Interim report
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M&G plc half year 2026 results Adjusted operating profit up 15% to £435m, with strong overall performance £2.4bn net inflows from open business underpinned by Asset Management growth Excellent progress in Bulk Purchase Annuities gross flows with £1.7bn as of end of August Andrea Rossi, Group Chief Executive Officer, said: “I am very pleased with our progress over the first six months of the year. We delivered record adjusted operating profit, strong net inflows and continued growth in BPA volumes, while achieving positive outcomes for our customers and clients. “The business is performing strongly, with adjusted operating profit of £435 million, up 15% year on year, our best first half result since listing in 2019. We continue to execute on our strategy, successfully driving the Group towards high-quality and capital-light earnings, which now account for 80% of total adjusted operating profit. “Net inflows from open business of £2.4 billion reflect the breadth and strength of our offering, with Asset Management delivering £2.2 billion of net inflows from external clients, including £0.7 billion through our partnership with Daiichi Life Group. “In Life, we launched our new With-Profits BPA Plus proposition and have completed £1.7 billion of deals so far this year, already exceeding total annuity volumes achieved in 2025. “M&G continues to grow and transform, becoming a more diversified, efficient, and capital-light business. With a clear strategy, disciplined execution and the right resources in place, I am confident in our outlook for the second half of 2026 and in our ability to deliver sustainable long-term value for customers, clients and shareholders.” For the six months ended 30 June For the year ended 31 December Performance highlightsi 2026 2025 2025 Assets under management and administration (AUMA) (£bn) 387 355 376 Net flows from open businessii (£bn) 2.4 2.1 7.8 Adjusted operating profit before tax (AOP) (£m) 435 378 838 IFRS profit/(loss) after tax (£m) (165) 248 314 Operating change in Contractual Service Margin (CSM) (£m) 54 65 246 Operating capital generation (OCG) (£m) 372 408 765 Total capital generation (£m) 375 354 833 Shareholder Solvency II coverage ratio (%) 247% 230% 242% Dividend per share (p) 6.8 6.7 20.5 i Definitions of key performance measures are provided in the Supplementary information section of the Interim Financial Report on page 64. ii Net flows from open business consists of net client flows from Asset Management, PruFund, Annuities and the parts of Other Life open to new business. Press release 3 September 2026 1 Net Flows from Open Businessii £2.4bn H1 2025: £2.1bn Adjusted Operating Profit Before Tax £435m H1 2025: £378m Operating Capital Generation £372m H1 2025: £408m Shareholder Solvency II Ratio 247% YE 2025: 242% Total Dividend per Share 6.8p H1 2025: 6.7p
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H1 2026 financial highlights: Record H1 adjusted operating profit – Adjusted Operating Profit of £435 million (H1 2025: £378 million) is 15% higher year-on-year, driven by 24% growth in the Asset Management contribution and 9% growth in Life. – Improved Asset Management AOP of £159 million (H1 2025: £128 million) benefitted from higher recurring revenues of £565 million (H1 2025: £514 million) underpinning a £22 million increase in fee-based earnings. – Life AOP increased to £375 million (H1 2025: £344 million), driven by higher results in PruFund and Traditional With-Profits, reflecting the higher opening CSM, more than offsetting a lower contribution from Annuities. – Corporate Centre loss of £99 million (H1 2025: £94 million) increased year-on-year due to lower interest income, driven by lower short-term interest rates, and slightly higher head office costs. – IFRS loss after tax of £165 million (H1 2025: £248 million profit) was impacted by £551 million adverse short-term fluctuations in investment returns, of which £325 million (pre-tax) relates to proposed changes to Ground Rent legislation. – The CSM grew by 6% to £7.0 billion (31 Dec 2025: £6.6 billion) representing a meaningful store of future value; growth was driven by an operating change of £54 million and positive market and other movements of £309 million. – OCG of £372 million (H1 2025: £408 million) reduced year-on-year mainly due to movements in the capital requirements of the Asset Management and Corporate Centre segments. – The 2026 first interim dividend of 6.8 pence per share (30 June 2025: 6.7 pence per share) is mechanically set as one third of the previous year’s total dividend, in line with our progressive dividend policy. The first interim dividend is payable on 16 October 2026. H1 2026 operational highlights: Delivering on our strategic priorities – Achieved net inflows from open business of £2.4 billion despite a volatile external environment, demonstrating the Group’s ability to deliver diversified growth across segments and markets. – Asset Management accounted for the majority of the inflows, with net inflows from external clients of £2.2 billion, including positive results across both Wholesale and Institutional clients, as we grew in the UK and internationally. – Continued to improve the diversification of our Asset Management business, growing external client assets to £189 billion (53% of total Asset Management AUMA), of which £110 billion is from international clients. – Delivered £13 million in Asset Management annualised net new revenues as we continue to attract clients to our high-value solutions, in particular in private markets, with net inflows of £1.3 billion and AUMA of £83 billion. – Launched our With-Profits Bulk Purchase Annuity proposition (BPA Plus), in February, delivering £0.6 billion of inflows in H1 and a further £1.1 billion over July and August; improving on last year’s total annuity flows in just eight months. – Launched PruFund on the Scottish Widows adviser digital platform in June, and expect to launch on a second third-party platform later in the year. – Declared an inaugural bonus of 0.45% on our With-Profits Fixed-Term Annuity (the Prudential Guaranteed Income Plan), which we launched in July 2025, delivering improved outcomes to our customers. Outlook: Good progress on our financial targets and continued business momentum – M&G is well positioned to deliver strong long-term financial outcomes, operating in structurally growing markets with clear competitive strengths and leveraging its balanced and synergistic business model. – Our strategic priorities are clear: maintain our financial strength, continue to simplify our business, and drive profitable growth across markets and segments. – We are committed to achieving an average annual growth in adjusted operating profit before tax (AOP) of at least 5% over 2025-2027 and, supported by the strong financial performance delivered so far in 2026, we expect to achieve low double-digit AOP growth on a Full Year basis. – We continue to progress towards our target cost-to-income ratio of 70% and, having already achieved a 73% ratio in the first half of the year, we expect further improvements in H2 2026. – We are on-track to meet the target of £2.7 billion cumulative Operating Capital Generation excluding new business strain over 2025-2027. – Finally, despite a volatile external environment, new business momentum remains positive across the Group. In Asset Management, we achieved net inflows from external clients of £1.0 billion in July, while in Life, we are confident in delivering continued growth in BPA volumes in the second half. Press release 3 September 2026 2
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Enquiries: Media Investors/Analysts Irene Chambers +44(0)7825 696815 Luca Gagliardi +44(0)20 8162 7301 Irene.Chambers@mandg.com Luca.Gagliardi@mandg.com Will Sherlock +44(0)7786 836562 Mariana Romano +44(0)20 8162 8729 Will.Sherlock@mandg.com Mariana.Romano@mandg.com Notes to editors 1 The condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting ('IAS 34'), as adopted by the UK, and the Disclosure and Transparency Rules of the Financial Conduct Authority based on the consolidated financial statements of M&G plc. 2 The Solvency II results include transitional measures, which are recalculated as at the valuation date, using management’s estimate of the impact of operating and market conditions. 3 Total number of M&G plc shares in issue as at 30 June 2026 was 2,413,425,551. 4 A live webcast of the Half Year 2026 Results presentation and Q&A will be hosted by Andrea Rossi (Group CEO) and Kathryn McLeland (Group CFO) on Thursday 3rd of September at 9:30 BST. Register to join at https://sparklive.lseg.com/MG/events/6332ab30-eb49-4e6d-8b92-4b7baaf58436/m-g-plc- half-year-financial-results-2026. The Results presentation will be available to download from 07:00 BST on our Results webpage Results & announcements – M&G plc. Dividend to be paid in October 2026 Ex-dividend date 10 September 2026 Record date 11 September 2026 Payment of dividend 16 October 2026 About M&G plc M&G plc is a leading international savings and investments business, managing money for around 4.2i million retail clients and more than 1,000i Institutional clients in 38i offices worldwide. As at 30 June 2026, we had £387 billion of assets under management and administration. At M&G, we have over 175 years of experience navigating challenges and opportunities - whether that's managing investments, supporting saving, providing financial advice or offering retirement solutions - to help give people and businesses the confidence to put their money to work. Additional Information M&G plc, a company incorporated in the United Kingdom, is the ultimate parent company of The Prudential Assurance Company Limited (PAC). PAC is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom. Forward-Looking Statements This announcement may contain certain ‘forward-looking statements’ with respect to M&G plc (M&G) and its affiliates (the Group), its plans, its current goals and expectations relating to future financial condition, performance, results, operating environment, strategy and objectives. Statements that are not historical facts, including statements about M&G’s beliefs and expectations and including, without limitation, statements containing the words ‘may’, ‘will’, ‘could’, ‘should’, ‘continue’, ‘aims’, ‘estimates’, ‘projects’, ‘believes’, ‘intends’, ‘expects’, ‘plans’, ‘seeks’, ‘outlook’ and ‘anticipates’, and words of similar meaning, are forward-looking statements. These statements are based on plans, estimates and projections which are current as at the time they are made, and therefore persons reading this announcement are cautioned against placing undue reliance on forward-looking statements. By their nature, forward-looking statements involve inherent assumptions, risk and uncertainty, as they generally relate to future events and circumstances that may not be entirely within M&G’s control. A number of factors could cause M&G’s actual future financial condition or performance or other indicated results to differ materially from those indicated in any forward-looking statement. Such factors include, but are not limited to: changes in domestic and global political, economic and business conditions; market-related conditions and risk, including fluctuations in interest rates and exchange rates, the potential for a sustained low-interest rate environment, corporate liquidity risk and the future trading value of the shares of M&G; investment portfolio-related risks, such as the performance of financial markets generally; legal, regulatory and policy developments, such as, for example, new government initiatives and regulatory measures, including those addressing climate change and broader sustainability- related issues, and broader development of reporting standards; the impact of competition, economic uncertainty, inflation and deflation; the effect on M&G’s business and results from, in particular, mortality and morbidity trends, longevity assumptions, lapse rates and policy renewal rates; the timing, impact and other uncertainties of future acquisitions or combinations within relevant industries; the impact of internal projects and other strategic actions, such as transformation programmes, failing to meet their objectives; changes in environmental, social and geopolitical risks and incidents, pandemics and similar events beyond the Group’s control; the Group’s ability along with governments and other stakeholders to measure, manage and mitigate the impacts of climate change and broader sustainability-related issues effectively; the impact of operational risks, including risk associated with third-party arrangements, reliance on third-party distribution channels and disruption to the availability, confidentiality or integrity of M&G’s IT systems (or those of its suppliers); the impact of changes in capital, solvency standards, accounting standards or relevant regulatory frameworks, and tax and other legislation and regulations in the jurisdictions in which the Group operates; and the impact of legal and regulatory actions, investigations and disputes. These and other important factors may, for example, result in changes to assumptions used for determining results of operations or re-estimations of reserves for future policy benefits. Any forward-looking statements contained in this announcement speak only as of the date on which they are made. M&G expressly disclaims any obligation to update any of the forward-looking statements contained in this announcement or any other forward-looking statements it may make, whether as a result of future events, new information or otherwise except as required pursuant to the UK Prospectus Rules, the UK Listing Rules, the UK Disclosure and Transparency Rules, or other applicable laws and regulations. This report has been prepared for, and only for, the members of M&G, as a body, and no other persons. M&G, its Directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come, and any such responsibility or liability is expressly disclaimed. Nothing in this report should be construed as a profit forecast. The information contained in this announcement does not constitute an offer to sell or otherwise dispose of or an invitation or solicitation of any offer to purchase or subscribe for any securities in the Group. i As at 31 December 2025 Press release 3 September 2026 3
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M&G plc Interim Financial Report for the six months ended 30 June 2026 Contents Page Management statement 5 Financial review 7 Risk management statement 17 Statement of Directors’ responsibilities 18 Independent review report to M&G plc 19 Interim financial statements 20 Supplementary information 64 A glossary of terms used in this report was published as part of our 2025 Annual Report & Accounts announcement and is available at group.mandg.com/investors/results-and-announcements/annual-report 4
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Management statement During the first six months of 2026, we have continued to make great progress against our strategic priorities. Since 2023, when we launched our refreshed strategy, we have focused on building the foundations for long-term growth while maintaining our financial strength and simplifying the business. We are now delivering on growth with good net inflows from open business of £2.4 billion in the period, and the highest adjusted operating profit for the first half of the year since listing in 2019 of £435 million. Against a backdrop of on-going market volatility and geopolitical uncertainty, our Asset Management and Life businesses are continuing to work together to meet evolving customer and client needs. We are building scale in areas where we have distinctive capabilities, broadening access to our products and services, while maintaining focus on operational efficiency and financial resilience. Last year we announced our strategic partnership with Daiichi, who are now our largest shareholder and as part of the next stage of our arrangement, Hitoshi Yamaguchi, Daiichi’s Group Chief Human Resources Officer, will join our Board of Directors, bringing more than three decades of leadership experience, spanning international insurance and finance. The partnership is continuing to strengthen M&G’s presence in Japan and across Asia and supports opportunities across both the Asset Management and Life businesses with Daiichi also recognising the benefits of our integrated business model. During the first half of the year the Group continued to benefit from demand linked to Daiichi mandates attracting inflows of £0.7 billion, giving a total of £1.1 billion since the start of the relationship. The progress we are making across the Group reflects the strength of our customer and client franchise, the depth of our investment expertise and the continued relevance of our purpose: to give everyone real confidence to put their money to work. Asset management Our Asset Management business continues to grow, with net inflows in the period from external asset management clients of £2.2 billion, a strong result despite on-going market volatility, with an equal contribution from Institutional and Wholesale clients. In Institutional, as well as continuing to grow internationally, we have seen a turnaround in UK flows delivering £0.8 billion of net inflows in the period. Our total Wholesale net inflows of £1.1 billion have benefitted from strong investment performance, particularly in Public Equities. Asset Management’s total assets under management increased by over £10 billion in the period, and have grown steadily by 17% over the last three years since we launched our growth strategic priority to £356 billion at 30 June 2026. We have improved the diversification of the Asset Management business with it becoming less reliant on the Life business and UK market. Over the same three year period, assets managed on behalf of external clients have increased by 29% to £189 billion at 30 June 2026, with our international business increasing even faster, by more than 40%, and now accounting for nearly 60% of total external assets. Alongside this growth, we have maintained our focus on improving profitability, further reducing the Asset Management cost-to-income ratio to 73% in the period and we remain on track to reduce this further to 70% by the end of 2027. Life The Life segment is now a core driver of M&G’s capital-light growth with nearly all new business being written through the With-Profits Fund and we are continuing to innovate and broaden access to our retirement and savings propositions. In February we launched our With-Profits Bulk Purchase Annuity proposition (BPA Plus) with great success, attracting £0.6 billion inflows to the end of June and a further £1.1 billion of inflows since, already improving on last year’s total BPA inflows. This product combines the security and certainty that a traditional BPA can provide with the opportunity for members to benefit from future investment outperformance. As well as the benefits to customers, BPA Plus represents an attractive source of capital-light growth for shareholders and supports future earnings generation by leveraging the strengths of both our Life and Asset Management capabilities. Scaling our BPA propositions increases our AUMA and also supports the growth of our Asset Management private markets business. Our strategy for individual Life customers consists of two key elements; firstly to improve the distribution of our flagship PruFund proposition and secondly to broaden our product offering. PruFund remains a core part of our customer offering, providing a smoothed investment solution designed to help customers navigate market volatility. In June we were pleased to make PruFund available to advisers on the Scottish Widows adviser digital platform. Now that we have the technology in place, we expect to launch on a second third-party platform later in the year. We have also recently announced an enhanced outsourcing arrangement to manage the operations of our own M&G platform, another key distribution channel for PruFund, which is intended to help improve service, resilience and scalability over time. As part of broadening our product offering, last year we launched the Prudential Guaranteed Income Plan, a fixed-term annuity product which is also powered by the With-Profits Fund. This fully digital proposition guarantees income for a fixed term between 3 and 30 years and has generated over £100 million of inflows since launch, with an inaugural bonus of 0.45% declared in February. Expanding our proposition range in this way allows advisers to create tailored retirement income solutions for our customers to meet their evolving needs. M&G plc Interim Financial Report 2026 5
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Management statement (continued) Delivering for our shareholders In the first six months of the year we have delivered net inflows from open business of £2.4 billion, £2.2 billion of which are from external Asset Management clients. In Life, our BPA Plus proposition, launched in the period, generated inflows of £0.6 billion to the end of June, offsetting the outflows from the run off of legacy annuities in payment. Adjusted operating profit before tax (AOP) grew to £435 million for the six months ended 30 June 2026, 15% higher than the same period in 2025, with a 24% increase in Asset Management AOP to £159 million and a 9% increase in the contribution from Life to £375 million. This increase, as we continue to grow the business, keeps us on track to meet our target of AOP annual growth of 5% or more on average over the three years 2025-2027. In Asset Management, we have again increased revenue whilst remaining disciplined on cost and are pleased with the improvement in the cost-to-income ratio to 73%. In Life, an increase in AOP for both PruFund and Traditional with-profits business driven by increased opening Contractual Service Margin (CSM) following strong returns on the With-Profits Fund over 2025, was partially offset by a decrease in the contribution from annuities, following lower expected return on excess assets. Operating change in Contractual Service Margin was positive although reduced at £54 million (30 June 2025: £65 million). The closing CSM of £7.0 billion (31 December 2025: £6.6 billion), up 6% benefitting from continuing strong returns in the With-Profits Fund, demonstrates a large and growing store of future value. Our IFRS result was a loss after tax attributable to equity holders of £165 million (30 June 2025: £248 million profit) primarily due to significant losses from short-term fluctuations in investment returns heavily impacted by the UK Government’s publication of the draft Commonhold and Leasehold Reform Bill in January 2026. This impacted both the valuation of insurance contract liabilities, following the resultant removal of assets from portfolios used to derive the discount rate applied in calculating the liabilities, and the valuation of ground rent assets leading to a pre-tax loss of £325 million. Underlying capital generation reduced to £304 million (30 June 2025: £331 million) with an improved contribution from Life being more than offset by a lower result from Asset Management and Corporate Centre due to changes in capital requirements. Operating capital generation was £372 million (30 June 2025: £408 million) following the reduced underlying capital generation and a slightly reduced benefit from management actions in the period. As we announced in 2025, we are targeting cumulative operating capital generation (excluding new business strain) of £2.7 billion for the three years to 2027 and we are on track with £392 million delivered for the six months to 30 June 2026 and £1,320 million in the first 18 months of the duration of the target. Total capital generation was £375 million (30 June 2025: £354 million) with market movements and tax benefits offsetting the strain from restructuring costs in the period, leading to a shareholder Solvency II coverage ratio of 247% (30 June 2025: 230%). In line with our progressive dividend policy we are declaring an interim ordinary dividend of 6.8 pence per share (30 June 2025: 6.7 pence per share), payable on 16 October 2026. M&G plc Interim Financial Report 2026 6
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Financial review AUMA and net client flows Assets under management and administration (AUMA) increased by £11.5 billion to £387.4 billion (31 December 2025: £375.9 billion) in the six months ended 30 June 2026 as a result of favourable market movements and net inflows from open business of £2.4 billion (30 June 2025: £2.1 billion). Net flows from open business primarily includes flows from Asset Management, PruFund, Annuities and advice. These have increased compared to 30 June 2025 due to a return to net inflows in Life as we continue to win Bulk Purchase Annuity (BPA) business through our new BPA Plus proposition launched in the period. The following table shows an analysis of AUMA and net client flows by segment: Net client flows Net flows from open business Net flows other Total net client flows AUMAi For the six months ended 30 June For the year ended 31 December For the six months ended 30 June For the year ended 31 December For the six months ended 30 June For the year ended 31 December As at 30 June As at 31 December 2026 2025 2025 2026 2025 2025 2026 2025 2025 2026 2025 2025 £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn £bn Institutional Asset Management 1.1 1.9 4.0 — — — 1.1 1.9 4.0 110.2 102.9 109.0 Wholesale Asset Management 1.1 0.7 3.0 — — — 1.1 0.7 3.0 79.0 65.2 73.2 Other Asset Management — — — — — — — — — 0.7 0.7 0.7 Asset Managementii 2.2 2.6 7.0 — — — 2.2 2.6 7.0 189.9 168.8 182.9 With-profits: PruFund (0.1) (0.6) (0.2) — — — (0.1) (0.6) (0.2) 73.1 64.7 69.8 With-profits: traditional — — — (2.5) (2.3) (5.4) (2.5) (2.3) (5.4) 64.8 64.8 64.6 Annuities — (0.3) 0.4 — — — — (0.3) 0.4 16.1 15.2 16.1 Other Life 0.3 0.4 0.6 (1.7) (2.3) (4.0) (1.4) (1.9) (3.4) 42.8 40.1 41.7 Life 0.2 (0.5) 0.8 (4.2) (4.6) (9.4) (4.0) (5.1) (8.6) 196.8 184.8 192.2 Corporate assets — — — — — — — — — 0.7 1.0 0.8 Total 2.4 2.1 7.8 (4.2) (4.6) (9.4) (1.8) (2.5) (1.6) 387.4 354.6 375.9 i £22.3 billion (£18.4 billion as at 30 June 2025, £20.9 billion as at 31 December 2025) of total AUMA relates to assets under advice. ii Asset Management AUMA, does not include £166.6 billion of AUMA of Life that is managed internally (£155.6 billion as at 30 June 2025, £162.3 billion as at 31 December 2025). Asset Management Asset Management AUMA increased to £189.9 billion (31 December 2025: £182.9 billion) with net client inflows of £2.2 billion (30 June 2025: £2.6 billion) and positive market and other movements of £4.8 billion (30 June 2025: £6.4 billion). For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £bn £bn £bn Institutional Asset Management 110.2 102.9 109.0 Wholesale Asset Management 79.0 65.2 73.2 Asset Management - external clients 189.2 168.1 182.2 Other Asset Management 0.7 0.7 0.7 Asset Management 189.9 168.8 182.9 Internal assets 166.6 155.6 162.3 Total Asset Management 356.5 324.4 345.2 Total AUMA for Asset Management, including AUMA managed on behalf of the Life segment, is £356.5 billion (31 December 2025: £345.2 billion). Institutional Asset Management AUMA increased to £110.2 billion due primarily to net client inflows in the six months to 30 June 2026 of £1.1 billion (30 June 2025: £1.9 billion net inflows). In UK Institutional Asset Management net inflows continued from the latter part of 2025 with £0.8 billion for the six months to 30 June 2026 (30 June 2025: £1.3 billion net outflows) through continued success in winning structured credit and fixed income mandates. International Institutional net inflows for the first six months were £0.3 billion compared to £3.2 billion for the same period in 2025, with 2025 benefitting from a single large Equity mandate win. Inflows in 2026 include £0.7 billion through our partnership with Daiichi and inflows into European Real Estate, partly offset by redemptions in South African Equities and European Fixed Income. M&G plc Interim Financial Report 2026 7
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Financial review (continued) Our expertise in private assets remains a key component of our Institutional investment capability as a resilient, high-margin source of revenues. Private assets under management, including those managed on behalf of the Life segment, increased to £82.8 billion of AUMA as at 30 June 2026 (31 December 2025: £80.8 billion). In Wholesale Asset Management, net inflows increased to £1.1 billion (30 June 2025: £0.7 billion) driven by continued net inflows, particularly in relation to our European and Asian equity funds. As of 30 June 2026, 53%, 53% and 78% of our Wholesale funds by AUMA ranked in the upper performance quartiles over one, three and five years respectively (31 December 2025: 67%, 56%, and 75% over one, three and five years), with over 50% of equity funds in the top quartile over both 3 and 5 years. Wholesale AUMA increased £5.8 billion to £79.0 billion as at 30 June 2026 (31 December 2025: £73.2 billion), benefitting from market and other movements of £4.7 billion, due to improving equity markets. Life Net client flows from open business, which primarily comprises PruFund, Annuities and advice, improved to £0.2 billion net inflows (30 June 2025: £0.5 billion net outflows) reflecting the BPA transactions which contributed £0.6 billion inflows, and a reduction in PruFund net outflows during the year. PruFund, our insurance-based smoothing solution which offers a blend of public and private investments to clients, had net client outflows of £0.1 billion (30 June 2025: £0.6 billion net client outflows). The improvement in net outflows reflects an overall improvement in PruFund net flows seen through the latter part of 2025, dampened slightly in the period following heightened market volatility which can impact customer behaviour. PruFund flows include flows attracted through our internal platform business. Annuities client flows of net nil (30 June 2025: £0.3 billion net client outflows) have improved as we continue to expand our corporate pension risk business. Inflows in 2026 of £0.6 billion (30 June 2025: £0.2 billion) relate to our first four BPA Plus transactions following the launch of this innovative new offering in the period. These are offset by outflows of £0.6 billion (30 June 2025: £0.5 billion) primarily from legacy annuities in payment as they continue to run-off. Net client flows from open business were offset by the traditional with-profits business experiencing expected net outflows of £2.5 billion (30 June 2025: £2.3 billion), outflows from third-party funds on our internal adviser platform, and expected run-off from our other small closed books of business. Total net client flows from the Life business were £4.0 billion outflows (30 June 2025: £5.1 billion). Total Life AUMA increased £4.6 billion to £196.8 billion (31 December 2025: £192.2 billion) with the net client outflows being more than offset by positive market and other movements of £8.6 billion (30 June 2025: £4.8 billion), driven by improving equity markets. M&G plc Interim Financial Report 2026 8
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Financial review (continued) Earnings Our key metrics to describe our earnings are: Adjusted operating profit before tax (AOP), which demonstrates our longer-term performance to shareholders, excluding the effect of short-term market movements and non-recurring items; Operating change in Contractual Service Margin (CSM), which supplements AOP and includes the impact of new business and management actions not included in AOP; and IFRS result after tax which demonstrates our financial performance to shareholders on an IFRS basis. Adjusted operating profit before tax Adjusted operating profit before tax increased to £435 million for the six months to 30 June 2026 (30 June 2025: £378 million), reflecting improved results from both Asset Management and Life. The following table shows an analysis of adjusted operating profit before tax by segment: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Asset Management 159 128 280 Revenue 565 514 1,066 Costs (417) (388) (805) Performance feesi 4 7 15 Investment income and non-controlling interests 7 (5) 4 Life 375 344 764 With-profits: PruFund 129 112 265 With-profits: traditional 137 120 258 Annuities 105 113 283 Other Life 4 (1) (42) Corporate Centre (99) (94) (206) Head office (30) (25) (67) Debt interest cost (69) (69) (139) Adjusted operating profit before tax 435 378 838 Asset Management Asset Management adjusted operating profit before tax increased to £159 million (30 June 2025: £128 million) following an increase of £22 million in fee-related earningsii as we continued to grow revenue whilst maintaining cost discipline. Asset Management revenue increased 10% to £565 million for the six months ended 30 June 2026 (30 June 2025: £514 million) with a 7% rise in operating costs to £417 million (30 June 2025: £388 million). The increased revenue reflects our ongoing focus on growth and includes income earned by P Capital Partners (PCP), which we acquired in June 2025. Our ongoing emphasis on cost discipline has allowed us to continue to invest for the long-term in the business, as we added distribution and investment capabilities, whilst further improving our operating leverage. The cost-to-income ratio for the Asset Management business reduced to 73% (31 December 2025: 75%). Revenue earned by Institutional Asset Management was £200 million (30 June 2025: £184 millioniii) including PCP revenue, and in Wholesale Asset Management revenue increased to £209 million (30 June 2025: £176 millioniii). The increase in Wholesale revenue reflects fees earned on higher average AUMA, in particular in equity funds which have continued to see inflows and positive market movements. Internal revenue in respect of assets managed on behalf of Life was £156 million (30 June 2025: £154 million). The average revenue margin for Asset Management remained broadly flat at 32bps for the six months ended 30 June 2026 (31 December 2025: 33bps). In both Institutional and Wholesale the average fee margin was also largely unchanged with Institutional at 37bps (31 December 2025: 38bps) and Wholesale at 55bps (31 December 2025: 55bps). Performance fees includes carried interest which is lower in the six months ended 30 June 2026 due to a fewer number of events that crystallised the recognition of the income. Investment income and non-controlling interests have significantly improved from the same period in 2025 at £7 million net income (30 June 2025: £5 million net loss) with a significant increase in investment income to £16 million (30 June 2025: £3 million). Investment income relates to returns on seed investments, units held to hedge management incentive schemes, interest income on cash balances and any foreign exchange revaluation impacts. The increase reflects increased gains on foreign exchange revaluations following the USD strengthening against GBP in the period and improvements in hedging and seed investments. i Performance fees are net of the corresponding performance-related remuneration payable under Asset Management employee incentive schemes. ii Fee-related earnings are revenue less costs. iii 2025 figures differ to those previously presented as now reflect the amounts excluding internal revenue. M&G plc Interim Financial Report 2026 9
