As announced by M&G at the time of demerger an Ordinary Dividend of 11.92 pence per share will be paid on 29 May 2020. Consistent with their dividend policy the expected 2019 Ordinary Dividend is broadly two-thirds of the amount that the Board would have anticipated paying in respect of the full year 2019 as a standalone business.
The Board has agreed to pay a one-off demerger-related Special Dividend of 3.85 pence per share. This is in recognition that for the majority of the 2019 financial year, the Company was operating without incurring certain costs, e.g. debt interest costs, which it would expect to bear in future and which have been allowed for in determining the initial level of ordinary dividend. This will also be paid on 29 May 2020.
Other financial highlights include:
- Assets under management and administration increased to £352 billion, principally reflecting strong investment returns over the year
- Modest net client outflows in Savings and Asset Management of £1.3 billion, with net client inflows into UK Retail Savings, which includes PruFund, mostly offsetting net client outflows in Retail Asset Management
- Adjusted operating profit before tax of £1,149 million in line with their expectations and IFRS profit after tax from continuing operations of £1,065 million
- Total capital generation of £1,509 million and shareholder Solvency II coverage ratio of 176%2
- On track to deliver annual run-rate shareholder cost savings of £145 million by 2022 through their five-year transformation programme