Andrea Rossi: We are seeing growing momentum across M&G
M&G says it is “on track” to launch its with-profits bulk purchase annuity (BPA) in the first quarter of 2026.
In the firm's third quarter trading update published this morning (5 November), the asset manager and life provider said it was "progressing well" with the new product, one it announced in September would be launched early next year and would be a solution that would provide it with "a key competitive advantage in the UK retirement market".
M&G's Q3 update also revealed it had completed £300m of BPA transactions in the quarter – up from £200m in the first half of the year – and said it expected to maintain a "good level of volumes" in the final quarter of the year.
Deals publicly announced by the business during the quarter include a £96m buy-in with an unnamed scheme in October.
Overall, the firm said group assets under management and administration had increased 3% in the quarter to £365bn – growth it said was supported by £1.8bn of net inflows from open business across asset management and life.
It added it had seen continued strong net inflows from external clients of £1.5bn, bringing the YTD total to £4.1bn – adding both its institutional and wholesale franchises reported net inflows, delivering £0.8bn and £0.7bn respectively in Q3.
And it said it expected momentum in its asset management business to continue in coming months, as it began to generate new business flows through its partnership with Dai-ichi Life.
Group chief executive officer Andrea Rossi commented: "After a strong first half, we have maintained positive momentum, continuing to deliver against our growth priorities."
He added: "Our asset management performance was particularly pleasing as we delivered £1.5bn of net inflows from external clients, with good client demand across asset classes and geographies.
"Despite a volatile macroeconomic environment, we are seeing growing momentum across M&G, as we continue to execute on our strategy and deliver strong long-term value to both clients and shareholders."
M&G re-entered the BPA market in 2023 and has completed several transactions since, including a £309m buy-in with the NSK scheme and a £111m BPA deal with a scheme sponsored by an unnamed UK asset manager.
