(Reuters) -Britain’s M&G reported a surprise growth in annual profit on Wednesday, as aggressive cost cuts and growth in its asset management business helped the company ease pressure from high inflation and interest rates in recent years.
While M&G works on simplifying operations and implementing its ongoing cost-cutting plan, policies around high interest rates and inflation – which hurt the company’s profits – are fluctuating amid concerns over mounting geopolitical tensions.
Still, the company, which also provides corporate pensions insurance, increased its dividend for 2024 by 2% and unveiled new targets for profit, capital, and savings, highlighting confidence in its future prospects.
“We are now moving into a new phase for the Group, where we will deliver sustainable and diversified growth across Asset Management and Life,” CEO Andrea Rossi said in a statement.
M&G forecast that its operating profit before tax is expected to grow annually at 5% or more on average over a three-year period to the end of 2027, and projected 230 million pounds ($298 million) in savings by the end of this year.
Its total adjusted operating profit before tax for 2024 rose 5% to 837 million pounds. Analysts were expecting it to dip to 769 million pounds from 797 million pounds in 2023, as per a company-compiled poll.
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(Reporting by Pushkala Aripaka and Yamini Kalia in Bengaluru; Editing by Mrigank Dhaniwala)