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Financial review (continued) Life Adjusted operating profit before tax from our Life business increased £31 million to £375 million for the six months ended 30 June 2026 (30 June 2025: £344 million). The improved contribution from with-profits business reflecting an increase in Contractual Service Margin (CSM) release was partly offset by a lower contribution from annuities. With-profits: PruFund The table below shows a further analysis of the adjusted operating profit before tax from PruFund: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m CSM release to adjusted operating profit 129 110 243 Expected return on excess assetsi 3 5 10 Other (3) (3) 12 PruFund adjusted operating profit before tax 129 112 265 i Excess assets net of financial liabilities. The CSM for PruFund is primarily based on the expected value of future shareholder transfers. The CSM at the start of 2026 is higher than the start of 2025, following the higher returns on the assets held in the With-Profits Fund over 2025. There has been a slight decrease in CSM amortisation rate to 11.0% (2025: 11.1%), mainly reflecting a small change in the persistency assumptions in 2025 related to the Retirement Account product. The impact of the higher opening CSM more than offsets the impact of the lower amortisation rate and results in an increase in the amount of CSM released to adjusted operating profit to £129 million (30 June 2025: £110 million). The expected return on excess assets decreased by £2 million to £3 million (30 June 2025: £5 million). The expected rate of return is set at the start of the reporting period and has fallen to 5.1% compared to 6.2% in 2025 due to a combination of a change in methodology to calculate the rate which better reflects the duration of the business and the movement in the yield curve over 2025. The opening value of excess assets in the With-Profits Fund has increased following a reduction in short-term yields over 2025 which has resulted in an increase in surplus assets being allocated to PruFund. The impact of the lower expected rate of return more than offsets the increase in surplus assets resulting in a decrease in expected return on excess assets. With-profits: traditional The table below shows a further analysis of the adjusted operating profit before tax from traditional with-profits business: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m CSM release to adjusted operating profit 121 107 231 Expected return on excess assetsi 13 15 31 Other 3 (2) (4) Traditional adjusted operating profit before tax 137 120 258 i Excess assets net of financial liabilities. As outlined above for PruFund, the CSM for traditional with-profits at the start of 2026 is higher than at the start of 2025. The CSM amortisation rate for traditional with-profits has increased to 13.5% (2025: 13.1%) reflecting a mix of run-off and a change in persistency assumptions in 2025 for certain personal pensions business. The amortisation rate of the traditional with-profits business is greater than PruFund as this business is more mature and is running off faster. The impact of the higher opening CSM and increased amortisation rate results in the amount of CSM released to adjusted operating profit increasing by £14 million to £121 million (30 June 2025: £107 million). The expected return on the shareholders' share of excess assets in traditional with-profits decreased by £2 million to £13 million (30 June 2025: £15 million) for the same reasons described above for PruFund. The improvement in Other to a profit of £3 million (30 June 2025: £2 million loss) primarily relates to expense overruns on group pensions new business in 2025 which are not repeated in 2026. M&G plc Interim Financial Report 2026 10
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Financial review (continued) Annuities The table below shows a further analysis of the adjusted operating profit before tax from annuities: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m CSM release to adjusted operating profit 58 55 121 Expected return on excess assets 51 61 124 Risk adjustment unwind 9 10 19 Other (13) (13) 19 Annuities adjusted operating profit before tax 105 113 283 Annuities adjusted operating profit before tax has decreased by £8 million to £105 million (30 June 2025: £113 million). The recurring sources of earnings from the annuity book are primarily the returns on excess assets over and above the IFRS 17 insurance liabilities based on long-term expected investment returns and the release of the CSM. The release of the CSM to adjusted operating profit for annuities was £58 million in the six months ended 30 June 2026 compared to £55 million for the six months ended 30 June 2025. The release of CSM is calculated on the opening CSM adjusted for new business, interest accreted and assumption changes in the period. The release of CSM represents 7.8% of the 2026 CSM before amortisation (2025: 7.8%). The release increased in 2026 as a result of higher opening CSM following longevity assumption changes made in the second half of 2025. The expected return on excess assets has decreased by £10 million to £51 million (30 June 2025: £61 million) as a result of a reduction in the expected rate of return and in the value of the excess assets. The expected rate of return is set at the start of the reporting period and reduced from 5.2% for 2025 to 4.5% for 2026, due to a combination of a change in methodology to calculate the rate which better reflects the duration of the business, and the movement in the yield curve over 2025. The rise in longer-term risk-free rates has driven the reduction in excess assets. Other losses were £13 million (30 June 2025: £13 million) and include experience variances from higher than expected expenses. In 2026 this includes £3 million onerous contract losses (30 June 2025: nil) as well as the impact from initial expenses on BPA Plus contracts written in the period along with other expense variances. The credit quality of fixed income assets in the annuity portfolio remained robust over the first half of 2026. Approximately 97% of the debt securities held by the shareholder annuity portfolio are investment grade and 74% are A or above. In addition, 81% of the shareholder annuity portfolio is held in debt securities categorised either as Risk Free or Secured (including cash) reflecting a prudent and high-quality asset mix. Credit rating migrations during the year resulted in a low level of downgrade experience (defined as movements in notching across all credit ratings) with less than 1.6% of bonds in the shareholder annuity portfolio subject to a downgrade, this is more than offset by upgrades across 2.2% of the portfolio. Other Life For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Platform and advice (8) (14) (28) Europe 6 8 (13) Other 6 5 (1) Other Life adjusted operating profit before tax 4 (1) (42) Other Life increased by £5 million to £4 million profit (30 June 2025: £1 million loss) mainly due to reduced losses from Platform and advice which was partially offset by a small reduction in profit on European business to £6 million (30 June 2025: £8 million). Platform and advice losses reduced due to an improved result from our advice businesses as a result of both higher revenue and lower costs. Corporate Centre The loss in Corporate Centre has increased by £5 million to £99 million for the six months ended 30 June 2026 (30 June 2025: £94 million). This reflects a reduction in interest income and a slight increase in underlying head office expenses to £47 million (30 June 2025: £45 million). M&G plc Interim Financial Report 2026 11
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Financial review (continued) Operating change in Contractual Service Margin (CSM) The following table shows a breakdown of the operating change in CSM: With-profits: PruFund With-profits: Traditional Annuities Other business Total For the six months ended 30 June For the six months ended 30 June For the six months ended 30 June For the six months ended 30 June For the six months ended 30 June For the year ended 31 December 2026 2025 2026 2025 2026 2025 2026 2025 2026 2025 2025 £m £m £m £m £m £m £m £m £m £m £m Interest accreted on the CSM — — — — 16 17 3 3 19 20 44 Expected real-world return 156 155 122 135 — — — — 278 290 561 Release of CSM to adjusted operating profit (129) (110) (121) (107) (58) (55) (11) (8) (319) (280) (612) New business 62 45 — 2 2 7 5 5 69 59 144 Assumption changes and variances (2) 7 (19) (13) 14 (18) 14 — 7 (24) 109 Operating change in CSM 87 97 (18) 17 (26) (49) 11 — 54 65 246 Operating change in CSM reduced to £54 million in the six months ended 30 June 2026 (30 June 2025: £65 million). The main elements of the operating change in CSM are expected real-world return for with-profits business, new business contribution and assumption changes and variances. These are then offset by the release of the CSM to adjusted operating profit, which increased overall in the six months to 30 June 2026 compared to the same period in 2025. For with-profits expected real-world return, the expected rate of return is determined at the start of the year and is applied to the components of the Variable Feei. The Variable Fee increased in the year and the expected rate of return decreased to 7.2% for 2026 (2025: 7.8%), following a change in methodology to better reflect the average duration of the business. New business contribution is primarily based on the projected future shareholder transfer on new inflows valued at the opening risk-free rate. For annuities, interest accreted on the CSM is based on the opening CSM including new business, and assumption changes and variances. The interest rate is based on the forward curve ‘locked in’ at IFRS 17 transition date (1 January 2022) and has slightly increased to 2.3% (2025: 2.1%). With-profits: PruFund Operating change in CSM for PruFund reduced to £87 million in the six months ended 30 June 2026 (30 June 2025: £97 million). PruFund new business contribution to the CSM increased to £62 million (30 June 2025: £45 million). The rise is predominantly due to an increase in the projected future shareholder transfers driven by a rise in longer-term risk-free rates over 2025, along with the impact of certain new business being written on a charges less expenses (100:0) model from 1 April 2026. The expected real-world return for PruFund business was stable at £156 million (30 June 2025: £155 million) as the increase in Variable Fee offset the impact of the lower expected rate of return, whilst assumption changes and variances resulted in a loss of £2 million (30 June 2025: £7 million gain), with the six months ended 30 June 2025 benefitting from model improvements. With-profits: traditional With-profits: traditional operating change in CSM also reduced in the period to negative £18 million (30 June 2025: £17 million positive), including the impact of a reduction in the expected real-world return to £122 million (30 June 2025: £135 million) following the decrease in the expected return rate as set out above. The loss of £19 million from assumption changes and variances includes the impact from a reduction in the value of future shareholder transfers due to a change in future bonus rates for certain personal pensions business. The loss for the six months ended 30 June 2025 of £13 million primarily related to improvements in prospective modelling. Annuities Annuities operating change in CSM was negative £26 million for the six months ended 30 June 2026 (30 June 2025: £49 million negative) with gains from assumption changes and variances in the six months ended 30 June 2026 of £14 million mainly relating to favourable longevity experience. In the six months to 30 June 2025 the £18 million loss included the impact of updates to expense assumptions. The contribution from new business to the operating change in CSM for the six months ended 30 June 2026 only comprises internal vestings on existing business whereas the six months ended 30 June 2025 included the contribution from BPA transactions completed in the period. M&G plc Interim Financial Report 2026 12 i The Variable Fee is the amount of the Group’s share of the fair value of the underlying items less fulfilment cash flows that do not vary based on the returns on underlying items. Further information is provided in Note 1.5 Accounting policies of the 2025 Annual Report and Accounts.
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Financial review (continued) Other business The positive operating change in CSM from other business of £11 million for the six months ended 30 June 2026 (30 June 2025: nil) included £14 million positive assumption changes and variances which primarily relate to the release of a provision held in respect of guaranteed minimum pension (GMP) equalisation in the period. IFRS result after tax The following table shows a reconciliation of adjusted operating profit before tax to the IFRS result after tax: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Adjusted operating profit before tax 435 378 838 Short-term fluctuations in investment returns (551) (12) (164) Mismatches arising on application of IFRS 17 (33) 2 (106) Amortisation and impairment of intangible assets acquired in business combinations (13) (11) (52) Profit/(loss) on disposal of business and corporate transactions — 5 (5) Restructuring costs and otheri (60) (37) (90) IFRS (loss)/profit before tax and non-controlling interests attributable to equity holders (222) 325 421 IFRS profit attributable to non-controlling interests 9 8 18 IFRS (loss)/profit before tax attributable to equity holders (213) 333 439 Tax credit/(charge) attributable to equity holders 48 (85) (125) IFRS (loss)/profit after tax attributable to equity holders (165) 248 314 i Restructuring and other costs excluded from adjusted operating profit relate to transformation costs allocated to the shareholder. These differ to restructuring costs included in the analysis of administrative and other expenses in Note 6 which include costs allocated to the With-Profits Fund. The IFRS result after tax attributable to equity holders for the six months ended 30 June 2026 is a loss of £165 million (30 June 2025: £248 million profit). Adjusted operating profit before tax has been offset by losses on non-operating items, predominantly from short- term fluctuations in investment returns. Losses from short-term fluctuations in investment returns increased significantly in the six months to 30 June 2026 to £551 million (30 June 2025: £12 million) mainly due to a £325 million valuation loss following the publication of the UK Government's proposed draft Commonhold and Leasehold Reform Bill in January 2026. This impacted both the valuation of insurance contract liabilities, following the resultant removal of assets from portfolios used to derive the discount rate applied in calculating the liabilities, and the valuation of ground rent assets. The remaining losses include a loss of £61 million (30 June 2025: £23 million loss) on interest rate swaps purchased to protect PAC’s Solvency II capital position against falls in interest rates, driven by rises in yields of longer duration in the six months to 30 June 2026, which were larger than those experienced over 2025. There was also a loss of £57 million (30 June 2025: £50 million loss) on the hedging instruments held to protect the Solvency II capital position from falling equity markets, due to rising equity markets, and a £5 million foreign exchange loss (30 June 2025: £37 million gain) on the USD denominated subordinated loan note due to strengthening of the currency against GBP over the six months to 30 June 2026. Mismatches arising on application of IFRS 17 primarily relates to a mismatch which occurs in relation to non-profit business in the With- Profits Fund generating a £38 million loss in the six months to 30 June 2026 (30 June 2025: £1 million gain). This mismatch increased in the six months to 30 June 2026 due to a reduction in the fair value of non-profit business compared to the IFRS 17 value of the liabilities. Over the expected term of the contracts this mismatch is expected to slowly unwind as the profit on non-profit business in the With- Profits Fund is recognised. Amortisation and impairment of intangible assets acquired in business combinations of £13 million (30 June 2025: £11 million) has increased slightly due to an increase in acquisition related intangible assets in 2025. In the six months ended 30 June 2026, restructuring costs and other of £60 million (30 June 2025: £37 million) includes £20 million (30 June 2025: £11 million) in relation to actions taken to reduce our cost base and £24 million (30 June 2025: £15 million) of investment to simplify our operating model and develop capabilities across the business to support scalable growth. Restructuring costs also includes £14 million (30 June 2025: £6 million) in relation to the Group's Financial Crime Enhancement Programme described on page 17. The equity holders' tax credit for the six months ended 30 June 2026 is £48 million (30 June 2025: £85 million charge) representing an effective tax rate of 22.5% (30 June 2025: 25.5%). Excluding non-recurring items, the equity holders’ effective tax rate is 26.7% (30 June 2025: 26.1%). The equity holders’ effective tax rate represents a tax credit on the equity holders’ pre-tax loss. This rate diverges from the anticipated tax benefit at the UK statutory effective rate of 25.0% (2025: 25.0%), mainly due to the adverse effects of non-deductible expenses and differences in the taxation of the life insurance business and partly offset by the beneficial effect of utilisation and recognition of tax losses on which no deferred tax was previously recognised. M&G plc Interim Financial Report 2026 13
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Financial review (continued) Capital and liquidity Capital generation Operating capital generation of £372 million (30 June 2025: £408 million) remained resilient despite lower contributions from underlying capital generation of £304 million (30 June 2025: £331 million) and other operating capital generation of £68 million (30 June 2025: £77 million). Total capital generation increased to £375 million for the six months ended 30 June 2026 (30 June 2025: £354 million), as the benefit from tax and market movements offset the impact from restructuring and other movements. The following table shows an analysis of total capital generation: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Asset Management 129 136 275 Life 294 289 478 Corporate Centre (119) (94) (224) Underlying capital generation 304 331 529 Other operating capital generation 68 77 236 Operating capital generation 372 408 765 Market movements 24 (60) 33 Restructuring and other (55) (36) (111) Tax 34 42 146 Total capital generation 375 354 833 Underlying capital generation Underlying capital generation decreased in the six months ended 30 June 2026 to £304 million (30 June 2025: £331 million) reflecting reductions in Asset Management and Corporate Centre, partly offset by an improvement in Life. For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Asset Management 129 136 275 Life 294 289 478 With-profits: PruFund 126 115 234 In-force 123 126 251 New business 3 (11) (17) With-profits: traditional 83 80 174 Annuities 84 99 92 In-force 104 112 226 New business (20) (13) (134) Other life 1 (5) (22) Corporate Centre (119) (94) (224) Underlying capital generation 304 331 529 Asset Management underlying capital generation decreased to £129 million (30 June 2025: £136 million) as the benefit from improved adjusted operating profit was more than offset by changes in capital requirements for market and credit risk. The change in capital is impacted by movements in the seeding portfolio which created an increase in required capital in 2026 compared to a release of capital in the first six months of 2025. The 2025 result also benefited from a non-recurring release of capital following the recalibration of foreign exchange exposures. Life underlying capital generation improved to £294 million (30 June 2025: £289 million) with improvements in with-profits and other partly offset by a reduction in annuities. Underlying capital generation from PruFund increased to £126 million (30 June 2025: £115 million). In-force business generated £123 million (30 June 2025: £126 million) as the impact of reductions in the expected real-world return from 7.8% pa in 2025 to 7.2% pa in 2026 was partially offset by a rise in the present value of future shareholder transfers. PruFund new business impact has increased, contributing £3 million of underlying capital (30 June 2025: £11 million strain), reflecting the positive impact of certain new business being written on a charges less expenses (100:0) model from 1 April 2026. Traditional with-profits business generated underlying capital of £83 million, an increase on the prior period (30 June 2025: £80 million). The movement in the period primarily relates to expense overruns on group pensions business not repeated in 2026 which more than offsets the reduction in expected real-world return as noted for PruFund. Annuities underlying capital generation was £84 million (30 June 2025: £99 million). In-force annuities continued to benefit from expected returns on surplus assets and release of credit reserves; however, the benefit from both was lower in the period compared to 2025 with the expected return benefit being lower due to a reduction in the expected return rate. New business resulted in a capital strain of £20 million (30 June 2025: £13 million) reflecting the writing of BPA Plus transactions during the period. Corporate Centre negative contribution has increased due mainly to the impact from the release of capital held by our Treasury function in 2025 which did not repeat, with a small impact from increased head office costs. M&G plc Interim Financial Report 2026 14
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Financial review (continued) Operating capital generation Operating capital generation decreased to £372 million in the six months ended 30 June 2026 ( 30 June 2025: £408 million) with a reduction in other operating capital generation in addition to the lower underlying capital generation. For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Underlying capital generation 304 331 529 Model improvements 4 (6) 88 Assumption changes — (30) 15 Management actions and other (incl. experience variances) 64 113 133 Other operating capital generation 68 77 236 Operating capital generation 372 408 765 Other operating capital generation contributed £68 million (2025: £77 million) with positive contributions from management actions of £64 million and model developments of £4 million. There were no material assumption changes in the six months ended 30 June 2026 (30 June 2025: £30 million strain), compared with the prior period which included updates to expense assumptions. Management actions and other items contributed £64 million (30 June 2025: £113 million). The principal contributor was a benefit from equity hedge maturities and purchases which was partially offset by a reduction in the present value of future shareholder transfers due to a change in future bonus rates for certain personal pensions business. Non-market experience variances were broadly neutral at £2 million strain (30 June 2025: £52 million strain). Positive contributions from the release of group pensions equalisation reserve and other reserve releases were largely offset by adverse expense variances and other smaller experience items. Total capital generation Total capital generation was £375 million for the six months ended 30 June 2026 (30 June 2025: £354 million). Market movements over the six months to 30 June 2026 have resulted in a gain of £24 million (30 June 2025: £60 million loss). The main driver of market movements is a gain of £261 million (30 June 2025: £94 million loss) arising from an increase in the present value of shareholder transfers less equity hedges, reflecting stronger than expected actual returns achieved on the With-Profits Fund over the six months to 30 June 2026. This is largely offset by a pre-tax loss of £209 million in relation to the impact from revaluation of ground rent assets, which have been removed from the matching adjustment portfolio, following the UK Government's publication of the draft Commonhold and Leasehold Reform Bill in January 2026. Additionally there has been a loss on interest rate swaps, designed to protect the Solvency II capital position in a falling interest rate environment, of £61 million (30 June 2025: £23 million loss). These losses are partly offset by the movement in Solvency Capital Requirements and risk margin net of Transitional Measures on Technical Provisions (TMTP) attributable to market movements which is a benefit of £49 million compared to £64 million in the six months ended 30 June 2025 driven by a release of annuity capital due to the material rise in yields reducing longevity risk capital. Restructuring costs and other movements has increased to a loss of £55 million (30 June 2025: £36 million) in line with the increase in IFRS costs. Capital generation with respect to tax has reduced to £34 million over the six months to 30 June 2026 (30 June 2025: £42 million). Benefits from current tax credits of £37 million (30 June 2025: £29 million) and an increase in net deferred tax assets of £4 million (30 June 2025: £15 million net reduction) were partly offset by a £7 million reduction in the loss absorbing capacity of deferred tax (30 June 2025: £28 million increase). Capital position Shareholder Solvency II surplus and ratio £8.4bn £8.3bn £8.5bn £3.4bn £3.6bn £3.5bn ¢ Own funds ¢ SCR The Group’s shareholder Solvency II coverage ratio has increased to 247% (31 December 2025: 242%). Shareholder Solvency II surplus remained at £5.0 billion as at 30 June 2026 (31 December 2025: £5.0 billion), with a reduction in the SCR offsetting a decrease in eligible own funds. Eligible own funds includes Present Value of future Shareholder Transfers (PVST) of £4.8 billion (31 December 2025: £4.6 billion). The stable surplus reflects the total capital generation of £375 million offset by the payment of dividends to shareholders and the purchase of shares for the Employee Benefit Trust. The reduction in SCR follows an increased level of equity hedging and the rise in yields. Our With-Profits Fund continues to have a substantial Solvency II surplus and a coverage ratio of 375% (31 December 2025: 342%). The increase in surplus and ratio reflects expected surplus from in- force business and positive management actions. The regulatory Solvency II coverage ratio of the Group as at 30 June 2026 is 181% (31 December 2025: 178%). This view of solvency combines the shareholder position and the With-Profits Fund, but excludes all surplus within the With-Profits Fund. M&G plc Interim Financial Report 2026 15 30 June 2026 30 June 2025 31 December 2025 230%247% 242%
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Financial review (continued) Leverage Ratio For the six months ended 30 June For the year ended 31 December 2026 Restated 2025 Restated 2025 £m £m £m Solvency II value of subordinated debt 2,443 2,470 2,487 Shareholder Solvency II own funds 8,376 8,265 8,500 Leverage ratio 29% 30% 29% We have updated the methodology for our leverage ratio which is now defined as the Solvency II value of subordinated debt as a percentage of the shareholder view of M&G plc's Solvency II available own funds. Previously the numerator was the nominal value of the debt which was inconsistent with how the debt was valued within the Solvency II own funds measure. Comparatives have been restated on the new basis. Our leverage ratio has remained at 29% (31 December 2025: 29%) as the reduction in value of debt is offset by decrease in own funds. Using the previous methodology the leverage ratio would have been 33% (30 June 2025: 33%; 31 December 2025: 32%). Liquidity The following table shows the movement in cash and liquid assets held by the Group’s holding companies during the period: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Opening cash and liquid assets at the beginning of the period 727 730 730 Cash remittances from subsidiaries 433 432 746 Corporate costs (70) (70) (135) Interest paid on core structural borrowings (83) (83) (166) Cash dividends paid to equity holders (328) (321) (482) Shares purchased by employee benefit trust (71) (15) (46) Acquisition of and capital injections into subsidiaries — (1) (1) Interest incomei 11 15 27 Other 30 28 54 Closing cash and liquid assets at the end of the periodi 649 715 727 The cash and liquid assets held by the Group's holding companies of £649 million at 30 June 2026 has reduced since the start of the year. Cash remittances from subsidiaries continue to reflect the underlying strength of their capital position and are £433 million in the six months to 30 June 2026 (30 June 2025: £432 million). The interest paid on the structural borrowings remains at £83 million (30 June 2025: £83 million) while the slightly reduced average cash balance attracted lower interest income of £11 million (30 June 2025: £15 million). Cash dividends paid to equity holders increased to £328 million (30 June 2025: £321 million) reflecting the higher dividend per share declared in March 2026. Further shares were purchased by the employee benefit trust in the period totalling £71 million (30 June 2025: £15 million) as part of share plan award commitments. Other movements in cash and liquid assets held by the holding companies represent the payments that arise in the normal course of business, including Group tax relief of £28 million (30 June 2025: £18 million). i Closing cash and liquid assets at 30 June 2026 included a £589 million (£660 million as at 30 June 2025, £673 million as at 31 December 2025) intercompany loan asset with Prudential Capital plc, which acts as the Group’s treasury function. Interest income is in relation to these loans. M&G plc Interim Financial Report 2026 16
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Risk management statement The principal risks we are currently facing and to which we will continue to be exposed remain broadly unchanged from those detailed in the 2025 Annual Report and Accounts, which are: business environment and market forces; people; sustainability and ESG; financial (investment, credit, market, corporate liquidity and insurance); operational (including resilience, third-party suppliers, change and technology); regulatory; reputational; and conduct risks. The following is highlighted as notable in relation to our principal risks: – External macroeconomic and geopolitical developments as well as domestic factors continue to weigh on market conditions and financial risks. Heightened tensions in the Middle East have driven increased market volatility, including for oil and gas prices. The latter could place upward pressure on inflation, further weighing on economic growth, with potential implications for market conditions and interest rates. While broader market and economic contagion risks remain, the Group’s strong solvency position provides resilience against adverse market conditions and continued uncertainty. Within the UK and European markets, there are ongoing fiscal and legislative risks, including potential changes to tax legislation and interpretation. – With respect to technology and artificial intelligence, there is a range of emerging risks driven by the fast pace of technological advancement, including AI-enhanced malicious cyber-attacks, AI-assisted disinformation, technology resilience risks, and the opportunity costs of failing to optimise new technology to drive better outcomes for our clients and operational efficiency. We actively monitor the external threat landscape, with incidents continuing to affect organisations across multiple sectors alongside reviewing and upgrading controls and oversight for new technology deployment. – The Group continues to focus on operational resilience, including cyber security, technology resilience and third-party service dependencies, against the backdrop of an evolving external threat environment. – The rigorous regulatory landscape is continuing to evolve and we remain focused on adapting to meet the expectations of our regulators. This includes our dedicated Financial Crime Enhancement Programme which is continuing to strengthen and mature our financial crime framework, processes and controls, as well as implementing an enhanced target operating model. – Management continues to enhance the effectiveness and maturity of the risk and control environment across M&G plc, with particular focus on third-party, data, model and sustainability risk management, reflecting evolving business, regulatory and stakeholder expectations. – An updated version of the UK Corporate Governance Code (the Code) was published in January 2024. The most significant changes relate to internal controls (Provision 29), and these apply to reporting years starting on or after 1 January 2026. Management continues to progress activities to prepare for Provision 29, including the implementation of changes to existing processes and procedures. A dry run of the Provision 29 assessment process was recently undertaken to test the assessment methodology, governance arrangements and supporting evidence framework. The results have informed further enhancements to the approach ahead of formal reporting. M&G plc Interim Financial Report 2026 17
