Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to jfgw,Rhyd6,eyeball08,Wondergirly,bofh, for Donating to support the site

M&G plc half year 2021 results

For discussion of the practicalities of setting up and operating income-portfolios which follow the HYP Group Guidelines. READ Guidelines before posting
Forum rules
Tight HYP discussions only please - OT please discuss in strategies
idpickering
The full Lemon
Posts: 11376
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2476 times
Been thanked: 5800 times

M&G plc half year 2021 results

#433613

Postby idpickering » August 10th, 2021, 7:14 am

H1 financial highlights

- Adjusted operating profit before tax of £327 million, up 6% on the first half of 2020

- IFRS loss after tax of £248 million; impacted by short-term fluctuations in the fair value of the surplus assets in our annuity portfolio and derivatives used to hedge the Solvency II balance sheet caused by increasing yields and rising equity markets

- Assets under management and administration increased to £370.0 billion, with positive market movements and net client inflows to Institutional Asset Management more than offsetting net client outflows in other areas of the business

- Total capital generation of £869 million, on track for target of £2.2 billion by the end of 2022

- Shareholder Solvency II coverage ratio strengthens to 198%

- Interim dividend of 6.1 pence per share (estimated to be £155 million) in line with our policy of paying one-third of the previous year's total dividend

And later;

Dividends and capital movements primarily represent external dividends paid to shareholders and changes to the capital structure of the Group, such as issuing or repaying debt instruments. Also included within capital movements are the Solvency II impact of the Group's share-based payment awards over and above the amount expensed in respect of those awards, and the surplus utilised or generated from transactions relating to the acquisition of business as defined by IFRS.

The expected surplus capital from the in-force life insurance business is calculated on the assumption of real-world investment returns, which are determined by reference to the risk-free rate plus a risk premium based on the mix of assets held for the relevant business. For with-profits business, the assumed average return was 4.0% for the six months ended 30 June 2021, 4.3% for the six months ended 30 June 2020 and the year ended 31 December 2020. For annuity business, the assumed average return on assets backing capital was 1.15% for the six months ended 30 June 2021, 2.09% for the six months ended 30 June 2020 and 2.09% for the year ended 31 December 2020.

The Group's capital generation results in respect of the six months ended 30 June 2021 and 30 June 2020, and year ended 31 December 2020 are shown below, alongside a reconciliation of the total movement in the Group's Solvency II surplus. The reconciliation is presented showing the impact on the shareholder Solvency II own funds and SCR, which excludes the contribution to own funds and SCR from the Group's ring-fenced With-Profits Fund. The shareholder Solvency II capital position, and how this reconciles to the regulatory capital position, is described in detail in the previous section of this supplementary information.


https://www.investegate.co.uk/m--38-g-p ... 00040756I/

I have been mulling over bringing these on board my HYP. The fact that my 11 year old Granddaughter has them is nothing to do with it. ;)

Ian.

idpickering
The full Lemon
Posts: 11376
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2476 times
Been thanked: 5800 times

Re: M&G plc half year 2021 results

#433621

Postby idpickering » August 10th, 2021, 8:18 am

Ex div 19 August, paid 29 Sep 21.

Ian.

moorfield
Lemon Quarter
Posts: 3552
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1585 times
Been thanked: 1416 times

Re: M&G plc half year 2021 results

#433833

Postby moorfield » August 10th, 2021, 9:34 pm

idpickering wrote: The fact that my 11 year old Granddaughter has them is nothing to do with it. ;)


I would hope not! "Because my granddaughter has some" would certainly be a test of the guidelines we've not seen here before I think ;) And from there it would be a short hop to "because Mrs Miggins from the local Pie Shop has some", which would begin to undermine them somewhat, and that's putting it politely.

Anyway, there is a school of thought that MNG are worth a look, but when they have a bit of longevity in their own right. And that we should be wary of chasing higher yields just for the sake of it.

Out of interest, why did your granddaughter buy MNG? Does she run a HYP also?

scrumpyjack
Lemon Quarter
Posts: 4860
Joined: November 4th, 2016, 10:15 am
Has thanked: 614 times
Been thanked: 2706 times

Re: M&G plc half year 2021 results

#433838

Postby scrumpyjack » August 10th, 2021, 9:48 pm

HL's detailed comments on M&G (no paywall)

https://www.hl.co.uk/shares/share-resea ... supportive

idpickering
The full Lemon
Posts: 11376
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2476 times
Been thanked: 5800 times

Re: M&G plc half year 2021 results

#433881

Postby idpickering » August 11th, 2021, 3:51 am

moorfield wrote:
idpickering wrote: The fact that my 11v year old Granddaughter has them is nothing to do with it. ;)


I would hope not! "Because my granddaughter has some" would certainly be a test of the guidelines we've not seen here before I think ;) And from there it would be a short hop to "because Mrs Miggins from the local Pie Shop has some", which would begin to undermine them somewhat, and that's putting it politely.

