MG Reports Inflow Growth and Loss
British insurer MG posted higher client inflows and beat operating profit forecasts despite a bottom line loss driven by ground rent asset reforms. The company reiterated its performance targets and reported strong momentum in its asset management unit.
Insights:
M&G reported a bottom-line loss of £165 million on Thursday morning after taking a £325 million ($439 million) hit from United Kingdom ground rent reforms. The loss contrasted with a £248 million after-tax profit during the same period last year. The drop followed a restructuring push and regulatory caps limiting ground rents on flats to £250 annually.