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Statement of Directors’ responsibilities The Directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority and that the interim management report includes a true and fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely: – an indication of important events that have occurred during the first six months and their impact on the condensed consolidated interim financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and – material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report. The maintenance and integrity of the M&G plc website is the responsibility of the Directors; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that might have occurred to the condensed consolidated interim financial statements since they were initially presented on the website. The Directors of M&G plc are listed in the M&G plc annual report for 31 December 2025. A list of current Directors is maintained on the M&G plc website: group.mandg.com. By order of the board: Andrea Rossi Kathryn McLeland Group Chief Executive Officer Chief Financial Officer 2 September 2026 2 September 2026 M&G plc Interim Financial Report 2026 18
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Independent review report to M&G plc Report on the condensed consolidated interim financial statements Our conclusion We have reviewed M&G plc’s condensed consolidated interim financial statements (the “interim financial statements”) in the Interim financial report of M&G plc for the six month period ended 30 June 2026 (the “period”). Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority. The interim financial statements comprise: – the condensed consolidated statement of financial position as at 30 June 2026; – the condensed consolidated income statement and condensed consolidated statement of comprehensive income for the period then ended; – the condensed consolidated statement of cash flows for the period then ended; – the condensed consolidated statement of changes in equity for the period then ended; and – the explanatory notes to the interim financial statements. The interim financial statements included in the Interim financial report of M&G plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority. Basis for conclusion We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’ issued by the Financial Reporting Council for use in the United Kingdom (“ISRE (UK) 2410”). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. We have read the other information contained in the Interim financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements. Conclusions relating to going concern Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the Group to cease to continue as a going concern. Responsibilities for the interim financial statements and the review Our responsibilities and those of the directors The Interim financial report, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim financial report in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority. In preparing the Interim financial report, including the interim financial statements, the directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. Our responsibility is to express a conclusion on the interim financial statements in the Interim financial report based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. Use of this report This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom’s Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. PricewaterhouseCoopers LLP Chartered Accountants London 2 September 2026 M&G plc Interim Financial Report 2026 19
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Interim financial statements Condensed consolidated income statement (unaudited) For the six months ended 30 June For the year ended 31 December 2026 2025 2025 Note £m £m £m Insurance revenue 4 2,297 1,986 4,425 Insurance service expenses (1,508) (1,451) (2,935) Net expenses from reinsurance contracts held (25) (21) (24) Insurance service result 764 514 1,466 Interest revenue from financial assets not measured at fair value through profit or loss (FVTPL) 278 291 578 Interest revenue from financial assets measured at FVTPL 1,532 1,517 3,051 Net change in investment contract liabilities without discretionary participation features (DPF) (548) (226) (851) Net credit impairment losses (2) — (3) Other investment returni 6,622 3,715 12,848 Investment return 7,882 5,297 15,623 Finance expenses from insurance contracts issued (7,385) (4,184) (13,900) Finance expenses from reinsurance contracts held (22) (25) 54 Net insurance finance expenses (7,407) (4,209) (13,846) Net insurance and investment result 1,239 1,602 3,243 Fee income 5 565 527 1,064 Other income 54 31 75 Administrative and other expenses 6 (1,348) (1,394) (2,725) Finance costs 6 (68) (68) (138) Movements in third party interest in consolidated funds (142) (148) (226) Share of profit from joint ventures 4 9 17 Profit before taxii 304 559 1,310 Tax charge attributable to policyholders’ returns 7 (517) (226) (871) (Loss)/profit before tax attributable to equity holders (213) 333 439 Total tax charge (469) (311) (996) Less tax charge attributable to policyholders’ returns 7 517 226 871 Tax credit/(charge) attributable to equity holders 7 48 (85) (125) (Loss)/profit for the period (165) 248 314 (Loss)/profit for the period: Attributable to equity holders of M&G plc (170) 243 302 Attributable to non-controlling interests 5 5 12 Total (loss)/profit for the period (165) 248 314 Earnings per share: Basic (pence per share) 8 (7.1) 10.1 12.6 Diluted (pence per share) 8 (7.1) 10.0 12.3 i Other investment return consists of dividend income of £1,042m (30 June 2025: £1,031m, 31 December 2025: £1,818m), net gains on financial assets measured at FVTPL of £5,200m (30 June 2025: £2,115m, 31 December 2025: £10,035m), rental income from investment properties of £447m (30 June 2025: £454m, 31 December 2025: £912m), net losses on investment properties of £28m (30 June 2025: £452m net gains, 31 December 2025: £280m net gains) and foreign exchange losses of £39m (30 June 2025: £337m, 31 December 2025: £197m). ii Profit before tax comprises the pre-tax result attributable to equity holders and an amount equal and opposite to the tax charge attributable to policyholders' returns. This is the formal measure of profit or loss before tax under IFRS, but it is not the result attributable to equity holders. This is principally because the corporate taxes of the Group include taxes borne by policyholders. These amounts are required to be included in the tax charge of the Company under IFRS. The tax charge attributable to policyholders' returns is removed from the Group’s total profit before tax in arriving at the Group’s (loss)/profit before tax attributable to equity holders. As the net of tax profits attributable to policyholders is zero, the Group’s pre-tax profit attributable to policyholders is an amount equal and opposite to the tax charge attributable to policyholders included in the total tax charge. M&G plc Interim Financial Report 2026 20
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Condensed consolidated statement of comprehensive income (unaudited) For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m (Loss)/profit for the period (165) 248 314 Items that may be reclassified subsequently to profit or loss: Exchange movements arising on foreign operationsi (3) 2 16 Other comprehensive (loss)/income on items that may be reclassified subsequently to profit or loss (3) 2 16 Items that will not be reclassified to profit or loss: Gain/(loss) on remeasurement of defined benefit pension scheme 14 6 (2) Tax on remeasurement of defined benefit pension scheme (4) (1) 1 Other comprehensive income/(loss) on items that will not be reclassified to profit or loss 10 5 (1) Other comprehensive income for the period, net of related tax 7 7 15 Total comprehensive (loss)/income for the period (158) 255 329 Attributable to equity holders of M&G plc (162) 251 315 Attributable to non-controlling interests 4 4 14 Total comprehensive (loss)/income for the period (158) 255 329 i Of the exchange movements arising on foreign operations, £2m loss is attributable to equity holders of M&G plc (six months ended 30 June 2025: £3m gain, year ended 31 December 2025: £14m gain) and £1m loss is attributable to non-controlling interests (six months ended 30 June 2025: £1m loss, year ended 31 December 2025: £2m gain). M&G plc Interim Financial Report 2026 21
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Condensed consolidated statement of financial position (unaudited) As at 30 June 2026 As at 31 December 2025 Note £m £m Assets Goodwill and intangible assets 1,780 1,754 Deferred acquisition costs 30 25 Defined benefit pension asset 10 47 43 Investment in joint ventures accounted for using the equity method 251 250 Property, plant and equipment 822 1,537 Investment property 14,149 14,243 Deferred tax assets 7 511 422 Insurance contract assets 11 46 49 Reinsurance contract assets 11 1,001 1,067 Equity securities and pooled investment funds 75,361 70,749 Loans 3,988 4,011 Debt securities 66,554 66,908 Derivative assets 917 1,258 Deposits 17,854 17,648 Current tax assets 83 76 Accrued investment income and other debtors 3,777 3,308 Assets held for sale 2 2,370 2,349 Cash and cash equivalents 5,417 4,904 Total assets 194,958 190,601 Equity Share capital 121 121 Share premium reserve 392 391 Shares held by employee benefit trusts (49) (41) Treasury shares (6) (6) Retained earnings 13,770 14,279 Other reserves (11,608) (11,608) Equity attributable to equity holders of M&G plc 2,620 3,136 Non-controlling interests 45 52 Total equity 2,665 3,188 Liabilities Insurance contract liabilities 11 151,068 147,545 Reinsurance contract liabilities 11 248 260 Investment contract liabilities without discretionary participation features (DPF) 12 11,903 11,507 Third party interest in consolidated funds 10,401 10,346 Subordinated liabilities and other borrowings 13 6,074 6,519 Defined benefit pension liability 10 251 261 Deferred tax liabilities 7 1,242 1,040 Lease liabilities 387 393 Current tax liabilities 186 123 Derivative liabilities 2,568 2,471 Other financial liabilities 1,162 1,101 Provisions 85 90 Accruals, deferred income and other liabilities 5,705 4,769 Liabilities held for sale 2 1,013 988 Total liabilities 192,293 187,413 Total equity and liabilities 194,958 190,601 M&G plc Interim Financial Report 2026 22
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Condensed consolidated statement of changes in equity (unaudited) Share capital Share premium Shares held by employee benefit trusts Treasury shares Retained earnings Other reserves Total equity attributable to equity holders of M&G plc Non- controlling interests Total equity £m £m £m £m £m £m £m £m £m As at 1 January 2026 121 391 (41) (6) 14,279 (11,608) 3,136 52 3,188 Loss for the period — — — — (170) — (170) 5 (165) Other comprehensive income for the period — — — — 10 (2) 8 (1) 7 Total comprehensive loss for the period — — — — (160) (2) (162) 4 (158) Dividends paid to equity holders of M&G plc — — — — (328) — (328) — (328) Dividends paid to non-controlling interests — — — — — — — (11) (11) Proceeds from shares issued to settle employee share option schemes — 1 — — — — 1 — 1 Shares distributed by employee trusts or from treasury shares — — 63 — (63) — — — — Exercised employee share-based payments — — — — 35 (35) — — — Expense recognised in respect of share- based payments — — — — — 28 28 — 28 Shares issued to, acquired by or transferred to employee trusts — — (71) — — — (71) — (71) Tax effect of items recognised directly in equity — — — — 7 9 16 — 16 Net increase/(decrease) in equity — 1 (8) — (509) — (516) (7) (523) As at 30 June 2026 121 392 (49) (6) 13,770 (11,608) 2,620 45 2,665 Share capital Share premium Shares held by employee benefit trusts Treasury shares Retained earnings Other reserves Total equity attributable to equity holders of M&G plc Non- controlling interests Total equity £m £m £m £m £m £m £m £m £m As at 1 January 2025 120 383 (9) (6) 14,435 (11,642) 3,281 42 3,323 Profit for the period — — — — 243 — 243 5 248 Other comprehensive income for the period — — — — 5 3 8 (1) 7 Total comprehensive income for the period — — — — 248 3 251 4 255 Non-controlling interests arising through business combinations — — — — — — — 5 5 Dividends paid to equity holders of M&G plc — — — — (321) — (321) — (321) Dividends paid to non-controlling interests — — — — — — — (11) (11) Proceeds from shares issued to settle employee share option schemes — 2 — — — — 2 — 2 Shares distributed by employee trusts or from treasury shares — — 8 — (8) — — — — Exercised employee share-based payments — — — — 32 (32) — — — Expense recognised in respect of share- based payments — — — — — 25 25 — 25 Shares issued to, acquired by or transferred to employee trusts — — (15) — — — (15) — (15) Tax effect of items recognised directly in equity — — — — 3 3 6 — 6 Net increase/(decrease) in equity — 2 (7) — (46) (1) (52) (2) (54) As at 30 June 2025 120 385 (16) (6) 14,389 (11,643) 3,229 40 3,269 M&G plc Interim Financial Report 2026 23
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Condensed consolidated statement of changes in equity (unaudited) (continued) Share capital Share premium Shares held by employee benefit trusts Treasury shares Retained earnings Other reserves Total equity attributable to equity holders of M&G plc Non- controlling interests Total equity £m £m £m £m £m £m £m £m £m As at 1 January 2025 120 383 (9) (6) 14,435 (11,642) 3,281 42 3,323 Profit for the year — — — — 302 — 302 12 314 Other comprehensive income for the year — — — — (1) 14 13 2 15 Total comprehensive income for the year — — — — 301 14 315 14 329 Non-controlling interests arising through business combinations — — — — — — — 9 9 Dividends paid to equity holders of M&G plc — — — — (482) — (482) — (482) Dividends paid to non-controlling interests — — — — — — — (13) (13) Proceeds from shares issued to settle employee share option schemes 1 8 — — — — 9 — 9 Shares distributed by employee trusts or from treasury shares — — 16 — (16) — — — — Exercised employee share-based payments — — — — 34 (34) — — — Expense recognised in respect of share- based payments — — — — — 47 47 — 47 Shares issued to, acquired by or transferred to employee trusts — — (48) — — — (48) — (48) Tax effect of items recognised directly in equity — — — — 7 7 14 — 14 Net increase/(decrease) in equity 1 8 (32) — (156) 34 (145) 10 (135) As at 31 December 2025 121 391 (41) (6) 14,279 (11,608) 3,136 52 3,188 M&G plc Interim Financial Report 2026 24
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Condensed consolidated statement of cash flows (unaudited) For the six months ended 30 June For the year ended 31 December 2026 Restatedi 2025 2025 £m £m £m Cash flows from operating activities: Profit before tax 304 559 1,310 Non-cash and other movements in operating assets and liabilities included in profit before tax: Investments (3,889) (1,082) (6,204) Other non-investment and non-cash assets 356 (392) (562) Insurance and reinsurance contract liabilities 3,520 (401) 6,238 Investment contract liabilities 396 (1,189) (694) Other liabilities (including operational borrowings) 532 3,000 2,284 Interest income and expense and dividend income included in profit before tax (2,675) (2,559) (5,138) Other non-cash items 60 589 (909) Operating cash items: Interest receipts 1,803 1,845 3,644 Interest payments (203) (158) (282) Dividend receipts 966 949 1,819 Tax paidii (291) (198) (553) Net cash flows from operating activitiesiii 879 963 953 Cash flows from investing activities: Purchases of property, plant and equipment (38) (75) (175) Proceeds from disposal of property, plant and equipment 3 — 9 Net cash paid on acquisition of subsidiaries, joint ventures and associatesiv (27) (33) (102) Divestment of subsidiaries by consolidated private equity vehiclesv 176 112 116 Investment in subsidiaries by consolidated private equity vehiclesv (54) — — Net cash flows from investing activities 60 4 (152) Cash flows from financing activities: Interest paidvi (83) (83) (166) Lease capital repayments (14) (25) (32) Proceeds from shares issued 1 2 9 Dividends paid to equity holders of M&G plc (328) (321) (482) Dividends paid to non-controlling interests (11) (11) (13) Acquisition of additional interest in subsidiaryi — (13) (13) Net cash flows from financing activities (435) (451) (697) Net increase in cash and cash equivalents 504 516 104 Cash and cash equivalents at 1 January 4,904 4,838 4,838 Effect of exchange rate changes on cash and cash equivalents 9 (71) (38) Cash and cash equivalents at end of period 5,417 5,283 4,904 i The comparative amount of £13m for Acquisition of additional interests in subsidiary for the six months ended 30 June 2025 has been re-presented from Cash flows from investing activities to Cash flows from financing activities, consistent with 31 December 2025. ii Tax paid for the six months ended 30 June 2026 includes £177m (30 June 2025: £91m, year ended 31 December 2025: £338m) paid on profit taxable at policyholder rather than shareholder rates. iii Cash flows in respect of other borrowings of the With-Profits Fund, which principally relate to consolidated investment funds, are included within cash flows from operating activities. iv In the year ended 31 December 2025 net cash paid on the acquisition of subsidiaries, joint ventures and associates was £50m (30 June 2025: £50m) net of £17m cash acquired (30 June 2025: £17m), and £69m (30 June 2025: nil) of cash paid related to the acquisition of subsidiaries, joint ventures and associates held by the With-Profits Fund, net of nil cash acquired. No such acquisitions occurred in the six months ended 30 June 2026. The cash outflow in the six months ended 30 June 2026 included a £27m deferred acquisition payment in respect of P Capital Partners, which was acquired on 3 June 2025. v Investment in/Divestment of subsidiaries by consolidated private equity vehicles represents the amount received or paid in relation to the sale or purchase of underlying investee companies held by the Group's consolidated private equity vehicles. vi Interest paid on subordinated liabilities. M&G plc Interim Financial Report 2026 25
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1 Basis of preparation and material accounting policies 1.1 Basis of preparation The condensed consolidated financial statements for the six months ended 30 June 2026 comprise the condensed consolidated financial statements of M&G plc (‘the Company’) and its subsidiaries (together referred to as ‘the Group’). The condensed consolidated financial statements are unaudited but have been reviewed by our auditors, PricewaterhouseCoopers LLP. The condensed consolidated financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting (IAS 34), as adopted by the United Kingdom, and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. The accounting policies and the key sources of estimation uncertainty applied in the condensed consolidated financial statements are consistent with those that applied in the annual 2025 consolidated financial statements, except for the new standards, interpretations and amendments that became effective in the current period, as stated in Note 1.2 below. The condensed consolidated financial statements are stated in million pounds sterling, the Group’s presentation currency. The condensed consolidated financial statements do not include all the information and disclosures required in the Group’s annual consolidated financial statements and do not comprise statutory accounts within the meaning of section 434 of the Companies Act 2006. The Group’s 2025 Annual Report and Accounts for the year ended 31 December 2025 was delivered to the Registrar of Companies. The report of the auditors PricewaterhouseCoopers LLP on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under section 498 of the Companies Act 2006. Going concern The Directors have a reasonable expectation that the Group as a whole has adequate resources to continue in operational existence for the foreseeable future and for a period of at least 12 months from the date of approval of the condensed consolidated financial statements. To satisfy themselves of the appropriateness of the use of the going concern assumption in relation to the condensed consolidated financial statements, the Directors have considered the liquidity projections of the Group, including the impact of applying specific liquidity stresses. The Directors also considered the ability of the Group to access external funding sources and the management actions that could be used to manage liquidity. In addition, the Directors also gave particular attention to the solvency projections of the Group under a base scenario and its sensitivity to various individual economic stresses and tested the resilience of the balance sheet to adverse scenarios using reverse stress testing. The impact of the following individual stresses on solvency were considered as part of the assessment: – 20% fall in equity prices; – 20% fall in property prices; – (50bps) parallel shift in nominal yields; – 20% of the credit portfolio downgrading by one full letter; and – +100bps spread widening (A-rated assets). The results of the assessment demonstrated the ability of the Group to meet all obligations, including payments to shareholders and debt holders, and future business requirements for the foreseeable future. In addition, the assessment demonstrated that the Group was able to remain above its regulatory solvency requirements in a stressed scenario. For this reason, the Directors continue to adopt the going concern basis in preparing the condensed consolidated financial statements. Presentation of risk and capital management disclosures We have provided additional disclosures relating to the nature and extent of certain financial risks and capital management in the Supplementary Information section of this report. M&G plc Interim Financial Report 2026 26
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1 Basis of preparation and material accounting policies (continued) 1.2 New accounting pronouncements 1.2.1 New accounting pronouncements adopted by the Group The Group has adopted the following amendments to standards which became effective from 1 January 2026: – Amendments to the classification and measurement of financial instruments (Amendments to IFRS 9 and IFRS 7), issued in May 2024 and effective from 1 January 2026; and – Annual improvements to IFRS accounting standards — Volume 11, issued in July 2024 and effective from 1 January 2026. The above amendments do not have a material effect on these condensed consolidated financial statements. 1.2.2 New accounting pronouncements not yet effective The following standards have been issued which are effective for periods beginning on or after 1 January 2027: IFRS 18 Presentation and Disclosure in Financial Statements (IFRS 18) – Issued in April 2024 (endorsed by the UK Endorsement Board) and effective from 1 January 2027 IFRS 18 will replace IAS 1 Presentation of Financial Statements and introduces new requirements around: – categories and subtotals to be used in the statement of profit or loss; – specific disclosures for management-defined performance measures (MPMs); and – location, aggregation and disaggregation of financial information. IFRS 18 will require an entity to classify all income and expenses within its statement of profit or loss into one of five categories: operating; investing; financing; income taxes; and discontinued operations. Entities will also be required to present subtotals and totals for ‘operating profit or loss’, ‘profit or loss before financing and income taxes’ and ‘profit or loss'. IFRS 18 introduces the concept of MPMs which are metrics defined from the statement of profit or loss and are used to communicate management’s views on financial performance externally. IFRS 18 requires disclosure of information about all of an entity’s MPMs within a single note to the financial statements and requires further disclosures on how the measure is calculated and a reconciliation to the most comparable subtotal. IFRS 18 also provides guidance on the location of information in the primary financial statements and the notes. It also requires aggregation and disaggregation of information to be performed with reference to similar and dissimilar characteristics. The adoption of the standard will have a significant impact on how the Group’s income statement is presented and may potentially impact disclosures on our alternative performance measures and the accounting measurement choice for certain investments. The expectation is that adjusted operating profit before tax will be an MPM. The Group has mobilised a cross‑functional project to implement the requirements of IFRS 18 and is making good progress. Other The following new standards and amendments effective for periods beginning on or after 1 January 2027 are not expected to have a significant impact on the Group: – IFRS 19 Subsidiaries without Public Accountability: Disclosures (IFRS 19) – Issued in May 2024 (endorsed by the UK Endorsement Board) and effective from 1 January 2027 – IFRS 20 Regulatory Assets and Regulatory Liabilities (IFRS 20) - Issued in May 2026 and effective from 1 January 2029 (subject to endorsement by the UK Endorsement Board) – Translation to a Hyperinflationary Presentation Currency (IAS 21), issued in November 2025 and effective from 1 January 2027 (subject to endorsement by the UK Endorsement Board). M&G plc Interim Financial Report 2026 27
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2 Group structure and products 2.1 Group composition An extract of the Group structure that gives an overview of the composition of the Group can be found in the notes to the Group’s 2025 consolidated financial statements. There have been no significant changes in the period to the Group composition. M&G plc is the holding company of the Group. The Group consolidates underlying investee entities held by collective investment vehicles when it is deemed to have accounting control of both the investment vehicle and the underlying entity. During the six months ended 30 June 2026, the Group ceased to have accounting control over a significant underlying investee entity and therefore it is no longer consolidated in the Group’s financial statements. At the point of deconsolidation, the remaining goodwill of £100m attributed to the underlying entity was impaired, with the impairment charge recognised in Administrative and other expenses and a gain on deconsolidation of £190m was recognised in Other investment return. The carrying value of Property, Plant and Equipment and Subordinated Liabilities and other borrowings, the significant balance sheet line items attributed to the underlying entity, included in the consolidated balance sheet at 31 December 2025 were £855m and £947m respectively. 2.2 Held for sale As at 30 June 2026 As at 31 December 2025 £m £m Investment properties 639 387 Equity securities and pooled investment fundsi, ii 85 94 Loans 932 929 Other assets (including cash and cash equivalents)iii 714 939 Assets held for sale 2,370 2,349 Other liabilitiesiii 1,013 988 Liabilities held for sale 1,013 988 i Includes £72m (31 December 2025: £40m) of seed capital classified as held for sale as it is expected to be divested within 12 months. ii During the year ended 31 December 2025, the Group disposed of a portfolio of pooled investment funds as part of a coordinated sale to an external fund not controlled by the Group. As part of the transaction, certain investments, with a value of £54m, had a trade date of 1 January 2026 or 1 January 2027. Those with a trade date of 1 January 2027 have a value of £13m, and remain classified as held for sale as at 30 June 2026. iii Includes £697m (31 December 2025: £910m) of assets held for sale and £994m (31 December 2025: £974m) of liabilities held for sale in relation to the Group’s consolidated infrastructure capital private equity vehicles. As at 30 June 2026 and 31 December 2025, the Group’s equity release mortgage portfolio, with a carrying value of £932m and £929m respectively, met the criteria for being classified as held for sale. The entire portfolio was subsequently disposed of in July 2026 as described in Note 17. 2.3 Insurance and investment products A full description of the main contract types written by the Group's insurance entities as at 31 December 2025 is included in the notes to the Group’s 2025 consolidated financial statements. During the six months ended 30 June 2026, the Group launched its new With-Profits Bulk Purchase Annuity proposition (BPA Plus). Further details are provided in Note 3.1. Since April 2026, certain PruFund business has been written effectively on a 100:0 basis, whereby, the policyholder bears the investment risk while the shareholder bears the expense risk and is compensated using a charges less expenses model. The Group also launched PruFund on an external platform during the period under the same model. M&G plc Interim Financial Report 2026 28
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3 Segmental analysis The Group’s operating segments are defined and presented in accordance with IFRS 8: Operating Segments on the basis of the Group’s management reporting structure and its financial management information. The Group’s primary reporting format is by product type. The Chief Operating Decision Maker for the Group is the Group Executive Committee. Reporting of assets and liabilities by reportable segment has not been included below, as this is not information that is provided to the Group Executive Committee on a regular basis. 3.1 Operating segments The Group’s operating segments are: Asset Management The Group’s investment management capability is offered to both Wholesale and Institutional clients. The Group’s Wholesale clients invest through either UK domiciled OEICs or Luxembourg domiciled SICAVs and have access to a broad range of actively managed investment products, including Equities, Fixed Income and Multi-Asset. The Group serves these clients through its many business-to- business relationships both in the UK and overseas, which include independent financial advisers, high-street banks and wealth managers. The Group’s Institutional clients, include pension funds, insurance companies and banks from around the world, who invest through segregated mandates and pooled funds into a diverse range of Equities, Fixed Income and Real Estate investment products and services. The Asset Management segment generates revenues by charging fees which are typically based on the level of assets under management. The Asset Management segment also earns investment management revenues from the management of a significant proportion of Life assets. Life The Life business operates in the savings and pensions market and includes corporate pension solutions, individual life and pensions, international solutions and advice. Corporate pension solutions consists of our Bulk Purchase Annuity (BPA) business which includes traditional, value share and with- profits BPAs, along with workplace pensions. During 2026 the Group launched BPA Plus which is a with-profits BPA proposition that provides guaranteed pension scheme benefits similar to a traditional BPA, with the potential for discretionary cash bonuses linked to favourable credit experience on the assets backing the liabilities. Individual products include annuity contracts: level annuities, which provide a fixed annuity payment; fixed increase annuities, which incorporate a periodic automatic fixed increase in annuity payments; inflation-linked annuities, which incorporate a periodic increase based on a defined inflation index; and with-profits annuities, written in the With-Profits Fund, combining income features of annuity contracts with the investment-smoothing features of with-profits products. Some inflation-linked annuities have minimum and/or maximum increases relative to the corresponding inflation index. The life products are primarily whole of life assurance, endowment assurances, term assurance contracts, income protection, and critical illness products. Investment products include unit-linked contracts and the Prudential bond offering, which mainly consists of single-premium-invested whole of life policies, where the client has the option of taking ad hoc withdrawals, regular income or the option of fully surrendering their bond. Investment products also include the Prudential Guaranteed Income Plan which provides, in exchange for a lump‑sum investment, a guaranteed regular income over a fixed term, typically between 3 and 30 years, and/or a guaranteed lump‑sum payment at the end of the term. All of the Group’s products that give access to the PruFund investment proposition are included in Life. The PruFund investment proposition gives customers access to savings contracts with smoothed investment returns and a wide choice of investment profiles. International solutions include our savings businesses based in Ireland and Poland (Prudential International Assurance plc). The Group’s products which give non-UK clients access to the PruFund investment proposition are also included. Advice provides access to a range of retirement, savings and investment management solutions to its clients. These products are distributed to clients through intermediaries and advisers, and include Retirement Account (a combined individual pension and income drawdown product), individual pensions, ISAs, collective investments and a range of on-shore and off-shore bonds. Corporate Centre Corporate Centre includes central corporate expenses and debt costs. M&G plc Interim Financial Report 2026 29
