of our offering. Looking ahead, we remain confident in our ability to deliver long-term value for our clients and shareholders.

“In Life, I am particularly pleased with the success of BPA (Bulk Purchase Annuity) Plus, our With-Profits BPA solution, as we delivered inflows of £1.2 billion in the quarter, taking the year-to-date sales to £1.8 billion.

“With a further £0.8 billion in exclusivity, we are confident that we will end the year with more than £2.5 billion of inflows, growing more than 60% year-on-year. This strong result demonstrates our success in reigniting our Life business, where we expect further growth in 2027.