M&G, an international savings and investments business, has just released its financial results for 2022.

After a difficult year, M&G announced that its assets under management and administration fell by 7.6 per cent in 2022, compared with the previous year, reaching £342 billion ($408 billion), predominantly driven by adverse market movements.

According to the firm, adjusted operating profit before tax was also down by 26.6 per cent, reaching £529 million, from £721 million in 2021, affected by non-cash items from duration mismatching losses in the annuity portfolio and foreign exchange losses on its dollar denominated subordinated debt.

Nevertheless, there were positive net client flows in asset management and wealth in a year of significant market uncertainty, and the firm said it returned nearly £1 billion to shareholders through dividends and share buy-back.

Andrea Rossi, group chief executive officer, said: “We achieved positive net client flows in asset management and wealth for the second year in a row driven by the ongoing turnaround in wholesale asset management and increased client inflows into PruFund.” 

“Adjusted operating profit has been impacted by market volatility but benefited from wealth's contribution more than doubling, as we continue to invest in the propositions offered by this business. We have also made a solid start to the achievement of our operating capital generation target of £2.5 billion by the end of 2024,” he continued.

“We now have a clear strategy to build on the inherent strengths of our differentiated business model. We will maintain our financial strength, simplify our business and deliver profitable growth,” he said. 

“Looking ahead, despite the uncertainty of the external environment, our diversified business model and strong financial position will underpin our ability to invest in the growth of our business and continue to deliver attractive shareholder returns,” he added.