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3 Segmental analysis (continued) 3.2 Adjusted operating profit before tax methodology Adjusted operating profit before tax is one of the Group’s non-GAAP alternative performance measures, which complements IFRS GAAP measures and is key to decision-making and the internal performance management of operating segments. Details of the methodology are presented below and should be read in conjunction with the accounting policies in the Annual Report and Accounts: Fee based business For the Group’s fee based business written by Asset Management and Life segments, adjusted operating profit before tax includes fees received from clients and operating costs for the business including overheads, expenses required to meet regulatory requirements and regular business development/restructuring and other costs. Costs associated with fundamental Group-wide restructuring and transformation are not included in adjusted operating profit before tax. Business written in the With-Profits Fund For the Group’s business written in the With-Profits Fund in the Life segment (other than BPA Plus), adjusted operating profit before tax includes the release of the risk adjustment and the expected release of the CSM for the period. The expected CSM release for the period is calculated as the CSM at the start of the period, updated to reflect long-term expected investment returns including the CSM generated on expected new business over the period, multiplied by the expected amortisation factor for the period. – The long-term expected investment returns are calculated as at 1 January 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 to back the asset shares. For 2026 onwards the methodology has been updated to select the point on the risk-free rate-curve which best matches the average duration of the business in determining the risk-free rate. In the calculation of the expected CSM release for with-profits business, the long-term expected investment returns for 2026 are 7.2% pa (2025: 7.8% pa). – The expected amortisation factor for the period reflects the expected pattern of release of the CSM for the with-profits business over the life of the contracts. The expected amortisation factor varies for PruFund and Traditional business due to differing maturity profiles; for PruFund the factor used for 2026 is 11.0% pa (2025: 11.1% pa) and for Traditional is 13.5% pa (2025: 13.1% pa). Adjusted operating profit before tax for the Group’s business written in the With-Profits Fund also includes the expected investment return for the shareholder’s share of the IFRS value of the excess assets in the Fund. For 2026, the expected return is 5.1% pa (2025: 6.2% pa). As above, the methodology has been updated in determining the rate. Adjusted operating profit for the Life segment does not include the impact of any margins on investment management fee earned by other Group entities. These are recognised in the Asset Management segment as they emerge. The application of IFRS 17 to non-profit contracts in the With-Profits Fund results in a mismatch due to the difference between their value under the IFRS 17 General Measurement Model (GMM) accounting for these contracts (primarily annuities) and how these contracts are treated in determining their fair value when assessing current and future with-profits contracts under the Variable Fee Approach (VFA). Although the impact of this mismatch balances over the life of the current and future with-profits contracts as the CSM under the VFA is set up and released, results for the period do not reflect the long-term economics of the transaction. Therefore, the impact of the mismatch has been excluded from adjusted operating profit before tax. Annuity business For the Group’s annuity products written by the Life segment, including BPA Plus, adjusted operating profit before tax includes the release of the CSM and the risk adjustment for the period. Adjusted operating profit before tax also includes the returns on surplus assets in excess of IFRS 17 liabilities based on long-term expected investment returns, calculated as at 1 January and determined by reference to the risk-free rate plus a risk premium based on the mix of assets. For 2026, the long-term expected investment returns for shareholder-backed annuities is 4.5% pa (2025: 5.2% pa). For 2026 onwards the methodology to calculate the rate has been updated to select the point on the risk-free rate-curve which best matches the average duration of the business. The net effect of changes to the valuation rate of interest due to asset trading and portfolio rebalancing (in both cases, after the asset deployment required to achieve the rates assumed in pricing), together with experience variances, are also included in adjusted operating profit before tax. The results of the intercompany buy-in transaction executed between the trustees of M&G Group Pension Scheme (M&GGPS) and PAC in 2023 are included in adjusted operating profit before tax as this generates economic value for the Group. Adjusted operating profit before tax for annuities excludes the impact of the mismatch resulting from the measurement of fulfilment cash flows using current interest rates and any changes to CSM being measured using locked-in rates. For Value Share BPAs, the adjusted operating profit before tax reflects the net results of the underlying BPA and the reinsurance arrangement after removing the impact of any mismatches that arise on the accounting for these transactions as stated below. The resulting impact mainly represents the contribution of the intermediary fee earned on this arrangement. M&G plc Interim Financial Report 2026 30
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3 Segmental analysis (continued) Corporate Centre For the Corporate Centre adjusted operating profit before tax is the expense incurred to run the head office and the actual investment return on treasury activities and debt costs. Key adjusting items between IFRS profit before tax and adjusted operating profit before tax Certain adjustments that are considered to be non-recurring or strategic, or due to short-term movements not reflective of longer-term performance are made to IFRS profit or loss before tax to determine adjusted operating profit before tax. Adjustments are in respect of short-term fluctuations in investment returns, mismatches arising on the application of IFRS 17, impairment and amortisation in respect of acquired intangibles, costs associated with fundamental Group-wide restructuring and transformation, profit or loss arising on business and corporate transactions and profit or loss before tax from any discontinued operations. Short-term fluctuations in investment returns The adjustment for short-term fluctuations in investment returns represents: – difference between actual CSM release for the period and expected CSM release for the period for with-profits contracts. For non- profit business in the With-Profits Fund it is the CSM release for the period; – movements in the fair value of instruments held to manage equity risk in the future with-profits shareholder transfer and to mitigate interest rate risk for the optimisation of the Group’s capital position on a Solvency II basis; – difference between actual and long-term expected investment return on surplus assets backing the shareholder annuity capital and shareholders’ share of excess assets in the With-Profits Fund measured on an IFRS basis; – foreign exchange movements on the US dollar subordinated debt held in the Corporate Centre; – fair value movements on strategic investments; – impact of short-term credit risk provisioning and experience variances on the measurement of best estimate liabilities, specifically: – the impact of credit risk provisioning for short-term adverse credit risk experience; – the impact of credit risk provisioning for actual upgrade and downgrade experience during the year. This is calculated by reference to current interest rates; – credit experience variance relative to long-term assumptions, reflecting the impact of defaults and other similar experience, such as asset exchanges arising from debt restructuring; and – the impact of market movements on bond portfolio weightings and the subsequent impact on credit provisions. – the elimination on consolidation of the results of the intercompany buy-in transaction executed between the trustees of M&GGPS and PAC in 2023. Mismatches arising on the application of IFRS 17 The application of IFRS 17 results in the following mismatches in valuation basis being recognised in total profit/loss before tax. For the purposes of calculating adjusted operating profit before tax the impact of these mismatches has been excluded. – difference between the value under IFRS 17 GMM for non-profit contracts (primarily annuities) written in the With-Profits Fund and how these contracts are treated in determining their fair value when assessing current and future with-profits contracts under the VFA; – mismatch resulting from measurement of fulfilment cash flows for shareholder non-profit business (primarily annuities) and BPA Plus using current interest rates while related changes to the CSM are measured using locked-in rates; and – mismatches resulting from measurement differences arising on the accounting for Value Share BPAs related to the definition of the insurance service for the annuity contracts compared to the reinsurance contract and the discount rate used for each type of contract. Amortisation and impairment of intangible assets acquired in business combinations Amortisation and impairment of intangible assets (including goodwill) acquired in business combinations are excluded from adjusted operating profit before tax. Profit/(loss) on disposal of businesses and corporate transactions Certain additional items are excluded from adjusted operating profit before tax where those items are considered to be non-recurring or strategic, or considered to be one-off, due to their size or nature, and therefore not indicative of the long-term operating performance of the Group. These include profits or losses arising on corporate transactions (including any liabilities that arise from matters that arose prior to any acquisition by the Group) and costs associated with completing those transactions, and profits or losses on discontinued operations. Restructuring costs and other Restructuring costs and other primarily reflect the shareholder allocation of costs associated with the transformation of our business. These costs represent fundamental Group-wide restructuring and transformation and are therefore excluded from adjusted operating profit before tax. M&G plc Interim Financial Report 2026 31
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3 Segmental analysis (continued) 3.3 Analysis of Group adjusted operating profit before tax by segment For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Asset Management 159 128 280 Life 375 344 764 Corporate Centre (99) (94) (206) Total segmented adjusted operating profit before tax 435 378 838 Short-term fluctuations in investment returnsi (551) (12) (164) Mismatches arising on application of IFRS 17ii (33) 2 (106) Amortisation and impairment of intangible assets acquired in business combinations (13) (11) (52) Profit/(loss) on disposal of business and corporate transactions — 5 (5) Restructuring costs and otheriii (60) (37) (90) IFRS (loss)/profit before tax and non-controlling interests attributable to equity holders (222) 325 421 IFRS profit attributable to non-controlling interestsiv 9 8 18 IFRS (loss)/profit before tax attributable to equity holdersv (213) 333 439 i Losses from short-term fluctuations in investment returns increased significantly in the six months to 30 June 2026 mainly due to a £325m valuation loss following the publication of the UK Government's proposed draft Commonhold and Leasehold Reform Bill in January 2026. This impacted both the valuation of insurance contract liabilities, following the resultant removal of assets from portfolios used to derive the discount rate applied in calculating the liabilities, and the valuation of ground rent assets. The remaining losses include a loss of £61m (30 June 2025: £23m, 31 December 2025: £34m) on interest rate swaps purchased to protect PAC’s Solvency II capital position against falls in interest rates, driven by rises in yields of longer duration in the six months to 30 June 2026 which were larger than those experienced over 2025. There was also a loss of £57m (30 June 2025: £50m, 31 December 2025: £174m) on the hedging instruments held to protect the Solvency II capital position from falling equity markets, due to rising equity markets, and a £5m foreign exchange loss (30 June 2025: £37m gain, 31 December 2025: £30m gain) on the USD denominated subordinated loan note due to strengthening of the currency against GBP over the six months to 30 June 2026. ii Mismatches arising on application of IFRS 17 primarily relates to a mismatch which occurs in relation to non-profit business in the With-Profits Fund generating a £38m loss in the six months to 30 June 2026 (30 June 2025: £1m gain, 31 December 2025: £61m loss). This mismatch increased in the six months to 30 June 2026 due to a reduction in the fair value of non-profit business compared to the IFRS 17 value of the liabilities. Over the expected term of the contracts this mismatch is expected to slowly unwind as the profit on non-profit business in the With-Profits Fund is recognised. iii Restructuring costs and other excluded from adjusted operating profit includes costs that relate to the transformation of our business which are allocated to the shareholder. These differ to restructuring costs presented in the analysis of administrative and other expenses in Note 6 which include costs allocated to the With-Profits Fund. In the six months ended 30 June 2026, restructuring costs and other of £60m (30 June 2025: £37m, 31 December 2025: £90m) includes £20m (30 June 2025: £11m, 31 December 2025: £27m) in relation to actions taken to reduce our cost base and £24m (30 June 2025: £15m, 31 December 2025: £41m) of investment to simplify our operating model and develop capabilities across the business to support scalable growth. Restructuring costs also includes £14m (30 June 2025: £6m, 31 December 2025: £19m) in relation to the Group's Financial Crime Enhancement Programme. iv Excludes non-controlling interests in relation to amortisation of intangible assets acquired in business combinations which is presented net within amortisation and impairment of intangible assets acquired in business combinations. v The tax credit attributable to equity holders of £48m (30 June 2025: £85m tax charge, 31 December 2025: £125m tax charge) results in an IFRS loss for the period of £165m (30 June 2025: £248m profit, 31 December 2025: £314m profit) as presented in the condensed consolidated income statement. 3.4 Analysis of Group revenue by segment The following table shows revenue by segment for the Group: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Life 2,297 1,986 4,425 Total insurance revenue 2,297 1,986 4,425 Asset Managementi 477 442 899 Life 88 85 165 Total fee income 565 527 1,064 Total 2,862 2,513 5,489 i Asset management fee income is net of inter-segment fee income and other presentational differences of £92m (30 June 2025: £79m, 31 December 2025: £182m). The Group has a widely diversified client base. There are no clients whose revenue represents greater than 10% of fee income. M&G plc Interim Financial Report 2026 32
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4 Insurance revenue The Group’s exposure to risks arising from insurance assets and liabilities is different for each component of the Group’s business. The Group’s insurance revenue is presented below for the different components of business. For the six months ended 30 June 2026 With- profits Unit-linked business Annuities and other long-term business Total £m £m £m £m Amounts relating to the changes in the liability for remaining coverage: Expected incurred claims and other expenses 780 16 635 1,431 Change in the risk adjustment for non-financial risk for the risk expired 13 — 15 28 CSM recognised in profit or loss for the services provided 330 6 92 428 Revenue recognised for incurred policyholder tax 355 7 — 362 Amounts relating to the recovery of insurance acquisition cash flows: Allocation of premium 30 — 18 48 Total insurance revenue 1,508 29 760 2,297 For the six months ended 30 June 2025 With- profits Unit-linked business Annuities and other long-term business Total £m £m £m £m Amounts relating to the changes in the liability for remaining coverage: Expected incurred claims and other expenses 769 17 608 1,394 Change in the risk adjustment for non-financial risk for the risk expired 13 — 17 30 CSM recognised in profit or loss for the services provided 280 5 84 369 Revenue recognised for incurred policyholder tax 147 4 — 151 Amounts relating to the recovery of insurance acquisition cash flows: Allocation of premium 25 — 17 42 Total insurance revenue 1,234 26 726 1,986 For the year ended 31 December 2025 With- profits Unit-linked business Annuities and other long-term business Total £m £m £m £m Amounts relating to the changes in the liability for remaining coverage: Expected incurred claims and other expenses 1,556 32 1,240 2,828 Change in the risk adjustment for non-financial risk for the risk expired 25 1 32 58 CSM recognised in profit or loss for the services provided 626 14 190 830 Revenue recognised for incurred policyholder tax 610 11 — 621 Amounts relating to the recovery of insurance acquisition cash flows: Allocation of premium 54 — 34 88 Total insurance revenue 2,871 58 1,496 4,425 Insurance revenue is recognised as services under the group of insurance contracts are provided to policyholders. This is at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services but excludes investment components. The amount of CSM recognised in profit or loss in the period is based on coverage units provided during the current period. The number of coverage units is a quantification of services provided by the contracts in the group, determined by considering for each contract the quantity of benefits provided and its expected coverage period. Services provided to insurance contracts include insurance coverage and, for all direct participating contracts, investment services for managing underlying items on behalf of policyholders (investment-related services). In addition, insurance contracts without direct participation features may also provide investment services for generating an investment return for the policyholder (investment-return service). M&G plc Interim Financial Report 2026 33
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5 Fee income The following table disaggregates fee income by segment: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Management fees 481 447 896 Rebates (9) (7) (15) Performance fees and carried interest 5 2 18 Total Asset Management fee income 477 442 899 Investment contracts without DPF 18 18 31 Platform fees 17 15 29 Advice fees 53 52 105 Total Life fee income 88 85 165 Total fee income 565 527 1,064 6 Administrative and other expenses For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Staff and employment costs 488 454 923 Acquisition costs incurred: Investment contracts without DPF 9 8 16 Other contracts 102 83 181 Acquisition costs deferred: Other contracts (16) (8) (16) Amortisation of deferred acquisition costs: Investment contracts without DPF — — 1 Other contracts 10 6 11 Depreciation of property, plant and equipment 53 71 139 Impairment of property, plant and equipmenti 96 214 316 Amortisation of intangible assets 18 13 30 Impairment of goodwill and intangible assetsii 102 67 82 Restructuring costs 116 69 184 Interest expense 134 147 326 Commission expense 94 80 170 Investment management fees 74 62 106 Property-related costs 127 113 246 Other expenses 401 392 831 1,808 1,771 3,546 Less amounts directly attributable to insurance results: Expenses attributed to insurance acquisition cash flows incurred during the period (110) (75) (192) Other directly attributable expenses (350) (302) (629) Total administrative and other expenses 1,348 1,394 2,725 i Consists of impairment of certain property, plant and equipment held through the Group's infrastructure capital private equity vehicles of £96m (30 June 2025: £214m, 31 December 2025: £316m). These assets are classified as held for sale at 30 June 2026 (30 June 2025: £214m, 31 December 2025: £304m). ii Includes impairment of certain goodwill and intangible assets held through the Group's infrastructure capital private equity vehicles of £100m (30 June 2025: £65m, 31 December 2025: £47m). In addition to the interest expense shown above of £134m (30 June 2025: £147m, 31 December 2025: £326m), the interest expense incurred in respect of subordinated liabilities for the six months ended 30 June 2026 was £68m (30 June 2025: £68m, year ended 31 December 2025: £138m). This is shown as finance costs in the condensed consolidated income statement. M&G plc Interim Financial Report 2026 34
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7 Tax 7.1 Tax charged to the consolidated income statement 7.1.1 Income statement tax charge For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Total current tax charge 359 263 592 Total deferred tax charge 110 48 404 Total tax charge 469 311 996 7.1.2 Allocation of profit/(loss) before tax and tax charge between equity holders and policyholders The profit before tax reflected in the condensed consolidated income statement for the six months ended 30 June 2026 of £304m (30 June 2025: £559m, year ended 31 December 2025: £1,310m) comprises the pre-tax result attributable to equity holders and an amount equal and opposite to the tax charge attributable to policyholders' returns. This is the formal measure of profit or loss before tax under IFRS but it is not the result attributable to equity holders. This is principally because the corporate taxes of the Group include those on the income of consolidated with-profits and unit-linked funds that, through adjustments to benefits, are borne by policyholders. These amounts are required to be included in the tax charge of the Company under IAS 12. Consequently, this measure of profit before all taxes is not representative of pre-tax profits attributable to equity holders. The tax charge attributable to policyholders' returns is removed from the Group’s total profit/(loss) before tax in arriving at the Group’s profit/(loss) before tax attributable to equity holders. As the net of tax profit attributable to policyholders is zero, the Group’s pre-tax profit attributable to policyholders is an amount equal and opposite to the tax charge attributable to policyholders included in the total tax charge. For the six months ended 30 June For the year ended 31 December 2026 2025 2025 Equity holders Policyholders Total Equity holders Policyholders Total Equity holders Policyholders Total £m £m £m £m £m £m £m £m £m (Loss)/profit before tax (213) 517 304 333 226 559 439 871 1,310 Tax credit/(charge) 48 (517) (469) (85) (226) (311) (125) (871) (996) (Loss)/profit for the period (165) — (165) 248 — 248 314 — 314 7.1.3 Equity holders' effective tax rate The equity holders' tax credit for the six months ended 30 June 2026 was £48m (30 June 2025: £85m tax charge, 31 December 2025: £125m tax charge) representing an effective tax rate of 22.5% (30 June 2025: 25.5%, 31 December 2025: 28.5%). The equity holders’ effective tax rate of 22.5% diverges from the UK statutory rate of 25.0% (30 June 2025: 25.0%, 31 December 2025: 25.0%) and any difference is primarily due to the detrimental impact arising from non-deductible expenses and difference in the taxation of life insurance business. 7.1.4 Factors that may impact the future tax rate The majority of the Group’s profits are generated in the UK. Taking into account recurring tax adjusting items, the underlying effective tax rate for equity holders’ portion of profits is expected to be marginally higher than the statutory rate in the UK of 25%. The Group has total unused tax losses carried forward, including both capital and other losses, on which no deferred tax is recognised of £553m (30 June 2025: £634m, 31 December 2025: £583m). The Group's unused tax losses primarily relate to UK capital losses of £545m (30 June 2025: £626m, 31 December 2025: £575m). No deferred tax asset is recognised on these losses and, should appropriate taxable profits arise in future periods, it will result in tax benefits thereby reducing the future effective tax rate in the relevant periods. The Group is subject to the global minimum top-up tax under Pillar Two legislation enacted in the UK and effective for the year ended 31 December 2024. The Group has assessed the top-up tax to be booked for the period ended 30 June 2026 as nil (30 June 2025: nil, 31 December 2025: £2m). A credit of £1m has been included in the tax credit/(charge) at 30 June 2026 (30 June 2025: credit of £1m, 31 December 2025: charge of £1m) to adjust the amount being provided for in relation to prior years. The Group has applied a temporary mandatory exclusion from deferred tax accounting for the impacts of top-up tax. The Group continues to monitor developments in Pillar Two legislation, guidance and administrative practice in relevant jurisdictions. The Group has implemented processes to comply with applicable Pillar Two reporting, filing and payment obligations and will continue to adapt these processes as requirements evolve. 7.2 Deferred tax 7.2.1 Deferred tax assets and liabilities Under IAS 12, deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability settled, based on tax rates (and laws) that have been enacted or are substantively enacted at the end of the reporting period. Deferred tax assets are recognised as recoverable to the extent that, on the basis of all available evidence, it is regarded as probable there will be suitable taxable profits from which the future reversal of the underlying temporary differences can be deducted or tax losses utilised. Deferred tax assets and liabilities are only offset when there is both a legal right to set-off and an intention to settle on a net basis. The table below shows the closing deferred tax assets and liabilities. The asset and liability balances are different from those disclosed on the condensed consolidated statement of financial position as the below amounts are presented before offsetting asset and liability balances where there is a legal right to set off and an intention to settle on a net basis. M&G plc Interim Financial Report 2026 35
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7 Tax (continued) For the six months ended 30 June 2026 For the year ended 31 December 2025 £m £m Unrealised gains/losses on investments (1,229) (1,029) Balance relating to insurance and investment contracts (157) (189) Other short-term timing differences 57 64 Deferred acquisition costs 9 11 Defined benefit pensions (30) (27) Capital allowances 14 15 Tax losses carried forward 562 503 Share-based payments 43 34 Net deferred tax liability (731) (618) Assets 1,000 945 Liabilities (1,731) (1,563) Net deferred tax liability (731) (618) The net deferred tax liability at 30 June 2026 of £731m has increased by £113m during the period from £618m at 31 December 2025. The increase is predominantly due to an increase in the unrealised gains/losses on investments partially offset by a decrease in liability on balances relating to insurance and investment contracts and an increase in the deferred tax asset on tax losses carried forward during the period. The losses carried forward of £562m (31 December 2025: £503m) relate primarily to PAC and M&G plc. A deferred tax asset has been recognised on the full excess losses, trade losses and shareholder losses and a proportion of the capital losses on the basis that the Group considers it is probable that sufficient future taxable profits and UK capital gains will be available against which these losses can be utilised. It is estimated the losses on which deferred tax assets have been recognised will be utilised in less than 14 years. The deferred tax asset on losses is measured at the tax rates that are expected to apply to the period when the asset is realised. On 26 November 2025, the UK Government announced that the rate of policyholder tax would increase from 20% to 22% effective from 6 April 2027. The rate change was substantively enacted on 18 March 2026 as part of Finance Act 2026 (FA 2026) which resulted in a net impact increasing the deferred tax liability by £57m. 7.2.2 Unrecognised deferred tax At the end of the reporting period, the Group has unused tax losses of £553m (30 June 2025: £634m, 31 December 2025: £583m) for which no deferred tax asset is being recognised. The Group’s unused tax losses primarily relate to capital losses in the UK of £545m (30 June 2025: £626m, 31 December 2025: £575m). No deferred tax asset is recognised on these losses as it is considered not probable that future taxable UK capital gains or other appropriate profits will be available against which they can be utilised. Under UK law, capital losses and trade losses can be carried forward indefinitely. 7.3 Current tax assets and liabilities One of the Group’s subsidiaries, The Prudential Assurance Company Limited (PAC), is the lead litigant in a combined group action against HM Revenue and Customs (HMRC) concerning the correct historical tax treatment applying to dividends received from overseas portfolio investments of its With-Profits Fund. In February 2018, the Supreme Court heard HMRC’s appeal against the earlier Court of Appeal decision in PAC’s favour. The decision of the Supreme Court, released in July 2018, upheld the main point of dispute in PAC’s favour but reversed the decisions of the lower courts on some practical points of how to apply that principle. The Supreme Court issued its order giving effect to its decision in October 2019, stating any remaining issues of computation be remitted back to the High Court. PAC and HMRC are working through the mechanics of implementing the Supreme Court decisions. To date, this work has led to a reduction in the estimate for policyholder tax credit recoverable, and the associated estimate of interest receivable. As at 30 June 2026, PAC has recognised a total policyholder tax credit of £114m (31 December 2025: £114m) in respect of its claim against HMRC. Of this amount, £40m (31 December 2025: £40m) has been paid by HMRC leaving a tax recoverable balance of £74m (31 December 2025: £74m) recorded as an amount of tax due from HMRC. PAC will be entitled to interest on the tax repaid. The settlement is now expected to be finalised during the second half of 2026 at which point PAC should receive full and final payment. M&G plc Interim Financial Report 2026 36
