Finance and Capital Management
Rewarding our shareholders
Capital generation underpins attractive dividend
Business target
Dividend policy
Expectations for ordinary dividends:
Customer
and Distribution
Transformation
Investment
Engine
Finance and
Capital
3-year cumulative
1
Stable or increasing
in absolute terms over time
capital generation 1
2
Two dividend payments per year
interim dividend being 1/3 of the previous full year
2020-22
mid-point ₤2.2bn
target²
After debt financing
costs, other Corporate
3
2019 final ordinary dividend of £310m³
implying an "as-if" full year ordinary dividend of c. £465m³,4
Centre costs and tax
4
To develop broadly in line with capital
generation over the longer term
1. Total change in Solvency II surplus before capital movements and dividends; 2. Provisional target subject to further consideration by the Remuneration Committee of appropriate 2020 incentive plan targets at year-end 2019; 3. Subject to the Company's financial performance and overall financial position remaining in line with expectations;
4. M&G plc expects³ to declare a one-off demerger related dividend of £100m in recognition that, for the majority of 2019, it 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
22
22View entire presentation