M&g Share Discussion Threads

[helen troy] 21/3/2024 07:18

Ha ha Ron. I'm not selling before the divi, and then I'll give it time to recover some of the xdivi drop.

[tornado12] 21/3/2024 07:10

Positive numbers across the board is what I see with divi slightly higher and maintained. Do me ! GLA

[skinny] 21/3/2024 07:00

Financial strength

- Adjusted operating profit before tax of £797 million was up 28% year-on-year (2022: £625 millionii), reflecting a resilient performance in Asset Management, and improved contribution from Life, Wealth and Corporate Centre.

- IFRS profit after tax of £309 million improved significantly (2022: £2,055 million lossii), benefitting from higher adjusted operating profit and a meaningful reduction in losses relating to short-term fluctuations in investment returns.

- Operating change in contractual service margin (CSM) of £355 million was up 175% year-on-year (2022: £129 million), primarily due to higher expected real-world return on with-profits business CSM following the increase in risk-free rates during 2022.

- Operating capital generation of £996 million was also up by 20% year-on-year (2022: £821 million), supported by a strong underlying capital generation of £752 million (2022: £628 million) and other operating capital generation of £244 million (2022: £193 million).

- Over 2022 and 2023, we generated £1.8 billion of operating capital, which puts us in a very good position to achieve our three-year cumulative operating capital generation target of £2.5 billion by end of year.

- Shareholder Solvency II coverage ratio improved to 203% (2022: 199%).

- The 2023 total ordinary dividend of 19.7 pence per share (2022: 19.6 pence per share) is in line with our policy of stable or increasing dividends. The second interim dividend of 13.2 pence per share is payable on 9 May 2024.

[skinny] 20/3/2024 18:19

Helen - as per the current timetable, XD is 28 March 2024.

[1jat] 20/3/2024 18:06

I am feeling a little apprehensive given the beating handed out to Pru today on apparently decent results.
MNG pays a decent dividend - and a modest rise is nailed on if only through the completion of the buy back last year.
Things to look for:
Has the asset manager turned a corner - has third party AUM started to rise on the back of better performance and have cost reductions improved profitability?
Wealth - clearer strategy for the advice and platform elements (platform rumoured to be for sale). Effect of colts of living on new PruFund business.
Life insurance - profitability metrics on the BPA deals, assumption changes on the back book and effect of inflation v cost reductions.
Centre: Capital status (most SCRs are down by up to 10% in this cycle, MNG may be more bc of the buy back), debt/liquidity approach (they can redeem debt should they want to, but will they indicate they will roll it over). Will they start a new buy back? Market reactions to those that have/have not flagged a BB suggest a modest BB would be a good idea.

[helen troy] 20/3/2024 15:27

Dealing and margin costs prohibit that for me klotzak

[gbh2] 20/3/2024 15:21

A good dividend will make the run up to ex divi date interesting.

[klotzak] 20/3/2024 15:20

Well , perhaps sell today and buy back tomorrow, Helen? 50:50. Up until the day before divi you can buy and take the divi later, but lose the divi amount first thing XD.

[helen troy] 20/3/2024 15:18

Tomorrow's price depends on the results imho. There could be wild swings depending on differing views of results, good, bad, indifferent.

[luderitz] 20/3/2024 15:08

Ah hence todays rise then, will be down tomorrow then I expect.

[helen troy] 20/3/2024 14:51

Results tomorrow. x-divi in about a week.

[helen troy] 20/3/2024 14:49

My reading is it will go x divi within a week and drop 13 p or so then. i don't see how you can sell and get the divi.

[orchestralis] 20/3/2024 12:49

Decided to sell today, as I think it may drop back after results. I will but back in for divi pre ex div.

[helen troy] 19/3/2024 04:50

2 days to the results. Good luck all

[luderitz] 18/3/2024 18:21

This is my most successful share that I have ever owned, only because it was spun off of Prudential I may add 😀

[1jat] 18/3/2024 16:12

Re the IFRS17 point - this accounting benefit is the earlier recognition of profits from the WP Fund as they arise rather than at the point of claim by the policyholder.
So MNG may find itself paying tax on profits that is had not received…and distributable profits that have not been converted to cash. Liquidity management is more important for MNG than some of its competitors….but the comparable number is the SCR which is what enables insurers to declare dividends / make capital returns.
They have a self declared target of getting debt to less than 30% of surplus assets - it grew to 36% because they paid £500m to shareholders via a buy back.
How they approach liquidity and debt management could be important for how IIs assess MNG.

[pete160] 18/3/2024 11:39

Scobak - I think you're getting confused between MNG plc and the investments it manages. From a January press release:

M&G plc has acquired a majority stake in sustainable housebuilder Greencore Construction on behalf of policyholders in its £ 143 billion Prudential With Profits Fund.
M&G also plans to invest up to half a billion pounds over the next three to five years in sustainable new developments of private and affordable housing, in partnership with Greencore

Even 500 Ml in 143 Bn is only c. one third of a percent.
and quite frankly if there is demand from investors for a spotted pink pig fund, then I'm glad that MNG are able /willing to oblige if they can make money from running it.

[scobak] 18/3/2024 11:06

'sustainable' 'green' 'carbon friendly'.
Jumped on the woke bandwagon and likely to get poor return.
Oh dear. Will have to monitor more closely in case more of this
environmental rubbish becomes the norm.

[scruff1] 18/3/2024 07:24

The Times: M&G has injected a further £30m into a sustainable housebuilder, Greencore, to help fund an ambition to construct 10,000 carbon-friendly homes over the next decade.

[skinny] 13/3/2024 11:04

The yield chart from the above article.



"A technical but critical point is that M&G is also one of the few insurers to have benefited from the transition to the new accountancy rule IFRS17, which affects how insurance contracts are reported, as it has allowed the company to bring forward profit recognition in this area. The rule has had the opposite impact on the annuity portfolios of many of its rivals, where profit recognition is being deferred."

[tuftymatt] 13/3/2024 07:54

Excellent and let's hope it helps to draw a 230 support line.

Good luck all 👍🏻

[masurenguy] 13/3/2024 07:11

"Shares are trading at an undemanding 11 times forward earnings, cheaper than rival Abrdn at 13 and at a similar level to Schroders. M&G’s path toward growth still looks a little unclear. Altogether, the group controls around £332 billion, which makes it a relatively small fish in a vast and competitive sea of cash. Investors should not expect returns to blow the lights out, but for those looking for reliable payouts and steady returns, this stock looks a good fit.
Advice Buy
Why: High and well-covered dividend suits income investors"

[unastubbs] 13/3/2024 06:18

A steady ship for income investors

Tempus in The Times

[helen troy] 12/3/2024 15:44

It's beaten that today Skinny :-)