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8 Earnings per share Basic earnings per share (EPS) for the six months ended 30 June 2026 was (7.1)p (30 June 2025: 10.1p, 31 December 2025: 12.6p) and diluted EPS was (7.1)p (30 June 2025: 10.0p, 31 December 2025: 12.3p). Basic EPS is based on the weighted average ordinary shares outstanding after deducting treasury shares and shares held by the employee benefit trust. Diluted EPS is based on the potential future shares outstanding resulting from exercise of options under the various share-based payment schemes in addition to the weighted average ordinary shares outstanding. The following table shows details of basic and diluted EPS: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m (Loss)/profit attributable to equity holders of M&G plc (170) 243 302 For the six months ended 30 June For the year ended 31 December 2026 2025 2025 Millions Millions Millions Weighted average number of ordinary shares outstanding 2,399 2,398 2,404 Dilutive effect of share options and awards — 39 56 Weighted average number of diluted ordinary shares outstanding 2,399 2,437 2,460 For the six months ended 30 June For the year ended 31 December 2026 2025 2025 Pence per share Pence per share Pence per share Basic (loss)/earnings per share (7.1) 10.1 12.6 Diluted (loss)/earnings per share (7.1) 10.0 12.3 As the Group made a loss attributable to equity holders of the Company for the six months ended 30 June 2026, the diluted EPS is the same as the basic EPS as it is not permissible for the diluted EPS to be greater than the basic EPS. 9 Dividends For the six months ended 30 June For the year ended 31 December 2026 2025 2025 Pence per share £m Pence per share £m Pence per share £m Dividends relating to reporting period: First interim dividend - Ordinary 6.8 163 6.7 161 6.7 161 Second interim dividend - Ordinary — — — — 13.8 328 Total 6.8 163 6.7 161 20.5 489 Dividends paid in reporting period: Prior year's second interim dividend - Ordinary 13.8 328 13.5 321 13.5 321 First interim dividend - Ordinary — — — — 6.7 161 Total 13.8 328 13.5 321 20.2 482 Subsequent to 30 June 2026, the Board has declared a first interim dividend for 2026 of 6.8 pence per ordinary share, an estimated £163m in total. The dividend is expected to be paid on 16 October 2026 and will be recorded as an appropriation of retained earnings in the Parent Company’s financial statements at the time that it is paid. M&G plc Interim Financial Report 2026 37
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10 Defined benefit pension schemes The Group operates three defined benefit pension schemes, which historically have been funded by the Group. The largest defined benefit scheme as at 30 June 2026 is the Prudential Staff Pension Scheme (PSPS), which accounts for 83% (31 December 2025: 83%) of the present value of the defined benefit pension obligation. The Group also operates two smaller defined benefit pension schemes that were originally established by the M&G Group Limited (M&GGPS) and Scottish Amicable (SASPS) businesses. On 18 September 2023, M&GGPS Trustees executed a buy-in transaction with PAC covering all deferred and pensioner member liabilities. A premium of £329m was transferred to PAC as part of the transaction. The assets transferred to PAC as premium were recognised in the relevant line within financial assets in the consolidated statement of financial position. As a result of the buy-in the relevant plan assets transferred were replaced with a single line insurance policy reimbursement right asset which is eliminated on consolidation. This reimbursement right asset, although available to the scheme, does not constitute a plan asset under IAS 19. The value of this insurance policy at 30 June 2026 was £253m (31 December 2025: £262m). M&GGPS agreed to transfer the liability related to all active members to the PSPS scheme. Subsequent to the transfer transacted at the same time as the buy-in, a portion of the net economic pension surplus of PSPS is attributable to M&G FA Limited, a subsidiary of the Group, and is attributable to the shareholders. As at 30 June 2026 the net economic pension surplus attributed to the With-Profits Fund is 59% (31 December 2025: 59%) and to the Group's shareholders is 41% (31 December 2025: 41%). Under IAS 19: Employee Benefits and IFRIC 14: IAS 19 – The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction, the Group can only recognise a surplus to the extent that it is able to access the surplus either through an unconditional right of refund or through reduced future contributions relating to ongoing service of active members. The Group has no unconditional right of refund to any surplus in PSPS. Accordingly, PSPS’s net economic pension surplus is restricted up to the present value of the Group’s economic benefit, which is calculated as the difference between the estimated future cost of service for active members and the estimated future ongoing contributions. The level of the restriction is set out in the tables that follow. In contrast, the Group is able to access the surplus of SASPS and M&GGPS through an unconditional right of refund. Therefore, the surplus resulting from the schemes (if any) would be recognised in full. As at 30 June 2026 the SASPS scheme is in surplus and the M&GGPS scheme is in deficit based on the IAS 19 valuation. M&GGPS is in a net economic surplus position but in deficit on an IAS 19 basis as a result of the elimination of the reimbursement right asset recognised in respect of the buy-in of the scheme by PAC as explained above. The scheme also has investments in insurance policies issued by Prudential Pensions Limited (PPL), a subsidiary of the Group, through which it invests in certain pooled funds. Under IAS 19, non-transferable insurance policies issued by a related party do not qualify as plan assets and these are eliminated. The gross economic position of M&GGPS which includes the PPL policies and reimbursement right asset is reflected in the financial statements of M&G FA Limited. The SASPS net economic pension surplus is attributed 40% to the With-Profits Fund and 60% to the Group’s shareholders. Both the policyholder and shareholder allocation of SASPS is reflected in the financial statements of PAC. M&G plc Interim Financial Report 2026 38
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10 Defined benefit pension schemes (continued) The pension assets and liabilities for the defined benefit pension schemes are as follows: As at 30 June 2026 PSPS SASPS M&GGPS Total £m £m £m £m Fair value of plan assets 3,815 514 267 4,596 Present value of defined benefit obligation (3,515) (471) (253) (4,239) Effect of restriction on surplus (296) — — (296) Net economic pension surplusi 4 43 14 61 Non-qualifying insurance policies — — (12) (12) Elimination of reimbursement right asset on consolidation — — (253) (253) Net total pension surplus/(deficit) 4 43 (251) (204) As at 30 June 2026 PSPS SASPS M&GGPS Total £m £m £m £m Attributable to: Shareholder‑backed business 1 26 (251) (224) With-Profits Fund 3 17 — 20 Net total pension surplus/(deficit) 4 43 (251) (204) As at 31 December 2025 PSPS SASPS M&GGPS Total £m £m £m £m Fair value of plan assets 3,938 519 277 4,734 Present value of defined benefit obligation (3,595) (481) (262) (4,338) Effect of restriction on surplus (338) — — (338) Net economic pension surplusi 5 38 15 58 Non-qualifying insurance policies — — (14) (14) Elimination of reimbursement right asset on consolidation — — (262) (262) Net total pension surplus/(deficit) 5 38 (261) (218) As at 31 December 2025 PSPS SASPS M&GGPS Total £m £m £m £m Attributable to: Shareholder‑backed business 2 23 (261) (236) With‑Profits Fund 3 15 — 18 Net total pension surplus/(deficit) 5 38 (261) (218) i The economic basis reflects the position of the defined benefit schemes from the perspective of the pension schemes, adjusted for the effect of IFRIC 14 for the derecognition of PSPS’s unrecognisable surplus and before adjusting for any non-qualifying assets. M&G plc Interim Financial Report 2026 39
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11 Insurance liabilities 11.1 Insurance, investment with discretionary participation features and reinsurance contracts The breakdown of groups of insurance, investment with DPF and reinsurance contracts issued, and reinsurance contracts held, that are in an asset position and those in a liability position is set out in the table below: 2026 With-profitsi Unit-linked business Annuities and other long-term business Total As at 30 June £m £m £m £m Insurance contract liabilities Insurance contract liabilities 28,001 4,396 14,838 47,235 Investment contracts with DPF liabilities 103,591 — 242 103,833 131,592 4,396 15,080 151,068 Insurance contract assets Insurance contract assets — — 46 46 — — 46 46 Reinsurance contracts Reinsurance contract assets 18 4 979 1,001 Reinsurance contract liabilities 1 21 226 248 2025 With-profitsi Unit-linked business Annuities and other long-term business Total As at 31 December £m £m £m £m Insurance contract liabilities Insurance contract liabilities 28,209 4,257 14,653 47,119 Investment contracts with DPF liabilities 100,207 — 219 100,426 128,416 4,257 14,872 147,545 Insurance contract assets Insurance contract assets — — 49 49 — — 49 49 Reinsurance contracts Reinsurance contract assets 19 3 1,045 1,067 Reinsurance contract liabilities 1 22 237 260 i Includes the With-Profits Sub-Fund (WPSF) and the Defined Charge Participating Sub-Fund (DCPSF), including the non-profit business written within these funds. The IFRS 17 disclosures have been disaggregated based on the following lines of business: – With-profits business (including non-profit business in the With-Profits Fund) – Unit-linked business – Annuities and other long-term business (including BPA Plus) This reflects the level of granularity at which the assumptions are set and the insurance contract liabilities calculated. All lines of business mentioned above form part of the Life segment. 11.2 Determination of insurance, investment with DPF and reinsurance contract balances for different components of business Further information on the different types of insurance and investment contracts written in each line of business is presented in Note 2.4 in the notes to the Group's 2025 consolidated financial statements. In addition, during the year the Group has launched BPA Plus which is a with-profits BPA proposition. The financial and non-financial risks and related premiums on BPA Plus contracts are shared between the With-Profits Fund and the shareholder based on arrangements formalised through internal Memoranda of Understanding (MoUs). The underlying contract and MoUs are combined and treated as a single contract, reflecting that the cash flows arising from the MoUs affect the amounts payable to policyholders. The related balances are presented within Annuities and other long-term business. The longevity and investment risk on the contract are shared 80:20 between the With-Profits Fund and shareholder respectively, whereas, the maintenance expense risk is borne entirely by the shareholder. M&G plc Interim Financial Report 2026 40
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11 Insurance liabilities (continued) The contracts are disclosed according to management's view of the business. A description relating to the determination of the policyholder and reinsurance contract balances with the key assumptions for each component of business is set out in the notes below: 11.2.1 Discount rates Cash flows relating to insurance and reinsurance contracts issued and reinsurance contracts held are discounted using risk-free yield curves adjusted to reflect the liquidity characteristics of the contracts. The Group determines the adjustment for illiquidity using either a top-down approach (for annuity contracts) or a bottom-up approach (for all other contracts, including with-profits). For with-profits contracts, the illiquidity premium is determined at each reporting date by applying a weighting of 75% to the illiquidity premium for the reference portfolio of fixed interest assets. The illiquidity premium included in the discount rate as at 30 June 2026 was 33bps (31 December 2025: 37bps). The assumed investment returns are consistent with the discount rates applied to the cash flows. The volatility of investment returns is set with reference to implied volatility data on traded market instruments, where available, or on a best estimate basis where not. The unit-linked contracts are considered to be highly liquid as they can be surrendered at any time by the policyholder for a surrender value which is the value of the units less any surrender charge. Therefore the cash flows are discounted using rates derived from the risk-free yield curve without addition of an illiquidity premium. The assumed unit fund growth rates are consistent with the discount rates applied to the cash flows. For annuity contracts, the illiquidity premium is derived from the yield of a reference portfolio of assets adjusted to eliminate factors that are not relevant to the annuity contracts. The implied illiquidity premium at 30 June 2026 was 121bps (31 December 2025: 133bps) for shareholder-backed non-profit annuities, 123bps (31 December 2025: 146bps) for non-profit annuities in the With-Profits Fund and 123bps (31 December 2025: N/A) for BPA Plus annuities. There is no requirement to adjust the yield curve for any differences in the liquidity characteristics of the insurance contracts and the reference portfolio. The reference portfolios chosen for in-force annuities are the relevant assigned portfolios used to determine the Solvency II matching adjustment. For BPA Plus contracts, the reference portfolio represents the combination of the assets in the respective with-profits and shareholder matching adjustment portfolios, reflecting the sharing of risks mentioned above. These are considered to be suitable as reference portfolios for IFRS 17 reporting because their objective is to closely match the liability cash flows and there is strong governance around their management. The discount rates at the inception of each contract are based on the yields within a reference portfolio of assets which the Group expects to acquire to back the portfolio of new insurance contracts (the ‘target portfolio’). A weighted average of these discount rate curves is determined for the purpose of locking-in and calculating movements in the CSM relating to each group of contracts. The point of sale discount rate curves are weighted by the premiums in each group. On subsequent measurement of the fulfilment cash flows the yield at the valuation date on the reference portfolio is adjusted, where necessary, in respect of new contracts incepting in the period to allow for a period of transition from the actual asset holdings to the target portfolio. Typically, this period of transition can be up to 12 months but may be dependent on the volume of new business. For the Value Share transaction written in 2024 the period of transition can be up to 24 months. The largest adjustment made to reference portfolio yield is in relation to credit risk. IFRS 17 is not prescriptive as to how the adjustment for credit risk should be determined other than that it should reflect market risk premiums for credit risk. The credit risk allowance comprises an amount for long-term best estimate defaults and downgrades, a provision for credit risk premium and, where appropriate, an additional short-term overlay to reflect the prospective outlook for experience over the coming period, including uncertainty in the outlook. It incorporates allowances for expected and unexpected credit events, including internal and external views on the outlook for credit risk, and considers the relationship between credit risk and yield spreads. The allowance for credit risk within the discount rate for shareholder-backed non-profit annuities as at 30 June 2026 was 41bps (31 December 2025: 54bps). The allowance for credit risk within the discount rate for non-profit annuities in the With-Profits Fund as at 30 June 2026 was 43bps (31 December 2025: 62bps). The allowance for credit risk within the discount rate for BPA Plus annuities as at 30 June 2026 was 43bps (31 December 2025: N/A). The derivation of the discount rates for the Value Share reinsurance arrangement is as described above except that the reference portfolio of assets is the pool of assets that backs the Value Share BPA liabilities. The tables below show the discount rates on the reported basis used as at 30 June 2026 and 31 December 2025. Discount rates as at 30 June 2026 1 year 5 years 10 years 15 years 20 years 25 years 30 years With-profits contracts 4.32% 4.40% 4.71% 5.01% 5.19% 5.25% 5.23% Unit-linked contracts 3.99% 4.07% 4.38% 4.68% 4.86% 4.92% 4.90% Annuitiesi 5.20 - 5.22% 5.29 - 5.31% 5.59 - 5.61% 5.89 - 5.91% 6.07 - 6.09% 6.14 - 6.16% 6.11 - 6.13% Discount rates as at 31 December 2025 1 year 5 years 10 years 15 years 20 years 25 years 30 years With-profits contracts 3.91% 4.03% 4.41% 4.73% 4.90% 4.97% 4.96% Unit-linked contracts 3.54% 3.67% 4.04% 4.36% 4.54% 4.60% 4.59% Annuitiesi 4.87 - 5.00% 5.00 - 5.12% 5.38 - 5.50% 5.69 - 5.82% 5.87 - 5.99% 5.94 - 6.06% 5.92 - 6.05% i Range of discount rates for annuities business including non-profit annuities in the With-Profits Fund. M&G plc Interim Financial Report 2026 41
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11 Insurance liabilities (continued) The tables below show the credit risk allowances for annuity business as at 30 June 2026 and 31 December 2025. Credit risk allowances as at 30 June 2026 Non-profit annuities Shareholder-backed annuities Annuities in the With-Profits Fund BPA Plus annuities Credit risk allowance 41bps 43bps 43bps Credit risk allowance as proportion of spread over swaps 24.99% 25.34% 25.28% Net of reinsurance credit reserve (£m) 380 122 28 Credit risk allowances as at 31 December 2025 Non-profit annuities Shareholder-backed annuities Annuities in the With-Profits Fund BPA Plus annuities Credit risk allowance 54bps 62bps N/A Credit risk allowance as proportion of spread over swaps 28.17% 26.92% N/A Net of reinsurance credit reserve (£m) 511 150 N/A 11.2.2 Persistency and expense assumptions The table below summarises the range of lapse rate assumptions used as at 30 June 2026 and 31 December 2025. These exclude assumptions related to retirement rates for pension contracts, which may be as high as 100% at certain ages. The lapse rate assumptions remain the same as at 31 December 2025 and will be reviewed ahead of the 31 December 2026 valuation. Lapse rate assumptions As at 30 June 2026 As at 31 December 2025 With-profits contracts 0% - 30% 0% - 30% Unit-linked contracts 2.5% - 9.5% 2.5% - 9.5% Maintenance expense assumptions (per policy) The table below summarises the range of maintenance expense assumptions used as at 30 June 2026 and 31 December 2025, before allowance for future inflationary increases. The maintenance expense assumptions remain the same as at 31 December 2025 and will be reviewed ahead of the 31 December 2026 valuation. As at 30 June 2026 As at 31 December 2025 £ pa £ pa With-profits contracts 7 - 265 7 - 265 Unit-linked contractsi 64 - 186 64 - 186 Non-profit annuities - shareholder-backed 35 - 74 35 - 74 Non-profit annuities - in the With-Profits Fund 35 35 BPA Plus annuities 35-74 N/A i For Prudential International Assurance plc, maintenance expense assumptions are modelled as a percentage of assets under management and not included in the range for 30 June 2026. For 30 June 2026 and 31 December 2025, the range was 0.12% - 0.13% of assets under management. 11.2.3 Risk adjustment Risk adjustment for non-financial risk The risk adjustment for non-financial risk is determined as the increase in the discounted value of the future cash flows derived from non-financial assumptions set at the target confidence level instead of unbiased non-financial assumptions. The table below shows the confidence level used to determine the risk adjustment for with-profits contracts, unit-linked contracts, annuities and other long-term business: As at 30 June 2026 As at 31 December 2025 Confidence level (percentile of the Group’s one year risk distributions) 75th 75th Confidence level (percentile of the risk distributions over the remaining lifetime) 60th 60th 11.2.4 With-profits business The With-Profits Fund mainly contains with-profits contracts but also contains some non-profit business (annuities, unit-linked, and term assurances). The with-profits contracts are a combination of insurance contracts, investment contracts with DPF and investment contracts without DPF. The investment contracts without DPF are within the scope of IFRS 9 and are presented in Note 12. M&G plc Interim Financial Report 2026 42
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11 Insurance liabilities (continued) For the with-profits contracts the insurance contract liability is the sum of the liability for incurred claims and the liability for remaining coverage, which comprises: – the fair value of the underlying items for in-force contracts, ie the value of the asset shares and the expected future additions to asset shares, plus the present value of future costs less charges; – the allowance for ‘mutualisation’ on in-force business; – the risk adjustment for non-financial risk; – the CSM; and – the historical allowance for ‘mutualisation’ (based on the underlying items for the additional amounts expected to be paid to current or future policyholders). These items are described further below. Future costs less charges The future costs include a market-consistent valuation of the costs of guarantees, options and smoothing and this amount is determined using stochastic modelling techniques. The main assumptions used to value the future costs less charges are listed below: – Assumptions relating to persistency (see Note 11.2.2) and the take-up of options offered on certain with-profits contracts are set based on the results of the most recent experience analysis looking at the experience over recent years of the relevant business, and supplemented by expert judgement within the business. In line with legislative changes, including pension freedoms, the Group expects all policyholders of pension contracts to choose alternative post-vesting options; – Management actions under which the With-Profits Fund is managed in different scenarios; – Maintenance and, for some classes of business, termination expense assumptions are expressed as per policy amounts (see Note 11.2.2). They are set based on forecast expense levels, including an allowance for ongoing investment management expenses, and are allocated between entities and product groups in accordance with the Group’s internal cost allocation model. They reflect the costs incurred by the Group which may differ from the internal charges to companies within the Group; – Expense inflation assumptions are set consistent with the economic basis and based on the inflation swap spot curve; – The contract liabilities for with-profits business also require assumptions for mortality. These are set based on the results of recent experience analysis; and – Future investment return assumptions and discount rates are set at a risk-free yield curve plus an illiquidity premium (as set out in Note 11.2.1). Allowances for mutualisation The allowance for mutualisation on in-force business is the policyholders’ share, which is assumed to be 90% (consistent with the division of profits permitted by the Articles of Association), of the expected future surpluses arising from with-profits contracts, which are determined as: – the discounted value of the amounts that will be charged to policies; – less: the discounted value of future shareholder transfers, gross of tax; – less: the discounted value of other costs directly attributable to the group of insurance contracts; and – less: the amount of any additional tax attributable to the above items. The allowance for mutualisation on in-force business is included in the liabilities of the groups of insurance contracts. The historical allowance for mutualisation is the policyholders’ share of the surpluses that have arisen in the past, which are determined as the policyholders’ share of the fair value of the underlying items for the additional amounts expected to be paid to current or future policyholders less, if required, an allowance for any further tax balances that should be apportioned between policyholders and shareholders. The policyholders’ share is assessed on a prospective basis and is assumed to be 90%, consistent with the division of profits permitted by the Articles of Association. The fair value of the underlying items reflects, among other things, the fair value of the traditional non-profit contracts in the With-Profits Fund. The fair value is measured as the sum of the best estimate of the liability, determined using a discounted cash flow technique and assumptions used for Solvency II reporting; and the compensation a market participant would require for taking on the obligation, over and above the best estimate liability, determined using a cost of capital approach. The historical allowance for mutualisation is separate from the liabilities of the groups of insurance contracts (in accordance with IFRS 17 paragraph B71) and is presented within With-Profits for all business, including BPA Plus. The Group has chosen to present this as part of the liability for remaining coverage. With-profits options and guarantees Certain policies written in the Group’s With-Profits Fund give potentially valuable guarantees to policyholders, or options to change policy benefits which can be exercised at the policyholders’ discretion. M&G plc Interim Financial Report 2026 43
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11 Insurance liabilities (continued) With-profits options and guarantees Most with-profits contracts give a guaranteed minimum payment on a specified date or range of dates or on death if before that date or dates. For pensions products, the specified date is the policyholder’s chosen retirement date or a range of dates around that date. For endowment contracts, guarantees apply at the maturity date of the contract. For with-profits bonds it is often a specified anniversary of commencement, in some cases with further dates thereafter. The main types of options and guarantees offered for with-profits contracts are as follows: – for conventional with-profits contracts, including endowment assurance contracts and whole-of-life assurance contracts, payouts are guaranteed at the sum assured together with any declared regular bonus; – conventional with-profits deferred annuity contracts have a basic annuity per annum to which bonuses are added. At maturity, the cash claim value will reflect the current cost of providing the deferred annuity. Regular bonuses when added to with-profits contracts usually increase the guaranteed amount; – for unitised with-profits contracts and cash accumulation contracts the guaranteed payout is the initial investment (adjusted for any withdrawals, where appropriate), less charges, plus any regular bonuses declared. If benefits are taken at a date other than when the guarantee applies, a market value reduction may be applied to reflect the difference between the accumulated value of the units and the market value of the underlying assets; – for certain unitised with-profits contracts and cash accumulation contracts, policyholders have the option to defer their retirement date when they reach maturity, and the terminal bonus granted at that point is guaranteed; – for with-profits annuity contracts, there is a guaranteed minimum annuity payment below which benefit payments cannot fall over the lifetime of the policies; and – certain pensions products have guaranteed annuity options at retirement, where the policyholder has the option to take the benefit in the form of an annuity at a guaranteed conversion rate. CSM The Variable Fee Approach (VFA) is used to measure the CSM for with-profits business. For contracts that provide both insurance coverage and investment-related services the amount of the services provided in any given period is measured as the greater of the asset shares and the amounts payable on death during that period. 11.2.5 Unit-linked business Only unit-linked contracts that transfer significant insurance risk are within the scope of IFRS 17. For these contracts the insurance contract liability is the sum of the liability for incurred claims and the liability for remaining coverage, which comprises: – the fair value of the underlying items, ie the value of the unit funds, plus the present value of future costs less charges; – the risk adjustment for non-financial risk; and – the CSM. Future cash flows The present value of future costs less charges is determined using best estimate assumptions for the non-financial risks of mortality, on a basis that is appropriate for the policyholder profile, expenses and persistency (see Note 11.2.2). The assumed unit fund growth rates are consistent with the discount rates applied to the cash flows (see Note 11.2.1). Certain parts of the unit-linked business are reinsured externally by way of fund reinsurance. Where this is the case, the fair value of the underlying asset and liability is equal to the unit value obligation. CSM The VFA is used to measure the CSM for unit-linked business. The amount of the services provided in any given period is measured as the greater of the unit funds and the amounts payable on death during that period. 11.2.6 Annuities and other long-term business The majority of the policyholder liabilities in the 'Annuities and other long-term business' component relate to annuity contracts, for which some of the risk has been reinsured to external third parties. The annuity insurance contract liabilities are calculated as the sum of the liability for incurred claims and the liability for remaining coverage, which comprises: – the expected value of future annuity payments and expenses; – the risk adjustment for non-financial risk; and – the CSM. As noted in Note 11.2, BPA Plus contracts include both with-profits and shareholder-backed components but are treated as a single contract for IFRS 17 purposes and presented within Annuities and other long-term business. Future cash flows The key assumptions used to value the future cash flows for annuity contracts, both insurance contracts issued and reinsurance contracts held, are described below. Future cash flows for BPA Plus are determined consistently with non-profit annuities, in addition, they include an estimate of the present value of bonuses based on credit experience as it emerges and reflect the impact of mutualisation (see Note 11.2.4). M&G plc Interim Financial Report 2026 44
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11 Insurance liabilities (continued) Mortality Mortality assumptions for annuity business are set in light of recent population and internal experience, with an allowance for expected future mortality improvements. Given the long-term nature of annuity business, annuitant mortality remains a significant assumption in determining insurance liabilities. The assumptions used reference recent England & Wales population mortality data, consistent with the CMI mortality projections model with specific risk factors applied on a per policy basis to reflect the features of the Group’s portfolio. An increase in mortality rates was observed over 2020-21 due to the COVID-19 pandemic, however mortality rates have since recovered to pre-pandemic levels. There remains significant uncertainty following the pandemic and the longer-term implications for mortality rates among the annuitant population will continue to be monitored by the Group. For current mortality, the Group has a detailed longevity model calibrated to mortality experience data. The model has been reviewed and updates made to allow for distinct assumptions for second lives on joint life policies. The updates for second lives resulted in a slight weakening of the assumptions. The best estimate mortality improvements assumption is expressed in terms of the industry wide CMI model. At 31 December 2025, the assumption was updated to be expressed in terms of the CMI 2023 model (2024: CMI 2022 model). The future improvement assumptions give no weight to experience in 2020-2021; 10% weight on 2022 and 15% weight on 2023; reflecting more recent experience is likely to be partially reflective of future mortality. There is no change to the assumptions for 30 June 2026. The drivers which could impact future experience are continually monitored. The potential impact of climate change, primarily physical risks, has been considered when calibrating the longevity model. Based on available data, climate risk is not expected to materially influence the best estimate mortality assumptions across the assessed scenarios, and no separate adjustment has been applied to annuitant mortality in relation to climate risk. No changes have been made to best-estimate assumptions for current mortality or mortality improvements in the six months ended 30 June 2026. The mortality improvement assumptions used are summarised in the table below, with all other assumptions reflecting the core CMI projection: Period ended Model versioni, ii Long-term improvement rateiii Smoothing parameter (Sk)iv 30 June 2026 CMI 2023 For males: 1.60% pa For females: 1.60% pa For males: 7.25 For females: 7.25 31 December 2025 CMI 2023 For males: 1.60% pa For females: 1.60% pa For males: 7.25 For females: 7.25 i A parameter in the model to reflect socio-economic differences between the portfolio and population experience is also utilised. This adjusts initial mortality improvement rates, varying by age and gender. This is unchanged at all ages relative to 31 December 2025. ii Within the CMI 2023 model 10% weight is applied to 2022 data and 15% weight is applied to 2023 data as at 30 June 2026 and 31 December 2025. No weight is applied to 2020 and 2021 data at 30 June 2026 and 31 December 2025. iii The tapering of improvements to zero is set to occur between ages 90-110. iv The smoothing parameter controls the amount of smoothing by calendar year when determining the level of initial mortality improvements. The mortality assumptions for in-force vested annuities also cover annuities in deferment. Discount rates See Note 11.2.1. The same approach is also used to derive the discount rates applied to reinsurance cash flows. Expenses Maintenance expense assumptions are expressed as per policy amounts (see Note 11.2.2). They are set based on a combination of current year costs and forecast expenses, and are allocated between entities and product groups in accordance with the Group’s internal cost allocation model. They reflect the costs incurred by the Group which may differ from the internal charges to companies within the Group. A separate explicit allowance is made for ongoing investment management expenses. Expense inflation assumptions are set consistent with the economic basis and based on the inflation swap spot curve. Increases in costs that are expected to follow an inflation index are considered by the Group to relate to financial risk. Value Share reinsurance cash flows Payments made to or received from the reinsurer are dependent on the relationship between the value of the assets backing the BPA liabilities and the value of the liabilities determined in accordance with a specified basis. These cash flows are estimated by projecting the assets and liabilities and comparing their values on the calculation dates prescribed in the reinsurance contract. The assumed investment returns on the assets are the same as the discount rates used for the Value Share reinsurance arrangement (see Note 11.2.1). CSM The General Measurement Model (GMM) is used to measure the CSM for annuities and other long-term business, which includes BPA Plus annuities. For annuities in payment the amount of the services provided in any given period is the annualised amount of income. M&G plc Interim Financial Report 2026 45
