Andrea Rossi: With-profits BPA will be a key competitive advantage in the UK retirement market
M&G is set to launch a with-profits bulk purchase annuity (BPA) offering in 2026, the firm says.
The firm's 2025 half-year results – released this morning (3 September) – said that, since re-entering the BPA market two years ago, it had completed £1.8bn of deals and continued to develop innovative solutions such as its value-share BPA which it launched last year with the announcement of a £500m deal with a unnamed private corporate sponsor.
M&G said it was continuing to strengthen its capabilities in this area – improving its ability to quote on deals and implementing longevity reinsurance for new business.
It said it had written £300m of new BPA business so far this year, including a £205m buy-in transaction with the Huntsman Pension Scheme announced in July.
M&G group chief executive Andrea Rossi said the firm would continue to broaden the product offering in its life business with the planned launch of its with-profits BPA early next year – a solution he said would be "a key competitive advantage in the UK retirement market".
The insurer has also re-entered the retail annuity market this year with a fixed-term annuity product and said it will expand the range further in 2026.
M&G's half-year results reported its adjusted operating profit before tax remained stable at £378m, compared to £375m in the same period of 2024.
Its asset management business reported net inflows of £2.6bn, up from £500m net outflows this time last year. International clients now comprise 58% of asset management assets under management, up from 37% five years ago.
Asset management revenue totalled £514m in H1 2025, up from £499m in H1 2024.
Recent deals also aided the firm with a long-term strategic partnership with Dai-ichi Life expected to add $6bn (£4.48bn) in business over the next five years.
M&G's private markets arm now runs assets of some £77bn, having acquired a majority stake in P Capital Partners, a Stockholm-based private credit manager, earlier this year.
Rossi added: "The balanced and diversified nature of our business model, as well as the momentum across our asset management and life businesses, gives me confidence for the future.
"We continue to build on our strong foundations to deliver long-term growth for our customers, clients and shareholders, which is high-quality and diversified across products, segments, and markets."
