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M&G plc (OTCMKTS:MGPUF - Get Free Report) was the target of a significant drop in short interest in December. As of December 15th, there was short interest totaling 278,871 shares, a drop of 43.5% from the November 30th total of 493,754 shares. Based on an average trading volume of 867 shares, the days-to-cover ratio is
M&G remains a compelling long-term income play, offering a 7.8% yield and a progressive dividend policy despite recent share price gains. Concerns about dividend sustainability are overblown; net outflows are minor relative to assets under management, and the dividend continues to grow. The new strategic partnership with Dai-ichi Life HD brings growth potential and a supportive shareholder, further strengthening M&G's investment case.
Shares in M&G surged more than 6% Friday, reaching their highest level in over a year, after the British financial group announced a long-term partnership with Japanese insurer Dai-ichi Life. As part of the deal, Dai-ichi Life will acquire a 15% stake in M&G, making it the company's largest single shareholder.
40 million GBP in incremental savings seem to be possible according to management into the end of 2025. Cost savings have been a driver of operating profit growth at the asset management arm, with AUMs resilient. Thanks to recent BPA deals they are managing to grow the book again and this will start driving a return to growth in the life/pension insurance business.
M&G plc (OTCPK:MGPUF) Q4 2024 Earnings Call March 19, 2025 5:30 AM ET Company Participants Luca Gagliardi - Investor Relations Paolo Rossi - Chief Executive Officer Kathryn McLeland - Chief Financial Officer Clive Bolton - Chief Executive Officer, M&G Life Insurance Joseph Pinto - Chief Executive Officer, M&G Asset Management Conference Call Participants Nasib Ahmed - UBS Farooq Hanif - JPMorgan Abid Hussain - Panmure Liberum Thomas Bateman - Mediobanca Andrew Baker - Goldman Sachs Dom O'Mahony - BNP Paribas Exane Andy Sinclair - Bank of America Andrew Crean - Autonomous Larissa Van Deventer - Barclays Capital Luca Gagliardi Good morning, everyone, and welcome to M&G's 2024 Full Year Results Presentation. Today, as usual, we'll have Andrea and Kathryn going through the results, but they will also be joined by Clive Bolton and Joseph Pinto, the CEO of our Life and Asset Management businesses, respectively.
M&G's performance benefits from cost improvements but faces challenges from reduced returns on excess assets due to rate changes. AUM growth and cost control have lifted operating profits in AM, but the insurance business model is less attractive in a rate-cutting environment. CSM release rates (amortisation) is down as "persistency" is observed, in other words pensioners living longer than expected in their insured group.
M&G benefits in several ways from higher rates due to its previously run-off insurance businesses. The company has a generous dividend policy, that should be used as a measure of their underlying profit yield, which we think can be enduringly supported and grow a little. While the underlying AM business is nothing to write home about, the exposure to higher rates, which we expect to remain structurally higher over the next decade, is a plus.
Dividend yield is actually a fairly reliable indicator of value and future returns. There is an elevated risk of dividend cuts and suspensions when yields are so high, but in many cases, that seems unlikely. The UK does offer rich pickings to dividend investors.
UK life insurers have underperformed the wider sector and the market so far this year due to investor concerns that commercial real estate (CRE) exposure will negatively affect capital positions, but analysts at RBC Capital Markets presented 10 reasons why this was wrong. While being sympathetic to the view that there “could be complications on the horizon” for commercial real estate investors, the UK life insurers have “a number of underappreciated protections in place”, the analysts said.
Much has changed since the last update in September, with banks now hogging many of the top spots. Bank shares have gone down in the last couple of weeks and their dividend yields have gone up, because several banks have recently failed.
M&G PLC (OTCPK:MGPUF) Q2 2022 Earnings Conference Call August 11, 2022 5:00 AM ET Company Participants Luca Gagliardi - Head, IR John Foley - Group CEO & Executive Director Jonathan Daniels - CIO Clare Bousfield - MD, Retail & Savings Kathryn McLeland - CFO & Executive Director Conference Call Participants Rhea Shah - Deutsche Bank Farooq Hanif - JPMorgan Chase & Co. Dominic O'Mahony - BNP Paribas Exane Andrew Crean - Autonomous Research Ashik Musaddi - Morgan Stanley Nasib Ahmed - UBS Alan Devlin - Goldman Sachs Group Mandeep Jagpal - RBC Capital Markets Larissa Deventer - Barclays Bank Andrew Sinclair - Bank of America Merrill Lynch Operator Welcome to the M&G plc 2022 Half Year Results Q&A session. [Operator Instructions].
U.K. investment manager M&G just increased its dividend, albeit only by a small amount.
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