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11 Insurance liabilities (continued) 11.3 Movements in insurance, investment with DPF and reinsurance contract balances The following reconciliations show how the net carrying amounts of insurance, investment with DPF and reinsurance contracts in each group of insurance contracts issued, and reinsurance contracts held, changed during the period as a result of cash flows and amounts recognised in the consolidated income statement. The tables presented analyse changes in the estimates of the present value of future cash flows, the risk adjustment for non-financial risk and the CSM. 11.3.1 Insurance contracts Analysis by measurement component Insurance contracts For the six months ended 30 June 2026 Contractual Service Margin Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective transition approach Contracts under the fair value transition approach Other contracts Total CSM Total £m £m £m £m £m £m £m Opening insurance contract liabilities 139,900 565 1,995 4,311 774 7,080 147,545 Opening insurance contract assets (111) 5 — 14 43 57 (49) Net opening balance 139,789 570 1,995 4,325 817 7,137 147,496 Changes that relate to current services CSM recognised in profit or loss for the services provided — — (125) (251) (52) (428) (428) Change in the risk adjustment for non-financial risk for the risk expired — (28) — — — — (28) Revenue recognised for incurred policyholder tax (362) — — — — — (362) Experience adjustments 13 — — — — — 13 (349) (28) (125) (251) (52) (428) (805) Changes that relate to future services Contracts initially recognised in the period (93) 11 — — 85 85 3 Changes in estimates reflected in the CSM (496) (7) 211 177 115 503 — Changes in estimates that result in onerous contract losses or reversal of those losses 11 — — — — — 11 (578) 4 211 177 200 588 14 Changes that relate to past services Adjustments to liabilities for incurred claims 2 — — — — — 2 2 — — — — — 2 Insurance service result (925) (24) 86 (74) 148 160 (789) Finance expense from insurance contracts issued 7,221 11 59 67 27 153 7,385 Total changes in the income statement 6,296 (13) 145 (7) 175 313 6,596 Cash flows Premiums received 4,124 — — — — — 4,124 Incurred claims paid and other insurance service expenses paid including investment component (7,075) — — — — — (7,075) Insurance acquisition cash flows (119) — — — — — (119) Total cash flows (3,070) — — — — — (3,070) Net closing balance 143,015 557 2,140 4,318 992 7,450 151,022 Closing insurance contract liabilities 143,124 552 2,140 4,304 948 7,392 151,068 Closing insurance contract assets (109) 5 — 14 44 58 (46) Net closing balance 143,015 557 2,140 4,318 992 7,450 151,022 M&G plc Interim Financial Report 2026 46
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11 Insurance liabilities (continued) Analysis by measurement component Insurance contracts For the year ended 31 December 2025 Contractual Service Margin Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective transition approach Contracts under the fair value transition approach Other contracts Total CSM Total £m £m £m £m £m £m £m Opening insurance contract liabilities 134,216 613 1,908 3,943 584 6,435 141,264 Opening insurance contract assets (94) 4 — 14 37 51 (39) Net opening balance 134,122 617 1,908 3,957 621 6,486 141,225 Changes that relate to current services CSM recognised in profit or loss for the services provided — — (242) (503) (85) (830) (830) Change in the risk adjustment for non-financial risk for the risk expired — (58) — — — — (58) Revenue recognised for incurred policyholder tax (621) — — — — — (621) Experience adjustments (16) — — — — — (16) (637) (58) (242) (503) (85) (830) (1,525) Changes that relate to future services Contracts initially recognised in the period (224) 50 — — 174 174 — Changes in estimates reflected in the CSM (867) (145) 221 734 57 1,012 — Changes in estimates that result in onerous contract losses or reversal of those losses 32 (1) — — — — 31 (1,059) (96) 221 734 231 1,186 31 Changes that relate to past services Adjustments to liabilities for incurred claims 4 — — — — — 4 4 — — — — — 4 Insurance service result (1,692) (154) (21) 231 146 356 (1,490) Finance expense from insurance contracts issued 13,498 107 108 137 50 295 13,900 Total changes in the income statement 11,806 (47) 87 368 196 651 12,410 Cash flows Premiums received 8,321 — — — — — 8,321 Incurred claims paid and other insurance service expenses paid including investment component (14,255) — — — — — (14,255) Insurance acquisition cash flows (205) — — — — — (205) Total cash flows (6,139) — — — — — (6,139) Net closing balance 139,789 570 1,995 4,325 817 7,137 147,496 Closing insurance contract liabilities 139,900 565 1,995 4,311 774 7,080 147,545 Closing insurance contract assets (111) 5 — 14 43 57 (49) Net closing balance 139,789 570 1,995 4,325 817 7,137 147,496 M&G plc Interim Financial Report 2026 47
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11 Insurance liabilities (continued) 11.3.2 Reinsurance contracts Analysis by measurement component Reinsurance contracts For the six months ended 30 June 2026 Contractual Service Margin Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective transition approach Contracts under the fair value transition approach Other contracts Total CSM Total £m £m £m £m £m £m £m Opening reinsurance contract liabilities 673 (100) — (298) (15) (313) 260 Opening reinsurance contract assets (802) (30) (4) (17) (214) (235) (1,067) Net opening balance (129) (130) (4) (315) (229) (548) (807) Changes that relate to current services CSM recognised in profit or loss for the services received — — — 15 3 18 18 Change in the risk adjustment for non-financial risk for the risk expired — 4 — — — — 4 Experience adjustments 6 — — — — — 6 6 4 — 15 3 18 28 Changes that relate to future services Contracts initially recognised in the period 1 — — — (1) (1) — Changes in estimates reflected in the CSM (38) — — 5 33 38 — Changes in the fulfilment cash flows that do not adjust the CSM for the group of underlying contracts (1) — — — — — (1) (38) — — 5 32 37 (1) Changes that relate to past services Asset for incurred claims (2) — — — — — (2) (2) — — — — — (2) Insurance service result (34) 4 — 20 35 55 25 Net finance income from reinsurance contracts 30 (3) — (3) (2) (5) 22 Total changes in the income statement (4) 1 — 17 33 50 47 Cash flows Premiums and similar expenses paid (237) — — — — — (237) Amounts recovered 244 — — — — — 244 Total cash flows 7 — — — — — 7 Net closing balance (126) (129) (4) (298) (196) (498) (753) Closing reinsurance contract liabilities 636 (93) — (278) (17) (295) 248 Closing reinsurance contract assets (762) (36) (4) (20) (179) (203) (1,001) Net closing balance (126) (129) (4) (298) (196) (498) (753) M&G plc Interim Financial Report 2026 48
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11 Insurance liabilities (continued) Analysis by measurement component Reinsurance contracts For the year ended 31 December 2025 Contractual Service Margin Estimates of present value of future cash flows Risk adjustment for non- financial risk Contracts under modified retrospective transition approach Contracts under the fair value transition approach Other contracts Total CSM Total £m £m £m £m £m £m £m Opening reinsurance contract liabilities 621 (94) — (232) (15) (247) 280 Opening reinsurance contract assets (793) (44) (5) (14) (187) (206) (1,043) Net opening balance (172) (138) (5) (246) (202) (453) (763) Changes that relate to current services CSM recognised in profit or loss for the services received — — 1 30 9 40 40 Change in the risk adjustment for non-financial risk for the risk expired — 11 — — — — 11 Experience adjustments 2 — — — — — 2 2 11 1 30 9 40 53 Changes that relate to future services Contracts initially recognised in the period 14 (18) — — 4 4 — Changes in estimates reflected in the CSM 95 32 — (92) (35) (127) — Changes in the fulfilment cash flows that do not adjust the CSM for the group of underlying contracts (24) — — — — — (24) 85 14 — (92) (31) (123) (24) Changes that relate to past services Asset for incurred claims (5) — — — — — (5) (5) — — — — — (5) Insurance service result 82 25 1 (62) (22) (83) 24 Net finance income from reinsurance contracts (25) (17) — (7) (5) (12) (54) Total changes in the income statement 57 8 1 (69) (27) (95) (30) Cash flows Premiums and similar expenses paid (494) — — — — — (494) Amounts recovered 480 — — — — — 480 Total cash flows (14) — — — — — (14) Net closing balance (129) (130) (4) (315) (229) (548) (807) Closing reinsurance contract liabilities 673 (100) — (298) (15) (313) 260 Closing reinsurance contract assets (802) (30) (4) (17) (214) (235) (1,067) Net closing balance (129) (130) (4) (315) (229) (548) (807) M&G plc Interim Financial Report 2026 49
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11 Insurance liabilities (continued) 11.4 Expected recognition of the Contractual Service Margin As at 30 June 2026 As at 31 December 2025 Insurance contracts issued Reinsurance contracts held Insurance contracts issued Reinsurance contracts held £m £m £m £m Number of years until expected to be recognised: 0 to 1 year 743 (27) 734 (33) 1 to 2 years 691 (26) 661 (31) 2 to 3 years 642 (27) 603 (31) 3 to 4 years 583 (27) 548 (30) 4 to 5 years 526 (26) 496 (28) 5 to 10 years 1,922 (115) 1,837 (124) 10 to 15 years 1,085 (86) 1,051 (93) 15 to 20 years 583 (59) 569 (65) 20 to 25 years 313 (39) 302 (43) Over 25 years 362 (66) 336 (70) Total 7,450 (498) 7,137 (548) The insurance contracts issued represents the run off of the net of insurance assets and insurance liabilities CSM. The amounts presented in the table represent the current discounted value of the CSM amortisation expected to be recognised in the insurance service result in future periods. The actual CSM amortisation in future periods will differ from that presented due to the impacts of future new business, recalibrations of the CSM, changes in estimates reflected in the CSM and changes in the future coverage units. The reinsurance contracts held represents the run off of the net of reinsurance asset and reinsurance liabilities CSM. 12 Investment contract liabilities without discretionary participation features (DPF) Investment contract liabilities without DPF comprise unit-linked contracts that contain little or no insurance risk and certain contracts invested in PruFund with a low level of discretion (detailed below). For the former, the assets and liabilities arising under the contracts are distinguished between those that relate to the financial instrument liability, and the deferred acquisition costs and deferred income that relate to the component of the contract that relates to investment management. Deferred acquisition costs and deferred income are recognised in line with the level of service provision. Certain contracts invested in PruFund which are sold via wholesale distribution agreements with certain European financial institutions and that are not considered to have DPF are also included in investment contract liabilities without DPF. Accordingly, the contracts are measured at FVTPL under IFRS 9. The fair value is measured as the higher of the surrender value and the sum of the best estimate of the liability and the compensation a market participant would require for taking on the obligation. The carrying value of these liabilities as at 30 June 2026 is £485m (31 December 2025: £416m). The table below presents the analysis of change in investment contract liabilities without DPF: 30 June 2026 31 December 2025 £m £m At start of period 11,507 12,144 Premiums 286 576 Surrenders (385) (2,153) Maturities/deaths (83) (98) Total net flows (182) (1,675) Switches 12 28 Investment-related items and other movementsi 554 953 Foreign exchange differences 12 57 At end of period 11,903 11,507 i Investment-related items and other movements, including foreign exchange differences, differ from the income statement line item Net change in investment contract liabilities without DPF due to presentational differences. Certain parts of the unit-linked business are reinsured externally by way of fund reinsurance. Where this is the case, the fair value of the underlying asset and liability is equal to the unit value obligation. M&G plc Interim Financial Report 2026 50
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13 Subordinated liabilities and other borrowings As at 30 June 2026 As at 31 December 2025 £m £m Subordinated liabilities 3,109 3,118 Operational borrowings 31 45 Borrowings attributable to the With-Profits Fund 2,934 3,356 Total subordinated liabilities and other borrowings 6,074 6,519 13.1 Subordinated liabilities The Group’s subordinated liabilities consist of subordinated notes which were transferred from Prudential plc on 18 October 2019 and were recorded at fair value on initial recognition. The transfer of the subordinated liabilities was achieved by substituting the Company in place of Prudential plc as issuer of the debt, as permitted under the terms and conditions of each applicable instrument. All costs related to the transaction were borne by Prudential plc. As at 30 June 2026 As at 31 December 2025 Principal amount Carrying value Principal amount Carrying value £m £m 5.625% Sterling fixed rate due 20 October 2051 £750m 808 £750m 812 6.25% Sterling fixed rate due 20 October 2068 £500m 596 £500m 597 6.50% US Dollar fixed rate due 20 October 2048 $500m 397 $500m 396 6.34% Sterling fixed rate due 19 December 2063 £700m 829 £700m 832 5.56% Sterling fixed rate due 20 July 2055 £439m 479 £439m 481 Total subordinated liabilities 3,109 3,118 Subordinated notes issued by the Company rank below its senior obligations and ahead of any preference shares and ordinary share capital. A description of the key features of each of the Group’s subordinated notes as at 30 June 2026 is as follows: 5.625% Sterling fixed rate 6.25% Sterling fixed rate 6.50% US Dollar fixed rate 6.34% Sterling fixed rate 5.56% Sterling fixed rate Principal amount £750m £500m $500m £700m £439m Issue date i 3 October 2018 3 October 2018 3 October 2018 16 December 2013 (amended 10 June 2019) 9 June 2015 (amended 10 June 2019) Maturity date 20 October 2051 20 October 2068 20 October 2048 19 December 2063 20 July 2055 Callable at par at the option of the Company from 20 October 2031 (and each semi- annual interest payment date thereafter) 20 October 2048 (and each semi-annual interest payment date thereafter) 20 October 2028 (and each semi- annual interest payment date thereafter) 19 December 2043 (and each semi-annual interest payment date thereafter) 20 July 2035 (and each semi- annual interest payment date thereafter) Solvency II own funds treatment Tier 2 Tier 2 Tier 2 Tier 2 Tier 2 i The subordinated notes were originally issued by Prudential plc rather than by the Company. As at 30 June 2026, the principal amount of all subordinated liabilities has a contractual maturity of more than 12 months and accrued interest of £32m (31 December 2025: £33m) is expected to be settled within 12 months. M&G plc Interim Financial Report 2026 51
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13 Subordinated liabilities and other borrowings (continued) 13.1.1 Movement in subordinated liabilities The following table reconciles the movement in subordinated liabilities in the period: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m At start of period 3,118 3,176 3,176 Amortisation (14) (14) (28) Foreign exchange movements 5 (37) (30) At end of period 3,109 3,125 3,118 The amortisation of premium on the subordinated notes based on an expected interest rate and the foreign exchange movement on the translation of the subordinated liabilities denominated in US dollar are both non-cash items. 14 Fair value methodology 14.1 Determination of fair value hierarchy The fair values of assets and liabilities for which fair valuation is required under IFRS are determined by the use of current market bid prices for exchange-quoted investments, by using quotations from independent third parties such as brokers and pricing services, or by using appropriate valuation techniques. Fair value is the amount for which an asset could be exchanged or a liability settled in an arm’s length transaction. To provide further information on the approach used to determine and measure the fair value of certain assets and liabilities, the following fair value hierarchy categorisation has been used. This hierarchy is based on the inputs to the fair value measurement and reflects the lowest level input that is significant to that measurement. Level 1 - quoted prices (unadjusted) in active markets for identical assets and liabilities Level 1 principally includes exchange-listed equities, mutual funds with quoted prices, exchange-traded derivatives such as futures and options, and national government bonds, unless there is evidence that trading in a given instrument is so infrequent that the market could not be considered active. It also includes other financial instruments where there is clear evidence that the year-end valuation is based on a traded price in an active market. Level 2 - inputs other than quoted prices included within level 1 that are observable either directly (ie as prices) or indirectly (ie derived from prices) Level 2 principally includes corporate bonds and other national and non-national government debt securities which are valued using observable inputs, together with over-the-counter derivatives such as forward exchange contracts and non-quoted investment funds valued with observable inputs. It also includes investment contract liabilities without DPF valued with observable inputs. Level 3 - significant inputs for the asset or liability are not based on observable market data (unobservable inputs) Level 3 principally includes investments in private equity funds, directly held investment properties and investments in property funds which are exposed to bespoke properties or risks and investments which are internally valued or subject to a significant number of unobservable assumptions. It also includes debt securities and loans, which are rarely traded or traded only in privately negotiated transactions and hence where it is difficult to assert that their valuations have been based on observable market data. 14.2 Valuation approach for level 2 assets and liabilities A significant proportion of the Group’s level 2 assets are corporate bonds, structured securities and other national and non-national government debt securities. These assets, in line with market practice, are generally valued using independent pricing services or quotes from third party brokers. These valuations are subject to a number of monitoring controls, such as monthly price variances, stale price reviews and variance analysis on prices achieved on subsequent trades. Pricing services, where available, are used to obtain third party broker quotes. When prices are not available from pricing services, quotes are sourced directly from brokers. The Group seeks to obtain a number of quotes from different brokers so as to obtain the most comprehensive information available on their executability. Where quotes are sourced directly from brokers, the price used in the valuation is normally selected from one of the quotes based on a number of factors, including the timeliness and regularity of the quotes and the accuracy of the quotes considering the spreads provided. The selected quote is the one which best represents an executable quote for the security at the measurement date. M&G plc Interim Financial Report 2026 52
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14 Fair value methodology (continued) 14.3 Level 3 assets and liabilities 14.3.1 Valuation approach for level 3 Investments valued using valuation techniques include financial investments which by nature do not have an externally quoted price based on regular trades, and financial investments for which markets are no longer active as a result of market conditions eg market illiquidity. The valuation techniques used include comparison to recent arm’s length transactions, reference to other instruments that are substantially the same, discounted cash flow analysis, option-adjusted spread models and, if applicable, enterprise valuation. These techniques may include a number of assumptions relating to variables such as credit risk and interest rates. Changes in assumptions relating to these variables could positively or negatively impact the reported fair value of these instruments. When determining the inputs into the valuation techniques used, priority is given to publicly available prices from independent sources when available, but overall the source of pricing is chosen with the objective of arriving at a fair value measurement that reflects the price at which an orderly transaction would take place between market participants on the measurement date. Where certain debt securities are valued using broker quotes, adjustments may be required in limited circumstances. This is generally where it is determined that the third-party valuations obtained do not reflect fair value (eg either because the value is stale and/or the values are extremely diverse in range). These are usually securities which are distressed or that could be subject to a debt restructure, or where reliable market prices are no longer available due to an inactive market or market dislocation. In these instances, prices are derived using internal valuation techniques with the objective of arriving at a fair value measurement that reflects the price at which an orderly transaction would take place between market participants on the measurement date. The techniques used require a number of assumptions relating to variables such as credit risk and interest rates. Examples of such variables include credit spreads taken from appropriate public comparables. The input assumptions are determined based on the best available information at the measurement dates. Securities valued in such manner are classified as level 3 where these significant inputs are not based on observable market data. Certain debt securities and commercial loans were valued based on the credit quality of the underlying borrower and allocating an internal credit rating which is unobservable. These debt securities are priced by taking the credit spreads on comparable quoted public debt securities and applying these to the equivalent debt securities, factoring in a specified illiquidity premium. The selection of comparable quoted public debt securities used to determine the credit spread takes into account the internal credit rating, maturity, sector and currency of the debt security. The fair value estimates are made at a specific point in time, based upon any available market information and judgements about the financial instruments, including estimates of the timing and amount of expected future cash flows and the credit standing of counterparties. Such estimates do not reflect any premium or discount that could result from offering for sale at one time a significant volume of a particular financial instrument, nor do they consider the tax impact of the realisation of unrealised gains or losses from selling the financial instrument being fair valued. In some cases, the disclosed value cannot be realised in immediate settlement of the financial instrument. In accordance with the Group Risk Framework, the estimated fair value of derivative financial instruments valued internally using standard market practices are subject to assessment against external counterparties’ valuations. The fair value of certain funds classified as level 3 is based on the Group's share of the latest available Net Asset Value adjusted for any subsequent cash movements in accordance with International Private Equity and Venture Capital Valuation guidelines. The Group’s investment properties are valued by professionally qualified external valuers, in accordance with Royal Institution of Chartered Surveyors (RICS) valuation standards, considering relevant guidance on sustainability and ESG factors. Valuations are market-based and predominantly use an income capitalisation approach, with yields and rental values informed by comparable transactions. ESG and climate-related factors are incorporated where they are observable in current market evidence. In practice, this means that any impact is reflected indirectly, for example, where more energy efficient or compliant assets achieve stronger rents, lower vacancy risk or tighter yields, and less efficient buildings attract pricing discounts due to higher anticipated upgrade costs or regulatory risk. M&G plc Interim Financial Report 2026 53
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14 Fair value methodology (continued) 14.3.2 Governance of level 3 The Group’s valuation policies, procedures and analyses for instruments categorised as level 3 are overseen by management committees as part of the Group’s wider financial reporting governance processes. The procedures undertaken include approval of valuation methodologies, verification processes, and resolution of significant or complex valuation issues. In undertaking these activities, the Group makes use of the extensive expertise of its asset management function. In addition, the Group has minimum standards for independent price verification to ensure valuation accuracy is regularly independently verified. 14.4 Fair value hierarchy for assets measured at fair value in the condensed consolidated statement of financial position The tables below present the Group's assets measured at fair value by level of the fair value hierarchy for each component of business: As at 30 June 2026 Level 1 Level 2 Level 3 Total £m £m £m £m With-profits: Investment property — — 13,397 13,397 Equity securities and pooled investment funds 45,491 988 16,115 62,594 Loans — 2,127 1,591 3,718 Debt securities 28,581 16,553 4,037 49,171 Derivative assets 115 454 — 569 Total with-profits 74,187 20,122 35,140 129,449 Unit-linked: Investment property — — 188 188 Equity securities and pooled investment funds 11,805 422 72 12,299 Debt securities 2,318 1,111 13 3,442 Derivative assets 2 7 — 9 Total unit-linked 14,125 1,540 273 15,938 Annuities and other long-term business: Investment property — — 564 564 Equity securities and pooled investment funds 188 78 2 268 Loans — — 268 268 Debt securities 4,724 4,381 4,100 13,205 Derivative assets — 184 24 208 Total annuities and other long-term business 4,912 4,643 4,958 14,513 Other: Equity securities and pooled investment funds 134 — 66 200 Loans — — 2 2 Debt securities 591 145 — 736 Derivative assets — 131 — 131 Total other 725 276 68 1,069 Group: Investment property — — 14,149 14,149 Equity securities and pooled investment funds 57,618 1,488 16,255 75,361 Loans — 2,127 1,861 3,988 Debt securities 36,214 22,190 8,150 66,554 Derivative assets 117 776 24 917 Total assets at fair value 93,949 26,581 40,439 160,969 M&G plc Interim Financial Report 2026 54
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14 Fair value methodology (continued) As at 31 December 2025 Level 1 Level 2 Level 3 Total £m £m £m £m With-profits: Investment property — — 13,434 13,434 Equity securities and pooled investment funds 42,439 916 15,057 58,412 Loans — 2,254 1,484 3,738 Debt securities 25,765 19,175 4,314 49,254 Derivative assets 38 894 — 932 Total with-profits 68,242 23,239 34,289 125,770 Unit-linked: Investment property — — 159 159 Equity securities and pooled investment funds 11,342 456 70 11,868 Debt securities 1,791 1,674 8 3,473 Derivative assets — 7 — 7 Total unit-linked 13,133 2,137 237 15,507 Annuities and other long-term business: Investment property — — 650 650 Equity securities and pooled investment funds 192 80 2 274 Loans — — 273 273 Debt securities 4,302 5,036 4,037 13,375 Derivative assets — 170 25 195 Total annuities and other long-term business 4,494 5,286 4,987 14,767 Other: Equity securities and pooled investment funds 127 — 68 195 Debt securities 642 164 — 806 Derivative assets — 124 — 124 Total other 769 288 68 1,125 Group: Investment property — — 14,243 14,243 Equity securities and pooled investment funds 54,100 1,452 15,197 70,749 Loans — 2,254 1,757 4,011 Debt securities 32,500 26,049 8,359 66,908 Derivative assets 38 1,195 25 1,258 Total assets at fair value 86,638 30,950 39,581 157,169 M&G plc Interim Financial Report 2026 55
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14 Fair value methodology (continued) 14.5 Fair value hierarchy for liabilities measured at fair value in the condensed consolidated statement of financial position The tables below present the Group's liabilities measured at fair value by level of the fair value hierarchy: As at 30 June 2026 Level 1 Level 2 Level 3 Total £m £m £m £m Investment contract liabilities without DPF — 11,903 — 11,903 Third party interest in consolidated funds 4,841 234 5,326 10,401 Derivative liabilities 30 2,527 11 2,568 Accruals, deferred income and other liabilities — 271 — 271 Total liabilities at fair value 4,871 14,935 5,337 25,143 As at 31 December 2025 Level 1 Level 2 Level 3 Total £m £m £m £m Investment contract liabilities without DPF — 11,507 — 11,507 Third party interest in consolidated funds 4,499 223 5,624 10,346 Derivative liabilities 52 2,410 9 2,471 Accruals, deferred income and other liabilities — — 218 218 Total liabilities at fair value 4,551 14,140 5,851 24,542 14.6 Transfers between levels The Group’s policy is to recognise transfers into and transfers out of levels as at the end of each half-year reporting period, except for material transfers, which are recognised as of the date of the event or change in circumstances that caused the transfer. Transfers are deemed to have occurred when there is a material change in the observed valuation inputs or a change in the level of trading activities of the securities. For the six months ended 30 June 2026 Transfers between levels Equity securities and pooled investments Loans Debt securities Total £m £m £m £m From level 1 to level 2i, ii — — 1,658 1,658 From level 1 to level 3i 12 — 2 14 From level 2 to level 1i, ii — — 5,005 5,005 From level 2 to level 3i — — 31 31 From level 3 to level 1 27 — — 27 From level 3 to level 2i — — 37 37 For the year ended 31 December 2025 Transfers between levels Equity securities and pooled investments Loans Debt securities Total £m £m £m £m From level 1 to level 2i, ii — — 2,397 2,397 From level 2 to level 1i, ii 1,295 — 5,329 6,624 From level 2 to level 3i 137 2 26 165 From level 3 to level 1 106 — — 106 From level 3 to level 2i — 49 225 274 i The transfers in debt securities are in line with the Group’s levelling policy during the six months ended 30 June 2026 and year ended 31 December 2025. ii The transfers in debt securities from level 2 to 1 and level 1 to 2 are primarily driven by movements in liquidity in the bond markets towards the end of the financial period. During the six months ended 30 June 2026, a liability of £218m was transferred from level 3 to level 2 as it is now valued using an observable input. M&G plc Interim Financial Report 2026 56
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14 Fair value methodology (continued) 14.7 Reconciliation of movements in level 3 assets and liabilities The movements during the period of level 3 assets and liabilities held at fair value (excluding assets and liabilities held for sale) are analysed in the tables below: For the six months ended 30 June 2026 At 1 January Total gains/ (losses) recorded in income statement Foreign exchange Purchases/ other Sales/ other Transfer to held for sale Settled Issued Transfer into level 3 Transfer out of level 3 At 30 June £m £m £m £m £m £m £m £m £m £m £m Level 3 assets: Investment property 14,243 (27) 20 344 (106) (325) — — — — 14,149 Equity securities and pooled investment funds 15,197 176 147 1,280 (524) — (6) — 12 (27) 16,255 Loans 1,757 (9) — 313 (200) — — — — — 1,861 Debt securities 8,359 (201) 9 574 (587) — — — 33 (37) 8,150 Derivative assets 25 — — — — — (1) — — — 24 Total level 3 assets 39,581 (61) 176 2,511 (1,417) (325) (7) — 45 (64) 40,439 Level 3 liabilities: Third party interest in consolidated funds 5,624 (92) 43 2 (220) — (237) 206 — — 5,326 Derivative liabilities 9 1 1 — — — — — — — 11 Other financial liabilities 218 — — — — — — — — (218) — Total level 3 liabilities 5,851 (91) 44 2 (220) — (237) 206 — (218) 5,337 For the year ended 31 December 2025 At 1 January Total gains/ (losses) recorded in income statement Foreign exchange Purchases/ other Sales/ other Transfer to held for sale Settled Issued Transfer into level 3 Transfer out of level 3 At 31 December £m £m £m £m £m £m £m £m £m £m £m Level 3 assets: Investment property 14,385 280 (119) 893 (1,015) (181) — — — — 14,243 Equity securities and pooled investment funds 16,470 204 (588) 1,968 (2,773) (115) — — 137 (106) 15,197 Loans 2,763 18 (13) 468 (502) (930) — — 2 (49) 1,757 Debt securities 8,320 (162) (42) 1,234 (671) (121) — — 26 (225) 8,359 Derivative assets 26 2 — — — — (3) — — — 25 Total level 3 assets 41,964 342 (762) 4,563 (4,961) (1,347) (3) — 165 (380) 39,581 Level 3 liabilities: Third party interest in consolidated funds 5,013 (305) (197) — 23 — (295) 1,373 12 — 5,624 Derivative liabilities 12 (3) — — — — — — — — 9 Other financial liabilities 221 9 — — — — (12) — — — 218 Total level 3 liabilities 5,246 (299) (197) — 23 — (307) 1,373 12 — 5,851 M&G plc Interim Financial Report 2026 57
