(Reuters) -British insurer and asset manager M&G missed market expectations for half-year adjusted operating profit on Wednesday, but reported net inflows of 2.6 billion pounds ($3.51 billion),
M&G Falls Short of Profit Expectations Despite Record Inflows
M&G's Financial Performance Overview
By Yamini Kalia
Impact of One-Off Charges
(Reuters) -British insurer M&G missed market expectations for half-year adjusted operating profit on Wednesday due to some one-off charges, despite incurring record net inflows of 2.6 billion pounds ($3.5 billion) in its asset management business.
Investor Sentiment and Market Conditions
The company, currently implementing a turnaround strategy, took one-off charges in both its asset management and life insurance units, which masked the 5% growth promised in March, CEO Andrea Rossi told Reuters.
Future Growth Prospects with Dai-ichi
Rossi remained optimistic about the business, citing strong investor interest in European equities as clients shift portfolios amid falling interest rates and improving market conditions.
"It's like a renaissance of Europe," he said, echoing other wealth managers, who have enjoyed a boost in client activity after the initial market volatility of April triggered by U.S. trade policies subsided.
M&G shares were down about 1% at 254.3 pence by 0814 GMT. They have risen about 29% so far this year.
Analysts at RBC Capital Markets and Jefferies gave a positive assessment of M&G's results, noting the company's growing flows and the expected returns from its partnership with Japanese insurer Dai-ichi Life.
In May, Dai-ichi took a 15% stake in M&G, with the partnership expected to deliver $6 billion of new business over the next five years and help M&G grow in Asia.
M&G recorded adjusted operating profit before tax of 378 million pounds for the six months ended June 30, compared with 375 million pounds a year ago.
That came below analysts' consensus of 398 million pounds, according to a company-compiled poll.
Total net outflows stood at 2.5 billion pounds at the end of the first half of the year, beating expectations of 3.1 billion pounds.
($1 = 0.7402 pounds)
(Reporting by Rishab Shaju and Yamini Kalia in Bengaluru; Editing by Subhranshu Sahu, Mrigank Dhanwiala and Alex Richardson)
