LONDON (Reuters) - British insurer and asset manager M&G (L:MNG)'s first-half operating profit fell sharply on Wednesday, hit by market moves and client outflows as a result of the coronavirus pandemic, but results came in above analysts' expectations.
Adjusted operating profit fell 57% to 309 million pounds ($403 million), slightly ahead of the 299 million pounds seen in a company-supplied consensus poll.
M&G, which was spun out by parent Prudential (L:PRU) last year, reported 157 million pounds of head office and debt interest costs and said it had also enjoyed one-off demerger benefits last year from changes to longevity assumptions and staff pensions.
Assets under management and administration totalled 339 billion pounds at end-June, also above a forecast 329 billion.
M&G saw net outflows in savings and asset management of 4.1 billion pounds in the six months to end-June. Retail asset management outflows totalled 7.7 billion pounds, but were partly offset by inflows of 2.8 billion pounds into institutional asset management and 800 million pounds into retail savings.
"This is not the backdrop we would have wished as a newly independent company," Chief Executive John Foley said, adding it was "a resilient performance in extremely difficult times".
M&G said it would pay an interim dividend of six pence per share, in line with forecasts.