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14 Fair value methodology (continued) 14.8 Sensitivity of the fair value of level 3 instruments to changes in significant inputs 14.8.1 Level 3 asset inputs Where possible, the Group assesses the sensitivity of the fair value of level 3 assets to reasonably possible changes in the most significant unobservable inputs. The most significant unobservable inputs in determining the fair value of level 3 assets are presented within the tables below: Real estate: Estimated rental value rangei Equivalent yield range Property type Geographical location 30 June 2026 31 December 2025 30 June 2026 31 December 2025 Investment property Industrial UK £4 to £32 £4 to £32 4.77% to 9.83% 4.61% to 9.83% Asia/Pacific $71 to $305 $77 to $302 3.08% to 7.50% 3.08% to 7.50% Office UK £6 to £121 £6 to £102 4.52% to 13.50% 4.00% to 11.32% Asia/Pacific $436 to $1,304 $431 to $1,228 2.89% to 7.13% 2.89% to 7.13% North America $47 $46 8.02% 8.00% Residential UK £26 to £88 £20 to £96 4.45% to 5.80% 4.25% to 6.35% Europe €131 to €409 €131 to €408 2.77% to 4.90% 3.55% to 4.90% Asia/Pacific $28 to $953 $30 to $894 3.32% to 8.00% 3.47% to 8.00% Retail UK £4 to £243 £3 to £111 4.00% to 8.97% 2.95% to 13.29% Asia/Pacific $310 to $2,041 $330 to $1,993 6.75% to 8.50% 6.75% to 8.50% Otherii UK £6 to £182 £14 to £182 3.99% to 9.00% 3.53% to 8.75% Asia/Pacific $205 $186 to $205 8.00% 8.00% i The average estimated rental value for the UK and North America is quoted per square foot, while the average estimated rental value for Europe and Asia/ Pacific is quoted per square metre in line with local practice. ii Property type other represents hotels and student accommodation. Other assets: Unobservable input 30 June 2026 31 December 2025 Retail income strips Discount rate 1.96% to 6.87% 2.22% to 6.67% Equity release mortgagesi Illiquidity premium 2.85% 3.00% Total portfolio property value £2.6bn £2.6bn Assumed property growth rate Risk free + 1.45% Risk free + 1.45% Private placement loansii Credit risk premium: AAA to BBB+ 0.71% to 2.50% 0.49% to 3.06% BBB to BB 0.70% to 6.45% 0.45% to 5.66% Infrastructure fund investments Discount rate 12.00% to 12.50% 12.00% i The equity release mortgages have a no-negative equity guarantee (NNEG) that caps the loan repayment in the event of death, or entry into long-term care, to be no greater than the proceeds from the sale of the property that the loans are secured against. The value of the NNEG, which is recognised as a deduction from the value of the loans, is based on a Black-Scholes option pricing valuation utilising a real-world approach and is estimated using assumptions, including future property growth rate and property price volatility. As stated in Note 2.2, the portfolio of equity release mortgages with a carrying value of £932m was classified as held for sale as at 30 June 2026 (31 December 2025: £929m). ii Note on residential ground rent assets. Included within private placement loans are senior and junior notes backed by residential ground rents with a carrying value of £647m (31 December 2025: £932m), of which £440m are held in the shareholder-backed fund (31 December 2025: £641m). As at 30 June 2026, the notes are valued using a discounted cash flow approach and incorporate the impact of the draft Commonhold and Leasehold Reform Bill published in January 2026 which sets out proposals on the treatment of residential ground rents and effectively caps them at £250 a year before ultimately from 2028 reducing it to a peppercorn after 40 years, and materially impacts the income that can be generated from these assets. We continue to monitor legislative updates relating to ground rents and will refine the valuation methodology and assumptions, as required, based on information available at the reporting date. As at 31 December 2025, there was still ongoing legislative uncertainty around the future outcomes for residential ground rents before the final proposals were published this year. This was captured in the valuation using a probability weighted methodology to generate future cash flows across different plausible scenarios. In addition, an incremental illiquidity spread of 0.30% above the comparable spread implied by the credit rating had been applied to reflect the compensation that a market participant would require at the reporting date due to the uncertainty in future values. The credit ratings of the portfolio range between A+ and BB- (31 December 2025: A+ and BB-). M&G plc Interim Financial Report 2026 58
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14 Fair value methodology (continued) 14.8.2 Level 3 asset sensitivities The table below provides a breakdown of assets within the level 3 fair value hierarchy by investment type, the sensitivity of the fair value to the possible changes in the most significant unobservable inputs, and the impact on IFRS profit/(loss) after tax and shareholders’ equity for those held within the shareholder-backed funds. As at 30 June 2026 Fair value Held in shareholder -backed funds Valuation technique Most significant unobservable input Sensitivity Change in fair value Impact on IFRS profit after tax and shareholders' equityi £m £m £m £m Investment property Property in use 13,777 750 Income capitalisation and otherii Equivalent yield Increase by 50bps (1,275) (52) Decrease by 50bps 1,542 63 Estimated rental value Increase by 10% 1,260 51 Decrease by 10% (1,238) (51) Property under development 372 2 Development cost Increase by 10% 37 — Decrease by 10% (37) — Loans Other mortgage and retail loans 641 — Broker quotesiii Broker quotes Increase by 10% 64 — Decrease by 10% (64) — Other commercial loans 1,220 270 Broker quotesiii Broker quotes Increase by 10% 122 20 Decrease by 10% (122) (20) Equity securities and pooled investment funds 16,197 139 Net asset statements Net asset value Increase by 10% 1,620 10 Decrease by 10% (1,620) (10) Infrastructure fund investmentsiv 58 — Discounted cash flowiv Discount rate Increase by 10% (6) — Decrease by 10% 6 — Debt securities Private placement loansv 4,582 2,675 Discounted cash flowvi Discount rate Increase by 50bps (171) (75) Decrease by 50bps 206 90 Retail income strips 342 295 Discounted cash flowvi Discount rate Increase by 50bps (20) (13) Decrease by 50bps 23 15 Unquoted corporate bonds 3,226 1,047 Broker quotesiii, enterprise valuation, estimated recovery Broker quotes Increase by 10% 323 79 Decrease by 10% (323) (79) Derivative assets 24 24 Discounted cash flow Discount rate Increase by 50bps 1 — Decrease by 50bps (1) — Total level 3 40,439 5,202 M&G plc Interim Financial Report 2026 59
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14 Fair value methodology (continued) As at 31 December 2025 Fair value Held in shareholder -backed funds Valuation technique Most significant unobservable input Sensitivity Change in fair value Impact on IFRS profit after tax and shareholders' equityi £m £m £m £m Investment property Property in use 14,017 808 Income capitalisation and otherii Equivalent yield Increase by 50bps (1,248) (54) Decrease by 50bps 1,509 55 Estimated rental value Increase by 10% 1,265 55 Decrease by 10% (1,221) (53) Property under development 226 1 Development cost Increase by 10% 23 — Decrease by 10% (23) — Loans Other mortgage and retail loans 723 — Broker quotesiii Broker quotes Increase by 10% 72 — Decrease by 10% (72) — Other commercial loans 1,034 274 Broker quotesiii Broker quotes Increase by 10% 103 21 Decrease by 10% (103) (21) Equity securities and pooled investment funds 15,136 140 Net asset statements Net asset value Increase by 10% 1,514 10 Decrease by 10% (1,514) (10) Infrastructure fund investmentsiv 61 — Discounted cash flowiv Discount rate Increase by 10% (6) — Decrease by 10% 6 — Debt securities Private placement loanv 4,852 2,876 Discounted cash flowvi Discount rate Increase by 50bps (219) (97) Decrease by 50bps 215 96 Retail income strips 298 264 Discounted cash flowvi Discount rate Increase by 50bps (17) (11) Decrease by 50bps 20 13 Unquoted corporate bonds 3,209 904 Broker quotesiii, enterprise valuation, estimated recovery Broker quotes Increase by 10% 321 68 Decrease by 10% (321) (68) Derivative assets 25 25 Discounted cash flow Discount rate Increase by 50bps 1 — Decrease by 50bps (1) — Total level 3 39,581 5,292 i Of the £5,202m (31 December 2025: £5,292m) of level 3 assets held in shareholder-backed funds, £273m (31 December 2025: £237m) is held by unit-linked business. These assets are included in the analysis presented however, as the investment risk is borne by the unit-linked policyholders, there is no impact on IFRS profit/(loss) after tax and shareholders’ equity. ii Property in use which is valued using a valuation technique other than income capitalisation is not considered to be material. iii Quotes received from an external pricing service. iv Infrastructure fund investments comprises £58m (31 December 2025: £61m) of equity securities and pooled investment funds. These investments are valued in accordance with the International Private Equity and Venture Capital Valuation guidelines (latest edition December 2022). Valuations are also benchmarked against comparable infrastructure fund transactions. The discount rate is made up of cash flows from dividends due in respect of the equity investments and principal and interest from loan notes in respect of debt investments. v Included within private placement loans is senior and junior notes backed by residential ground rent assets with a carrying value of £647m of which £440m were held in the shareholder-backed fund (31 December 2025: £932m of which £641m were held in the shareholder-backed fund) which were impacted by the draft Commonhold and Leasehold Reform Bill published in January 2026 which sets out proposals on the treatment of residential ground rent income and effectively results in materially capping the income that can be generated from the portfolio. Further information is provided in Note 14.8.1. vi The discount rate is made up of a risk-free rate and a credit spread. The risk-free rate is taken from an appropriate gilt of comparable duration and the spread is taken from a basket of comparable securities. M&G plc Interim Financial Report 2026 60
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14 Fair value methodology (continued) 14.9 Unrealised gains and losses in respect of level 3 assets and liabilities Unrealised gains and losses recognised in the condensed consolidated income statement in respect of assets and liabilities classified as level 3 are analysed as follows: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Investment property (27) 410 191 Equity securities and pooled investment funds 204 362 603 Loans (9) 71 33 Debt securities (209) (127) (75) Third party interest in consolidated funds 92 163 305 Derivatives (3) 1 2 Other financial liabilities — (2) (9) Total 48 878 1,050 14.10 Fair value of assets and liabilities at amortised cost The tables below show the fair value of assets and liabilities carried at amortised cost on the condensed consolidated statement of financial position where the fair value does not approximate the carrying value: As at 30 June 2026 Level 1 Level 2 Level 3 Total fair value Total carrying value £m £m £m £m £m Liabilities: Subordinated liabilities and other borrowings — 5,638 — 5,638 6,074 As at 31 December 2025 Level 1 Level 2 Level 3 Total fair value Total carrying value £m £m £m £m £m Liabilities: Subordinated liabilities and other borrowings — 5,821 312 6,133 6,519 The estimated fair value of subordinated liabilities are based on the quoted market offer price. The fair value of the other liabilities in the tables above have been estimated from the discounted cash flows expected to be received or paid. Where appropriate, an observable market interest rate has been used and the assets and liabilities are classified within level 2. Otherwise, they are included as level 3. M&G plc Interim Financial Report 2026 61
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15 Contingencies and related obligations 15.1 Litigation, tax and regulatory matters In addition to the matters set out in Note 7.3 regarding the portfolio dividend tax litigation, the Group is involved in various litigation and regulatory issues. While the outcome of such litigation and regulatory issues cannot be predicted with certainty, the Directors believe that their ultimate outcome will not have a material adverse effect on the Group’s financial condition, results of operations, or cash flows. 15.2 Guarantees Guarantee funds provide for payments to be made to policyholders on behalf of insolvent life insurance companies and are financed by payments levied on solvent insurance companies based on location, volume and types of business. The estimated reserve for future guarantee fund assessments is not significant, and adequate reserves are available for all anticipated payments for known insolvencies. M&G plc acts as guarantor for certain property leases where a Group company is a lessee. The most material of these is the guarantee provided in respect of the 10 Fenchurch Avenue lease between Saxon Land B.V. and M&G Corporate Services Limited. The Group has also received guarantees in respect of subleasing arrangements, entered into in the normal course of business. On acquisition of a controlling interest in MandG Investments Southern Africa (Pty) Limited (MGSA), M&G Group Limited provided a guarantee in respect of an existing loan facility between Thesele, the seller of MGSA, and Nedbank, a third party bank amounting to ZAR 220m. The guarantee is secured on 7% of the shares that Thesele retains in MGSA. M&G Group Regulated Entity Holding Company Limited is guarantor for the obligations of M&G Corporate Services Limited to make payments under the Scottish Amicable Staff Pension Scheme. The Group has also provided other guarantees and commitments to third parties entered into in the normal course of business, but the Group does not consider that these would result in a significant unprovisioned loss. 15.3 Support for the With-Profits Fund by shareholders PAC is liable to meet its obligations to with-profits policyholders even if the assets of the with-profits sub-funds are insufficient to do so. The assets in excess of amounts expected to be paid for future terminal bonuses and related shareholder transfers (‘the excess assets’) in the with-profits sub-funds could be materially depleted over time by, for example, a significant or sustained equity market downturn. In the unlikely circumstance that the depletion of the excess assets within the with-profits sub-funds was such that the Group’s ability to satisfy policyholders’ reasonable expectations was adversely affected, it might become necessary to restrict the annual distribution to shareholders or to contribute shareholders’ funds to the with-profits sub-funds to provide financial support. There are a number of additional arrangements between the shareholder and the With-Profits Fund as follows: – The With-Profits Fund contributed to the costs of establishing the Polish branch of PAC, and receives repayment through income from charges levied on the business. There is an obligation on the shareholders to ensure that the With-Profits Fund will be repaid in full with interest, and an amount is recognised for the estimated cost to the shareholder of any shortfall at the end of the term of the agreement. The policyholders’ share of the impact is included in the insurance contract liabilities for the With-Profits Fund, with changes in value recognised in finance expenses from insurance contracts issued in the condensed consolidated income statement. The amount held within insurance contract liabilities is £51m as at 30 June 2026 (31 December 2025: £51m). – Transformation costs associated with with-profits new business will be recovered in the pricing of future new business (subject to a shareholder underpin whereby the shareholder will compensate the With-Profits Fund if any of these costs are not fully recovered at the end of the term of the agreement). The policyholders’ share of the impact is included in the insurance contract liabilities for the With-Profits Fund, with changes in value recognised in finance income or expenses from insurance contracts issued in the condensed consolidated income statement. The amount held within insurance contract liabilities is nil as at 30 June 2026 (31 December 2025: nil). – PAC undertook a project to rationalise fund structures (The Target Investment Model programme) by combining existing, smaller funds with the main with-profits asset share fund in a fund umbrella structure. This initiative was expected to yield withholding tax benefits for the business over time. If the expected benefits did not materialise to the With-Profits Fund, the shareholder was committed to compensating the fund for any implementation costs borne that were not fully recouped. The assessment period for the underpin arrangement was five years, running to the end of 2025. As at 31 December 2024, the underpin ceased as the benefits had materialised, however a review will be required until the end of 2028 to determine if the recognised tax benefits have been reversed, potentially necessitating the reactivation of the underpin. – PAC has priced new with-profits business on a basis that is expected to be financially self-supporting or, where this has not been the case, the shareholder is required to cover the cost (known as the New Business Supportability Test (NBST)). The policyholders’ share of the impact is included in the insurance contract liabilities, with changes in value recognised in finance expenses from insurance contracts issued in the condensed consolidated income statement. The amount held within insurance contract liabilities is £7m as at 30 June 2026 (31 December 2025: £7m). M&G plc Interim Financial Report 2026 62
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15 Contingencies and related obligations (continued) The following matters are of relevance with respect to the With-Profits Fund: 15.3.1 Pension mis-selling review The Pensions mis-selling review covers customers who were sold personal pensions between 29 April 1988 and 30 June 1994, and who were advised to transfer out, not join, or opt out of their employer’s Defined Benefit Pension Scheme. During the initial review some customers were issued with guarantees that redress will be calculated on retirement or transfer of their policies. The liability recognised within insurance contract liabilities continues to cover the expected costs associated with these clients. While PAC believed it met the requirements of the FSA (the UK insurance regulator at that time) to issue offers of redress to all impacted customers by 30 June 2002, there is a population of customers who, while an attempt was made at the time to invite them to participate in the review, may not have received their invitation. These customers have been re-engaged, to ensure they have the opportunity to take part in the review. The liability also covers this population. At 30 June 2026 the total liability within insurance contract liabilities, covering both populations described, is £96m (31 December 2025: £96m). The key assumptions underlying the liability in relation to the soft close cases (where all reasonable steps have been taken to contact the customer but the customer has not engaged with the review) are: – average cost of redress per customer; and – proportion of liability (reserve rate). Sensitivities of the value of the liability to a change in assumptions are as follows: As at 30 June 2026 As at 31 December 2025 Assumption Change in assumption £m £m Average cost of redress Increase/decrease by 10% +/-5 +/-5 Reserve rate for soft closed cases Increase/decrease by 10% +/-31 +/-31 Changes in the value of the pension mis-selling liability would not immediately impact profit or loss as the changes would be offset by changes in the allowance for mutualisation and the CSM. Costs arising from this review are met by the excess assets of the With-Profits Sub-Fund (WPSF) and hence have not been charged to the asset shares used in the determination of policyholder bonus rates. An assurance was given that these deductions from excess assets would not impact PAC's bonus or investment policy for policies within the WPSF that were in force at 31 December 2003. This assurance does not apply to new business since 1 January 2004. In the unlikely event that such deductions would affect the bonus or investment policy for the relevant policies, the assurance provides that support would be made available to the sub-fund from PAC’s shareholder resources for as long as the situation continued, so as to ensure that PAC’s policyholders were not disadvantaged. PAC’s comfort in its ability to make such support available was supported by related intra-group arrangements between Prudential plc and PAC, which formalised the circumstances in which capital support would be made available to PAC by Prudential plc. These intra-group arrangements terminated on 21 October 2019, following the demerger of M&G plc from Prudential plc, at which time intra-group arrangements formalising the circumstances in which M&G plc would make capital support available to PAC became effective. 15.3.2 With-profits options and guarantees Certain policies within the With-Profits Fund give potentially valuable guarantees to policyholders, or options to change policy benefits which can be exercised at the policyholders’ discretion. These options and guarantees are valued as part of the policyholder liabilities. Please refer to Note 11 for further details on these options and guarantees. 16 Related party transactions The nature of the related party transactions of the Group has not changed from those described in the Group's consolidated financial statements as at 31 December 2025. There have been no related party transactions in the six months to 30 June 2026 which have had a material effect on the results or financial position of the Group. 17 Post balance sheet events In July 2026, the Group disposed of its entire portfolio of equity release mortgages held by PAC for £1,032m via a public securitisation. As stated in Note 2.2, the portfolio was classified as held for sale as at 30 June 2026 and has since been derecognised. As part of the transaction, PAC has purchased various senior tranches of notes within the public securitisation structure to back the non-profit annuity liability, however the Group does not retain any exposure in the junior and equity tranches of the structure that are exposed most to the variable returns from the underlying equity release mortgages. Consequently, the investment in the notes will be accounted for as financial instruments at fair value through profit or loss and the structure will not be consolidated. The gain arising on the transaction is partly offset by the impact of an increase in insurance contract liabilities as the acquired notes have a lower yield than the portfolio sold. M&G plc Interim Financial Report 2026 63
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Supplementary information S.1 Alternative performance measures Overview of the Group’s key performance measures The Group measures its financial performance using a number of key performance measures (KPMs). The Group also uses a number of alternative performance measures (APMs), which are most commonly derived from the financial statements prepared in accordance with the IFRS financial reporting framework or the Solvency II requirements, but are not defined under IFRS or Solvency II. The APMs are used to complement and not to substitute the disclosures prepared in accordance with IFRS and Solvency II, and provide additional information on the long-term performance of the Group. A list of the APMs used by the Group along with their definitions and how they can be reconciled to the nearest IFRS or Solvency II measure, where applicable, is provided in the table below. All information included in this section does not form part of the independent review performed by the external auditors. The Group’s KPMs are summarised below, along with which of these measures are considered APMs by the Group. Assets under management and administration (AUMA) APM, KPM Closing AUMA represents the total market value of all assets managed, administered or advised on behalf of clients at the end of each financial period and is a key indicator of the scale of the business. Assets managed by the Group include those managed on behalf of our Institutional and Wholesale clients. Assets administered by the Group include assets for which we provide investment management services, in addition to assets we administer where the client has elected to invest in a third party investment manager. Assets under advice are advisory portfolios where clients receive investment recommendations such as strategic asset allocation and model portfolios but retain discretion over executing the advice. AUMA includes assets recognised on the consolidated statement of financial position, together with certain assets managed and/or administered by the Group belonging to external clients not included within the consolidated statement of financial position and, as a result, this measure is not directly reconcilable to the financial statements. Net flows from open business APM, KPM Net flows from open business consists of net client flows from Asset Management, PruFund, Annuities and the elements of Other Life which are open to new business. It excludes net flows from our Traditional with-profits business, third-party funds on our internal platform and certain elements of Other Life closed to new business. Adjusted operating profit before tax APM, KPM Adjusted operating profit (AOP) before tax is one of the Group’s non-GAAP alternative performance measures, which complements the IFRS GAAP measures, and is useful as it allows a deeper understanding of the Group's performance over time. It is therefore key to decision-making and the internal performance management of our operating segments. Certain adjustments that are considered to be non-recurring or strategic, or due to short- term movements not reflective of longer-term performance, are made to the IFRS result before tax to determine adjusted operating profit before tax. Adjustments are in respect of short-term fluctuations in investment returns, mismatches arising on the application of IFRS 17, costs associated with fundamental Group-wide restructuring and transformation, profit or loss arising on business and corporate transactions, impairment and amortisation in respect of acquired intangible assets, and, where relevant, profit or loss from discontinued operations. Included in AOP before tax are the results of the intercompany buy-in transaction executed between the trustees of M&G Group Pension Scheme (M&GGPS) and PAC which are eliminated from the IFRS result before tax on consolidation. AOP before tax for the Life segment does not include the impact of any margins on investment management fee earned by other Group entities and these are recognised in the Asset Management segment as they emerge. The AOP methodology is described in Note 3.2, along with a reconciliation of AOP before tax to the IFRS result after tax in Note 3.3. Key performance measure Type Definition M&G plc Interim Financial Report 2026 64
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Supplementary information (continued) S.1 Alternative performance measures (continued) Key performance measure Type Definition Operating change in Contractual Service Margin (CSM) APM, KPM Operating change in CSM represents changes resulting from new business, interest accretion, experience changes and release of CSM but excludes the impact of short-term market movements, mismatches arising on the application of IFRS 17 and restructuring costs. The impact on these items also includes the intercompany buy-in transaction, consistent with AOP. For the Variable Fee Approach business, operating change in CSM does not include the variance between long-term expected returns and actual returns and the impact of the mismatch arising on the application of the General Measurement Model to the non-profit business written in the With-Profits Fund, similar to the methodology for AOP. The APM is a useful measure of economic value generated as it includes the impact of new business and management actions taken during the year, which are not included in AOP. IFRS result after tax KPM IFRS result after tax demonstrates to our shareholders the financial performance of the Group during the relevant period on an IFRS basis. Underlying capital generation APM For insurance entities and their underlying subsidiaries, underlying capital generation includes the expected Solvency II surplus capital generated from in-force business and the impact of writing new life insurance business. For non-insurance entities, underlying capital generation is based on adjusted operating profit before tax, with certain adjustments made in respect of items that do not reflect the underlying result. It also includes other items such as head office expenses and debt interest costs that contribute to the underlying capital position of the business. Operating capital generation APM, KPM Operating capital generation is the total capital generation before tax, adjusted to exclude market movements relative to those expected under long-term assumptions and to remove other non-operating items, including shareholder restructuring and other costs. Management use this as an indicator on the longer-term components of the movements in the Group’s surplus capital as it is less affected by short-term market volatility and non- recurring items as total capital generation. Total capital generation APM, KPM Total capital generation measures the change in surplus capital during the period, before dividends and capital movements, and capital generated from discontinued operations. Management consider it to be important to the running and monitoring of the business, our decisions on capital allocation and investment, and ultimately our dividend policy. Surplus capital is the amount by which eligible own funds exceed SCR under Solvency II. Shareholder Solvency II coverage ratio APM, KPM Management focuses on a shareholder view of the Solvency II coverage ratio, which is considered to provide a more useful reflection of the capital strength of the Group. The shareholder view includes future with-profits shareholder transfers, but excludes the shareholders’ share of the ring-fenced with-profits estate. The regulatory Solvency II capital position considers the Group’s overall own funds and solvency capital requirement (SCR). The shareholder Solvency II coverage ratio is the ratio of own funds to SCR, excluding the contribution to own funds and SCR from the Group’s ring-fenced With-Profits Fund. Own funds assume transitional measures on technical provisions which have been recalculated using management’s estimate of the impact of operating and market conditions at the valuation date. Both the shareholder view and the regulatory view reflect eligible own funds, in line with the thresholds set by the regulator that set out how much capital of each tier can be used to demonstrate solvency. M&G plc Interim Financial Report 2026 65
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Supplementary information (continued) S.2 Adjusted operating profit before tax (i) Reconciliation of adjusted operating profit before tax by segment to IFRS (loss)/profit before tax For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Asset Management 159 128 280 Life 375 344 764 Corporate Centre (99) (94) (206) Total segmented adjusted operating profit before tax 435 378 838 Short-term fluctuations in investment returns (551) (12) (164) Mismatches arising on application of IFRS 17 (33) 2 (106) Amortisation and impairment of intangible assets acquired in business combinations (13) (11) (52) Profit/(loss) on disposal of business and corporate transactions — 5 (5) Restructuring costs and other (60) (37) (90) IFRS (loss)/profit before tax and non-controlling interests attributable to equity holders (222) 325 421 IFRS profit attributable to non-controlling interests 9 8 18 IFRS (loss)/profit before tax attributable to equity holders (213) 333 439 (ii) Adjusted operating profit before tax by segment and source For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Fee-based revenue 569 521 1,081 Asset Management operating expenses (417) (388) (805) Investment return 16 3 22 Adjusted operating profit attributable to non-controlling interests (9) (8) (18) Total Asset Management 159 128 280 With-profits: PruFund 129 112 265 With-profits: traditional 137 120 258 Annuities 105 113 283 Other Life 4 (1) (42) Total Life 375 344 764 Head office (30) (25) (67) Debt interest cost (69) (69) (139) Corporate Centre (99) (94) (206) Adjusted operating profit before tax 435 378 838 M&G plc Interim Financial Report 2026 66
