M&G books £1.7 billion of with-profits bulk annuities in eight months

M&G has completed £1.7 billion of bulk annuity deals so far this year through BPA Plus, the with-profits proposition launched in February, already exceeding its total annuity volumes for 2025, chief executive Andrea Rossi said at half-year results on 3 September. The figure is a running total to end-August: £0.6 billion of inflows came in H1, with a further £1.1 billion written over July and August.

"This year, all Annuity new business was written by the With-Profits Fund, through our BPA Plus solution", chief financial officer Kathryn McLeland told analysts, with the fund retaining roughly 80% of the economic interest after reinsuring around 20% to the shareholder balance sheet. New business strain of £20 million was £15 million better year-on-year despite M&G writing twice the volume of BPAs, which McLeland attributed to the capital-light structure. Annuities profit was still down 7% year-on-year to £105 million, McLeland said, reflecting March guidance on lower expected returns on surplus assets, which reduced to 4.5% from 5.2% last year.

Rossi said M&G expects "to scale our sales by at least 50% this year, remaining disciplined on pricing, and to achieve our target volumes of 3 to £4 billion in 2027". Asset Management, meanwhile, took net inflows from external clients of £2.2 billion, across both Wholesale and Institutional clients. M&G reported net inflows of £1.3 billion in private markets, with AUMA of £83 billion. Rossi cited good client demand, a £7.8 billion capital queue in private markets and new business from Daiichi as the basis for further growth in Asset Management.