M&G shares climbed 1.8% to 221.6p in late morning trading on Thursday, despite a widened IFRS post-tax loss to £1 billion in HY1 2022 compared to £248 million the last year.
The company announced an adjusted operating profit drop to £182 million from £327 million as a result of current market conditions.
M&G reported an assets under administration fall to £348.9 million against £370 million, linked to adverse market movements, with net client inflows of £1.2 billion from £2 billion in outflows the year before.
Meanwhile, the group confirmed a total capital generation slide to £24 million from £869 million, alongside a Shareholder Solvency II coverage ration increase to 214% compared to 198% year-on-year on the back of increasing yields and falling equity markets.
“This is an encouraging set of results and provides evidence that M&G is continuing to build momentum. Improved client flows underpinned a resilient operational and financial performance despite a period of volatility when many investors reduced their exposure to markets,” said M&G CEO John Foley.
“The current macro-economic environment is creating uncertainty in the markets in which we operate.”
“However, our diversified sources of earnings and strong shareholder Solvency II coverage ratio protects our ability to invest in the business and, as today’s interim dividend of 6.2 pence per share shows, deliver attractive shareholder returns.”
M&G recommended a 2% dividend hike to 6.2p per share for the financial period.