Anyway, there is a school of thought that MNG are worth a look, but when they have a bit of longevity in their own right. And that we should be wary of chasing higher yields just for the sake of it.

Out of interest, why did your granddaughter buy MNG? Does she run a HYP also?


I was only joking. I thought the smiley would’ve been a huge clue. She does hold them, and does not run a HYP. I do agree about waiting for the firm to have some longevity.

Ian.

Arborbridge
The full Lemon
Posts: 10439
Joined: November 4th, 2016, 9:33 am
Has thanked: 3644 times
Been thanked: 5272 times

Re: M&G plc half year 2021 results

#433892

Postby Arborbridge » August 11th, 2021, 6:53 am

moorfield wrote:
idpickering wrote: The fact that my 11 year old Granddaughter has them is nothing to do with it. ;)


I would hope not! "Because my granddaughter has some" would certainly be a test of the guidelines we've not seen here before I think ;) And from there it would be a short hop to "because Mrs Miggins from the local Pie Shop has some", which would begin to undermine them somewhat, and that's putting it politely.

Anyway, there is a school of thought that MNG are worth a look, but when they have a bit of longevity in their own right. And that we should be wary of chasing higher yields just for the sake of it.

Out of interest, why did your granddaughter buy MNG? Does she run a HYP also?


Although "highly thought of by Pyad, the man behind the HYP" carries more weight for some ;) What's interesting in this case is that the comments from the master himself down played the lack of history. One has always to "take a view" on the balance of factors which encourage or prevent one from action.

Ian was naturally joking, but what you refer to is the well known indicator that if you postman or dustman is giving you share tips, that is probably a sign that the market is overbought. Momentum in the market relies upon there being the other people to buy and force the price up.
Arb.

idpickering
The full Lemon
Posts: 11376
Joined: November 4th, 2016, 5:04 pm
Has thanked: 2476 times
Been thanked: 5800 times

Re: M&G plc half year 2021 results

#433894

Postby idpickering » August 11th, 2021, 7:01 am

Arborbridge wrote:
Although "highly thought of by Pyad, the man behind the HYP" carries more weight for some ;) What's interesting in this case is that the comments from the master himself down played the lack of history. One has always to "take a view" on the balance of factors which encourage or prevent one from action.

Ian was naturally joking, but what you refer to is the well known indicator that if you postman or dustman is giving you share tips, that is probably a sign that the market is overbought. Momentum in the market relies upon there being the other people to buy and force the price up.
Arb.


Thanks for your common sense post Arb. I wasn't going to pursue this obvious distraction to this thread any further.

Ian.

moorfield
Lemon Quarter
Posts: 3552
Joined: November 7th, 2016, 1:56 pm
Has thanked: 1585 times
Been thanked: 1416 times

Re: M&G plc half year 2021 results

#433925

Postby moorfield » August 11th, 2021, 9:17 am

Arborbridge wrote:Ian was naturally joking, but what you refer to is the well known indicator that if you postman or dustman is giving you share tips, that is probably a sign that the market is overbought. Momentum in the market relies upon there being the other people to buy and force the price up.


As was I of course. If the postman or dustman (or their granddaughters) were giving me share tips I would want to know more, as I'm sure you would, and which is why I asked the two follow-through questions.

88V8
Lemon Half
Posts: 5843
Joined: November 4th, 2016, 11:22 am
Has thanked: 4191 times
Been thanked: 2602 times

Re: M&G plc half year 2021 results

#433973

Postby 88V8 » August 11th, 2021, 10:43 am

I took a punt on these after Pyad flagged them.
After all, even pre-covid there has seemed in recent times to be a general ditching of the 'five year rising dividend' principle.
And the yield was and is tempting. Where's Luni when we need him, reminding us not to chase the yield....

So far, so good. As long as they keep paying the divi.

V8

MDW1954
Lemon Quarter
Posts: 2365
Joined: November 4th, 2016, 8:46 pm
Has thanked: 527 times
Been thanked: 1013 times

Re: M&G plc half year 2021 results

#434356

Postby MDW1954 » August 12th, 2021, 2:37 pm

I picked up a small holding in January, attracted by the yield. Up 14% since, and throwing off a decent income.

MDW1954


Return to “HYP Practical (See Group Guidelines)”

Who is online

Users browsing this forum: G3lc, Google Adsense [Bot], Taverhamboy and 37 guests