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Supplementary information (continued) S.2 Adjusted operating profit before tax (continued) Adjusted operating profit before tax arising from with-profits business is further analysed below: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 PruFund Traditional PruFund Traditional PruFund Traditional £m £m £m £m £m £m CSM releasei 129 121 110 107 243 231 Expected return on excess assets 3 13 5 15 10 31 Other (3) 3 (3) (2) 12 (4) With-profits 129 137 112 120 265 258 i The CSM release for the with-profits business is included on an expected basis, calculated as the CSM at start of the period updated to reflect long-term expected investment returns, including the CSM generated on expected new business over the period, multiplied by the expected amortisation factor for the period. Adjusted operating profit before tax arising from annuities is further analysed in the table below: For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Expected return on excess assets 51 61 124 CSM release 58 55 121 Risk adjustment unwind 9 10 19 Asset trading and portfolio management actions 1 6 35 Experience variances and other (11) (19) (16) Onerous contract losses (3) — — Annuities 105 113 283 S.3 Operating change in Contractual Service Margin (CSM) The CSM balances disclosed in Note 11 include the CSM attributable to policyholders arising from non-profit annuities written in the With-Profits Fund and the CSM in respect of M&G Group Limited (MGG) future profits from the management of PAC assets that arises on consolidation of the Group entities. The change during the period in the CSM attributable to policyholders and the CSM from the MGG future profits from the management of PAC assets is not included in operating change in CSM and is included in non-operating and other changes in the CSM. The CSM arising on the underlying products based on the actual investment management charges applied to the policies and excluding the CSM attributable to policyholders is shown in the tables below net of reinsurance. The amortisation factor for the CSM release each year is applied to the CSM in the table. Operating change in CSM and reconciliation to total CSM is further analysed in the tables below: With- profits: PruFund With- profits: Traditional Annuities Other Business Total (before policyholder and group adjustments) Policyholder and group adjustments Total For the six months ended 30 June 2026 £m £m £m £m £m £m £m Opening CSM 2,101 1,721 1,404 189 5,415 1,174 6,589 Interest accreted on the CSM — — 16 3 19 — 19 Expected real-world return 156 122 — — 278 — 278 Risk-free expected return 63 56 — — 119 — 119 Expected return in excess of risk-free 93 66 — — 159 — 159 Release of CSM to adjusted operating profit (129) (121) (58) (11) (319) — (319) New businessi 62 — 2 5 69 — 69 Assumption changes and variances (2) (19) 14 14 7 — 7 Operating change in CSM 87 (18) (26) 11 54 — 54 Market and other impactsii 206 140 20 4 370 30 400 Release of CSM to non-operating (11) (15) — (3) (29) (62) (91) Non-operating and other changes in CSM 195 125 20 1 341 (32) 309 Closing CSM 2,383 1,828 1,398 201 5,810 1,142 6,952 M&G plc Interim Financial Report 2026 67
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Supplementary information (continued) S.3 Operating change in Contractual Service Margin (CSM) (continued) With- profits: PruFund With- profits: Traditional Annuities Other Business Total (before policyholder and group adjustments) Policyholder and group adjustments Total For the six months ended 30 June 2025 £m £m £m £m £m £m £m Opening CSM 1,771 1,588 1,380 175 4,914 1,119 6,033 Interest accreted on the CSM — — 17 3 20 — 20 Expected real-world return 155 135 — — 290 — 290 Risk-free expected return 72 72 — — 144 — 144 Expected return in excess of risk-free 83 63 — — 146 — 146 Release of CSM to adjusted operating profit (110) (107) (55) (8) (280) — (280) New businessi 45 2 7 5 59 — 59 Assumption changes and variances 7 (13) (18) — (24) — (24) Operating change in CSM 97 17 (49) — 65 — 65 Market and other impactsii (75) (35) (2) 13 (99) 41 (58) Release of CSM to non-operating (2) (9) — (3) (14) (59) (73) Non-operating and other changes in CSM (77) (44) (2) 10 (113) (18) (131) Closing CSM 1,791 1,561 1,329 185 4,866 1,101 5,967 With- profits: PruFund With- profits: Traditional Annuities Other Business Total (before policyholder and group adjustments) Policyholder and group adjustments Total For the year ended 31 December 2025 £m £m £m £m £m £m £m Opening CSM 1,771 1,588 1,380 175 4,914 1,119 6,033 Interest accreted on the CSM — — 38 6 44 — 44 Expected real-world return 302 259 — — 561 — 561 Risk-free expected return 138 137 — — 275 — 275 Expected return in excess of risk-free 164 122 — — 286 — 286 Release of CSM to adjusted operating profit (243) (231) (121) (17) (612) — (612) New businessi 111 — 23 10 144 — 144 Assumption changes and variances 15 (25) 117 2 109 — 109 Operating change in CSM 185 3 57 1 246 — 246 Market and other impactsii 156 156 (33) 19 298 186 484 Release of CSM to non-operating (11) (26) — (6) (43) (131) (174) Non-operating and other changes in CSM 145 130 (33) 13 255 55 310 Closing CSM 2,101 1,721 1,404 189 5,415 1,174 6,589 i With-profits: Traditional new business consists of increments on legacy business. ii Market and other impacts includes measurement mismatches relating to accounting for reinsurance contracts. M&G plc Interim Financial Report 2026 68
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Supplementary information (continued) S.4 Assets under management and administration (AUMA) and net client flows (i) Net client flows Net flows from open business Net flows other Total net client flows For the six months ended 30 June For the year ended 31 December For the six months ended 30 June For the year ended 31 December For the six months ended 30 June For the year ended 31 December 2026 2025 2025 2026 2025 2025 2026 2025 2025 £bn £bn £bn £bn £bn £bn £bn £bn £bn Institutional Asset Management 1.1 1.9 4.0 — — — 1.1 1.9 4.0 Wholesale Asset Management 1.1 0.7 3.0 — — — 1.1 0.7 3.0 Asset Management 2.2 2.6 7.0 — — — 2.2 2.6 7.0 With-profits: PruFund (0.1) (0.6) (0.2) — — — (0.1) (0.6) (0.2) With-profits: traditional — — — (2.5) (2.3) (5.4) (2.5) (2.3) (5.4) Annuities — (0.3) 0.4 — — — — (0.3) 0.4 Other Life 0.3 0.4 0.6 (1.7) (2.3) (4.0) (1.4) (1.9) (3.4) Life 0.2 (0.5) 0.8 (4.2) (4.6) (9.4) (4.0) (5.1) (8.6) Corporate assets — — — — — — — — — Total 2.4 2.1 7.8 (4.2) (4.6) (9.4) (1.8) (2.5) (1.6) (ii) Detailed AUMA and net client flows As at 1 January 2026 Gross inflows Gross outflows Net client flows Market/ Other movements As at 30 June 2026 £bn £bn £bn £bn £bn £bn Institutional Asset Management 109.0 7.5 (6.4) 1.1 0.1 110.2 Wholesale Asset Management 73.2 12.6 (11.5) 1.1 4.7 79.0 Other Asset Management 0.7 — — — — 0.7 Asset Management 182.9 20.1 (17.9) 2.2 4.8 189.9 With-profits: PruFund 69.8 3.3 (3.4) (0.1) 3.4 73.1 With-profits: traditional 64.6 0.1 (2.6) (2.5) 2.7 64.8 Annuities 16.1 0.6 (0.6) — — 16.1 Other Life 41.7 1.7 (3.1) (1.4) 2.5 42.8 Lifei 192.2 5.7 (9.7) (4.0) 8.6 196.8 Corporate assets 0.8 — — — (0.1) 0.7 Totalii 375.9 25.8 (27.6) (1.8) 13.3 387.4 As at 1 January 2025 Gross inflows Gross outflows Net client flows Market/ Other movements As at 30 June 2025 £bn £bn £bn £bn £bn £bn Institutional Asset Management 96.1 9.2 (7.3) 1.9 4.9 102.9 Wholesale Asset Management 62.8 9.5 (8.8) 0.7 1.7 65.2 Other Asset Management 0.9 — — — (0.2) 0.7 Asset Management 159.8 18.7 (16.1) 2.6 6.4 168.8 With-profits: PruFund 64.0 2.8 (3.4) (0.6) 1.3 64.7 With-profits: traditional 61.6 0.2 (2.5) (2.3) 5.5 64.8 Annuities 15.1 0.2 (0.5) (0.3) 0.4 15.2 Other Life 44.4 1.4 (3.3) (1.9) (2.4) 40.1 Lifei 185.1 4.6 (9.7) (5.1) 4.8 184.8 Corporate assets 1.0 — — — — 1.0 Totalii 345.9 23.3 (25.8) (2.5) 11.2 354.6 M&G plc Interim Financial Report 2026 69
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Supplementary information (continued) S.4 Assets under management and administration (AUMA) and net client flows (continued) As at 1 January 2025 Gross inflows Gross outflows Net client flows Market/ Other movements As at 31 December 2025 £bn £bn £bn £bn £bn £bn Institutional Asset Management 96.1 18.3 (14.3) 4.0 8.9 109.0 Wholesale Asset Management 62.8 20.3 (17.3) 3.0 7.4 73.2 Other Asset Management 0.9 — — — (0.2) 0.7 Asset Management 159.8 38.6 (31.6) 7.0 16.1 182.9 With-profits: PruFund 64.0 6.4 (6.6) (0.2) 6.0 69.8 With-profits: traditional 61.6 0.2 (5.6) (5.4) 8.4 64.6 Annuities 15.1 1.5 (1.1) 0.4 0.6 16.1 Other Life 44.4 2.9 (6.3) (3.4) 0.7 41.7 Lifei 185.1 11.0 (19.6) (8.6) 15.7 192.2 Corporate assets 1.0 — — — (0.2) 0.8 Totalii 345.9 49.6 (51.2) (1.6) 31.6 375.9 i £166.6bn of AUMA of Life is managed internally by the Group's Asset Management business (£155.6bn as at 30 June 2025, £162.3bn as at 31 December 2025). ii £22.3bn of total AUMA relates to assets under advice (30 June 2025: £18.4bn, 31 December 2025: £20.9bn). (iii) AUMA by asset class As at 30 June 2026 On-balance sheet AUMA External AUMA Total With- profits Unit- linked Annuities & other long- term business Corporate assets Total on- balance sheet Wholesale Institutional Total external Total AUMA £bn £bn £bn £bn £bn £bn £bn £bn £bn Investment property 8.6 0.1 0.6 — 9.3 — 16.1 16.1 25.4 Reinsurance contract assets — 0.1 1.3 — 1.4 — — — 1.4 Equity securities and pooled investment funds 86.4 12.7 0.1 0.1 99.3 49.8 17.0 66.8 166.1 Loans 0.5 — 1.2 — 1.7 — 8.1 8.1 9.8 Debt securities 31.9 0.7 13.3 0.7 46.6 27.7 64.6 92.3 138.9 of which: Corporate 16.4 0.3 9.0 0.7 26.4 13.9 34.4 48.3 74.7 of which: Government 14.8 0.4 3.7 — 18.9 11.3 10.0 21.3 40.2 of which: asset-backed securities (ABS) 0.7 — 0.6 — 1.3 2.5 20.2 22.7 24.0 Derivativesi (0.2) — (1.4) (0.1) (1.7) — (0.7) (0.7) (2.4) Depositsii 8.8 1.3 1.5 — 11.6 — — — 11.6 Cash and cash equivalents 0.8 0.3 0.6 0.5 2.2 1.5 5.1 6.6 8.8 Other 1.1 — 0.2 0.2 1.5 — — — 1.5 Other AUMA — — — — — — — — 26.3 Totaliii 137.9 15.2 17.4 1.4 171.9 79.0 110.2 189.2 387.4 M&G plc Interim Financial Report 2026 70
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Supplementary information (continued) S.4 Assets under management and administration (AUMA) and net client flows (continued) As at 31 December 2025 On-balance sheet AUMA External AUMA Total With- profits Unit- linked Annuities & other long- term business Corporate assets Total on- balance sheet Wholesale Institutional Total external Total AUMA £bn £bn £bn £bn £bn £bn £bn £bn £bn Investment property 8.7 0.1 0.5 — 9.3 — 15.5 15.5 24.8 Reinsurance contract assets — 0.1 1.3 — 1.4 — — — 1.4 Equity securities and pooled investment funds 83.8 12.4 0.1 0.1 96.4 43.8 17.0 60.8 157.2 Loans 0.4 — 1.2 — 1.6 — 8.9 8.9 10.5 Debt securities 30.2 0.7 13.3 0.8 45.0 28.0 63.2 91.2 136.2 of which: Corporate 17.7 0.3 8.8 0.8 27.6 14.5 36.2 50.7 78.3 of which: Government 11.7 0.4 4.0 — 16.1 13.4 9.5 22.9 39.0 of which: ABS 0.8 — 0.5 — 1.3 0.1 17.5 17.6 18.9 Derivativesi 0.2 — (1.3) (0.1) (1.2) 0.1 (0.5) (0.4) (1.6) Depositsii 9.4 1.2 1.2 — 11.8 — — — 11.8 Cash and cash equivalents 0.7 0.2 0.5 0.6 2.0 1.3 4.9 6.2 8.2 Other 1.0 0.1 0.2 0.1 1.4 — — — 1.4 Other AUMA — — — — — — — — 26.0 Totaliii 134.4 14.8 17.0 1.5 167.7 73.2 109.0 182.2 375.9 i Derivative assets are shown net of derivative liabilities. ii Deposits are shown net of unsettled reverse repos. iii Included in total AUMA of £387.4bn (31 December 2025: £375.9bn) is £22.3bn (31 December 2025: £20.9bn) of assets under advice. (iv) AUMA by geography As at 30 June As at 31 December 2026 2025 2025 £bn £bn £bn UK 269.6 250.6 261.7 Rest of Europe 84.8 75.9 80.9 Asia-Pacific 14.9 13.9 15.3 Middle East and Africa 13.9 11.3 13.8 Americas 4.2 2.9 4.2 Total AUMAi 387.4 354.6 375.9 i £22.3bn of total AUMA relates to assets under advice (30 June 2025: £18.4bn, 31 December 2025: £20.9bn). M&G plc Interim Financial Report 2026 71
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Supplementary information (continued) S.5 Solvency II capital position Solvency II overview The Group is supervised as an insurance group by the Prudential Regulation Authority (PRA). Individual insurance undertakings within the Group are also subject to the supervision of the PRA (or other supervisory authorities) on a solo basis under the Solvency II regime. The Solvency II surplus represents the aggregated capital (own funds) held by the Group less the Solvency Capital Requirement (SCR). Own funds is the Solvency II measure of capital available to meet losses, and is based on the assets less liabilities of the Group, subject to certain restrictions and adjustments. Available own funds reflect all capital available to the Group and eligible own funds are net of restrictions applied in line with the thresholds set by the regulator that limit the amount of each tier of capital that can be used to demonstrate solvency. The SCR is calculated using the Group’s Internal Model, which calculates the SCR as the 99.5th percentile (or 1- in-200) worst outcome over the coming year, out of 100,000 equally likely scenarios, allowing for the dependency between the risks the business is exposed to. Estimated reconciliation of IFRS shareholders' equity to Group Solvency II own funds As at 30 June As at 31 December 2026 2025 2025 £bn £bn £bn IFRS shareholders’ equity 2.7 3.3 3.2 Deduct goodwill and intangible assets (1.5) (1.5) (1.5) Net impact of policyholder liabilities and reinsurance assets valued on Solvency II basis 14.3 12.7 13.7 Impact of introducing Solvency II risk margin (net of transitional measures) (0.4) (0.3) (0.4) Impact of measuring assets and liabilities in line with Solvency II principles 1.2 0.9 0.9 Recognise own shares 0.1 — — Other 0.1 — 0.1 Solvency II excess of assets over liabilities 16.5 15.1 16.0 Subordinated debt capital 2.4 2.5 2.5 Ring-fenced fund restrictions (7.7) (6.2) (7.1) Solvency II eligible own funds 11.2 11.4 11.4 The key items in the reconciliation are explained below: – Goodwill and intangible assets: these assets are not recognised under Solvency II as they are not readily available to meet emerging losses; – Policyholder liability and reinsurance asset valuation differences: there are significant differences in the valuation of technical provisions between IFRS 17 and Solvency II. One of the key drivers of the difference between IFRS shareholders' equity and Solvency II eligible own funds is the requirement to hold a CSM and risk adjustment under IFRS 17; these are removed under Solvency II. In addition, IFRS 17 captures the shareholder share of surplus assets on the With-Profits Fund in shareholders' equity whereas 100% of with-profits surplus assets are captured in Solvency II excess of assets over liabilities, however this is subsequently restricted by the ring-fenced fund restrictions. These are partially offset by differences in the liability discount rate; the IFRS 17 discount rate includes an illiquidity premium whereas Solvency II uses a risk-free rate for with-profits business and applies a matching adjustment for annuity business; – Solvency II risk margin (net of transitional measures): the risk margin is a significant component of technical provisions required to be held under Solvency II. These additional requirements are partially mitigated by transitional measures which allow the impact to be gradually introduced over a period of 16 years from the introduction of Solvency II on 1 January 2016; – Subordinated debt capital: subordinated debt is treated as a liability in the IFRS financial statements and in determining the excess of assets over liabilities in the Solvency II balance sheet. However, for Solvency II own funds, the debt can be treated as capital; and – Ring-fenced fund restrictions: any excess of the own funds over the solvency capital requirement from the With-Profits Fund is restricted as these amounts are not available to meet losses elsewhere in the Group. M&G plc Interim Financial Report 2026 72
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Supplementary information (continued) S.5 Solvency II capital position (continued) The Group’s total estimated own funds are analysed by Tier as follows: As at 30 June As at 31 December 2026 2025 2025 £bn £bn £bn Tier 1 (unrestricted) 8.3 8.4 8.4 Tier 2 2.4 2.5 2.5 Tier 3 0.5 0.5 0.5 Total eligible own funds 11.2 11.4 11.4 The Group’s Tier 2 capital consists of subordinated debt instruments. The terms of these instruments allow them to be treated as capital for the purposes of Solvency II. The instruments were originally issued by Prudential plc, and subsequently substituted to the Parent Company, as permitted under the terms and conditions of each applicable instrument, prior to demerger. The details of the Group’s subordinated liabilities are shown in Note 13. The Solvency II value of the debt differs to the IFRS carrying value due to a different basis of measurement on the respective balance sheets. The Group’s Tier 3 capital of £0.5bn (31 December 2025: £0.5bn) relates to deferred tax asset balances. There are limits, prescribed by the regulator, on the amount of different types of own funds that can be used to demonstrate solvency. While the capital remains available to the Group, where the sum of capital classed as Tier 2 and Tier 3 exceeds 50% of the regulatory Group Solvency Capital Requirement, own funds must be restricted by this amount to determine eligible own funds. At 30 June 2026, 30 June 2025 and 31 December 2025 the sum of capital classed as Tier 2 and Tier 3 has not breached the limit and there is no eligible own funds restriction. Estimated shareholder view of the Solvency II capital position The Group focuses on a shareholder view of the Solvency II capital position, which is considered to provide a more relevant reflection of the capital strength of the Group. The estimated shareholder Solvency II capital position for the Group is shown below: As at 30 June As at 31 December 2026 2025 2025 £bn £bn £bn Shareholder Solvency II eligible own funds 8.4 8.3 8.5 Shareholder Solvency II SCR (3.4) (3.6) (3.5) Shareholder Solvency II surplus 5.0 4.7 5.0 Shareholder Solvency II coverage ratioi 247% 230% 242% i Shareholder Solvency II coverage ratio has been calculated using unrounded figures. The Group’s shareholder Solvency II capital position excludes the contribution to own funds and SCR from the ring-fenced With-Profits Fund. Further information on the ring-fenced With-Profits Fund’s capital position is provided in the ‘Estimated With-Profits Fund view of the Solvency II capital position’ section below. In accordance with the Solvency II requirements, these results include: – A Solvency Capital Requirement which has been calculated using the Group’s Internal Model; – Transitional measures, which are recalculated as at the valuation date, using management’s estimate of the impact of operating and market conditions. – A matching adjustment for non-profit annuities and BPA Plus, based on approval from the PRA; and – M&G Group Limited and other undertakings carrying out financial activities consolidated under local sectoral or notional sectoral capital requirements. M&G plc Interim Financial Report 2026 73
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Supplementary information (continued) S.5 Solvency II capital position (continued) Breakdown of the shareholder Solvency II SCR by risk type The shareholder undiversified capital requirement is presented by risk type below. As at 30 June As at 31 December 2026 2025 2025 £bn £bn £bn Equity 1.5 1.5 1.5 Property 0.6 0.7 0.6 Interest rate 0.3 0.3 0.3 Credit 1.3 1.3 1.2 Currency 1.0 1.0 1.1 Longevity 0.9 0.9 1.0 Lapse 0.5 0.5 0.5 Operational & expense 1.2 2.1 2.1 Sectorali 0.5 0.5 0.5 Total undiversified 7.8 8.8 8.8 Diversification, deferred tax, and other (4.4) (5.2) (5.3) Shareholder SCR 3.4 3.6 3.5 i Includes entities included within the Group’s Solvency II capital position on a sectoral or notional sectoral basis, the most material of which is M&G Group Limited. Sensitivity analysis of the Group's Solvency II surplus and shareholder Solvency II coverage ratio The estimated sensitivity of the Group’s shareholder Solvency II coverage ratio to significant changes in market conditions are shown below. All sensitivities are presented after an assumed recalculation of transitional measures on technical provisions and recalculation of the eligible own funds restriction. The sensitivity results demonstrate the effect of an instantaneous change in a key assumption while other assumptions remain unchanged. In reality, changes may occur over a period of time and there may be a correlation between the risks. As at 30 June 2026 As at 30 June 2025 As at 31 December 2025 Surplus Shareholder coverage ratio Surplus Shareholder coverage ratio Surplus Shareholder coverage ratio £bn % £bn % £bn % Base (as reported) 5.0 247% 4.7 230% 5.0 242% 20% instantaneous fall in equity markets 4.6 246% 4.2 219% 4.5 238% 20% instantaneous fall in property markets 4.7 237% 4.3 218% 4.7 232% 50bp reduction in interest rates 5.0 244% 4.6 224% 5.0 238% 100bp widening in credit spreads 4.8 244% 4.5 227% 4.8 239% 20% credit asset downgradei 4.9 243% 4.5 224% 4.8 237% i Average impact of one full letter downgrade across 20% of assets exposed to credit risk. M&G plc Interim Financial Report 2026 74
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Supplementary information (continued) S.5 Solvency II capital position (continued) Estimated With-Profits Fund view of the Solvency II capital position The With-Profits Fund view of the Solvency II capital position represents the standalone capital strength of the Group’s ring-fenced With-Profits Fund. This view of Solvency II capital takes into account the assets, liabilities, and risk exposures within the ring-fenced With-Profits Fund, which includes the With-Profits Sub-Fund (WPSF) and Defined Charge Participating Sub-Fund (DCPSF). The estimated Solvency II capital position for the Group under the With-Profits Fund view is shown below: As at 30 June As at 31 December 2026 2025 2025 £bn £bn £bn With-Profits Fund Solvency II own funds 10.5 9.3 10.0 With-Profits Fund Solvency II SCR (2.8) (3.1) (2.9) With-Profits Fund Solvency II surplus 7.7 6.2 7.1 With-Profits Fund Solvency II coverage ratioi 375% 303% 342% i With-Profits Fund Solvency II coverage ratio has been calculated using unrounded figures. Estimated regulatory view of the Solvency II capital position The estimated Solvency II capital position for the Group under the regulatory view is shown below: As at 30 June As at 31 December 2026 2025 2025 £bn £bn £bn Solvency II Eligible own funds 11.2 11.4 11.4 Solvency II SCR (6.2) (6.7) (6.4) Solvency II surplus 5.0 4.7 5.0 Solvency II coverage ratioi 181% 170% 178% i Solvency II coverage ratio has been calculated using unrounded figures. The results include transitional measures, which are recalculated as at the valuation date, using management’s estimate of the impact of operating and market conditions. S.6 Capital generation The level of surplus capital is an important financial consideration for the Group. Capital generation measures the change in surplus capital during the reporting period, and is therefore considered a key measure for the Group. It is integral to the running and monitoring of the business, capital allocation and investment decisions, and ultimately the Group’s dividend policy. The overall change in Solvency II surplus capital over the period is analysed as follows: Total capital generation is the total change in Solvency II surplus capital before dividends and capital movements, and capital generated from discontinued operations. As set out in the overview of the Solvency II capital position, as at 30 June 2026, 30 June 2025 and 31 December 2025 there is no restriction to eligible own funds as the sum of tier 2 and tier 3 capital does not exceed the threshold set by the regulator. Operating capital generation is total capital generation before tax, adjusted to exclude market movements relative to those expected under long-term assumptions and to remove other non-operating items, including shareholder restructuring and other costs as defined under adjusted operating profit before tax. It has two components: – Underlying capital generation, which includes: the underlying expected surplus capital from the in-force life insurance business; the change in surplus capital as a result of writing new life insurance business; the adjusted operating profit before tax and associated regulatory capital movements from Asset Management; and other items, including head office expenses and debt interest costs; and – Other operating capital generation, which includes non-market related experience variances, assumption changes, modelling changes and other movements. M&G plc Interim Financial Report 2026 75
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Supplementary information (continued) S.6 Capital generation (continued) Dividends and capital movements primarily represent external dividends paid to shareholders, the impact of any share buy-back programme 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 5.1% pa for 2026 and 6.2% pa for 2025. For annuity business, the assumed average return on assets backing capital was 4.5% pa for 2026 and 5.2% pa for 2025. The Group’s capital generation results in respect of the six months ended 30 June 2026 and 30 June 2025, and year ended 31 December 2025 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. For the six months ended 30 June 2026 For the six months ended 30 June 2025 Asset Management Life Corporate Centre Total Asset Management Life Corporate Centre Total £m £m £m £m £m £m £m £m Underlying capital generation 129 294 (119) 304 136 289 (94) 331 Other operating capital generation 10 57 1 68 3 73 1 77 Operating capital generation 139 351 (118) 372 139 362 (93) 408 Market movements 24 (60) Restructuring and other (55) (36) Tax 34 42 Total capital generation 375 354 For the year ended 31 December 2025 Asset Management Life Corporate Centre Total £m £m £m £m Underlying capital generation 275 478 (224) 529 Other operating capital generation 29 200 7 236 Operating capital generation 304 678 (217) 765 Market movements 33 Restructuring and other (111) Tax 146 Total capital generation 833 M&G plc Interim Financial Report 2026 76
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Supplementary information (continued) S.6 Capital generation (continued) For the six months ended 30 June 2026 For the six months ended 30 June 2025 For the year ended 31 December 2025 Own fundsi SCRi Surplus Own fundsi SCRi Surplus Own fundsi SCRi Surplus £m £m £m £m £m £m £m £m £m Asset Management Asset Management 143 (14) 129 124 12 136 258 17 275 Asset Management underlying capital generation 143 (14) 129 124 12 136 258 17 275 Life With-profits: PruFund 169 (43) 126 147 (32) 115 311 (77) 234 In-force 113 10 123 104 22 126 210 41 251 New business 56 (53) 3 43 (54) (11) 101 (118) (17) With-profits: traditional 79 4 83 70 10 80 153 21 174 Annuities 77 7 84 95 4 99 193 (101) 92 In-force 81 23 104 92 20 112 186 40 226 New business (4) (16) (20) 3 (16) (13) 7 (141) (134) Other (1) 2 1 (12) 7 (5) (26) 4 (22) Life underlying capital generation 324 (30) 294 300 (11) 289 631 (153) 478 Corporate Centre Interest & head office cost (118) (1) (119) (112) 18 (94) (236) 12 (224) Underlying capital generation 349 (45) 304 312 19 331 653 (124) 529 Asset Management 10 — 10 3 — 3 16 13 29 Life (58) 115 57 (61) 134 73 (64) 264 200 Corporate Centre 3 (2) 1 1 — 1 3 4 7 Other operating capital generation (45) 113 68 (57) 134 77 (45) 281 236 Operating capital generation 304 68 372 255 153 408 608 157 765 Market movements (59) 83 24 (97) 37 (60) (32) 65 33 Restructuring and other (55) — (55) (36) — (36) (111) — (111) Tax 56 (22) 34 10 32 42 67 79 146 Total capital generation 246 129 375 132 222 354 532 301 833 Dividends and capital movements (370) — (370) (392) — (392) (557) — (557) Total (decrease)/increase in Solvency II surplus (124) 129 5 (260) 222 (38) (25) 301 276 i Own funds and SCR movements shown as per the shareholder Solvency II capital position, and do not include the own funds and SCR in respect of the ring- fenced With-Profits Fund. M&G plc Interim Financial Report 2026 77
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Supplementary information (continued) S.7 Financial ratios Included in this section are details of how some of the financial ratios used to help analyse the performance of the Asset Management business are calculated. (i) Cost-to-income ratio Cost-to-income ratio is a measure of cost efficiency which analyses costs as a percentage of revenue. For the six months ended 30 June For the year ended 31 December 2026 2025 2025 £m £m £m Total Asset Management operating expenses 417 388 805 Adjustment for revaluationsi (3) — (5) Total Asset Management adjusted costs 414 388 800 Total Asset Management fee-based revenue 569 521 1,081 Less: Performance fees and carried interestii (4) (7) (15) Total Asset Management underlying fee-based revenues 565 514 1,066 Cost-to-income ratio 73% 75% 75% i Reflects the revaluation of provisions relating to performance based awards that are linked to underlying fund performance. M&G Group hold units in the underlying funds to hedge the exposure on these awards. ii Performance fees are net of the corresponding performance-related remuneration payable under Asset Management employee incentive schemes. (ii) Average revenue margin This represents the average fee revenue yield on fee business and demonstrates the margin being earned on the assets we manage or administer. For the six months ended 30 June For the year ended 31 December 2026 2025 2025 Average AUMAi Revenue Revenue marginii Average AUMAi Revenue Revenue marginii Average AUMAi Revenue Revenue marginii £bn £m bps £bn £m bps £bn £m bps Institutional Asset Management 109 200 37 97 184 38 101 383 38 Wholesale Asset Management 76 209 55 64 176 55 67 370 55 Internal 164 156 19 155 154 20 157 313 20 Total Asset Management 349 565 32 316 514 32 325 1,066 33 i Average AUMA represents the average total market value of all financial assets managed and administered on behalf of clients during the financial period. Average AUMA is calculated using a 13-point average of monthly closing AUMA for full-year periods and 7-point average of monthly closing AUMA for half-year periods. ii Revenue margin is calculated by annualising underlying fee-based revenues earned, which excludes performance fees, in the period divided by average AUMA for the period. Revenue margin relates to the total margin for internal and external revenue. S.8 Credit risk The Group’s exposure to credit risk primarily arises from the annuity portfolio, which holds substantial volumes of public and private fixed income investments on which a certain level of defaults and downgrades are expected. Exposure to credit risk also arises on the shareholders’ share of the excess assets in the With-Profits Fund. While the with-profits and unit-linked funds have large holdings of assets subject to credit risk, the shareholder results of the Group are not directly exposed to credit defaults on assets held in these components of business. This also applies to investments related to BPA Plus held within the With-Profits Fund which are presented within the Annuities and other long-term business component. However, the shareholder is indirectly exposed to credit risk from these components of business in relation to the future value of shareholder transfers from with-profits business and charges levied on unit-linked and asset management business. The direct exposure of the Group’s shareholders’ equity to credit default risk in the Other component is small in the context of the Group. Credit risk is managed through a robust credit and counterparty framework which includes: policies, standards, appetite statements, limits and triggers (including relevant governance and controls); investment constraints and limits on the asset portfolios (in particular, in relation to credit rating, seniority, sector and issuer), and counterparties in particular for derivatives, reinsurance and cash; and a robust credit rating process. M&G plc Interim Financial Report 2026 78
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Supplementary information (continued) S.8 Credit risk (continued) The credit ratings, information or data contained in this report which are attributed and specifically provided by Standard & Poor’s, Moody’s and Fitch and their respective affiliates and suppliers (Content Providers) is referred to here as the Content. Reproduction of any content in any form is prohibited except with the prior written permission of the relevant party. The Content Providers do not guarantee the accuracy, adequacy, completeness, timeliness or availability of any Content and are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, or for the results obtained from the use of such Content. The Content Providers expressly disclaim liability for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of the Content. A reference to a particular investment or security, a rating or any observation concerning an investment that is part of the Content is not a recommendation to buy, sell or hold any such investment or security, nor does it address the suitability of an investment or security and should not be relied on as investment advice. Debt securities The table below presents the Group's debt securities by asset class and external credit rating issued for each component of business. AAA AA+ to AA- A+ to A- BBB+ to BBB- Below BBB- Other Total As at 30 June 2026 £m £m £m £m £m £m £m Government Sovereign debt 3,057 16,816 1,951 2,623 1,906 125 26,478 With-profits 2,388 12,233 1,858 2,480 1,874 4 20,837 Unit-linked 221 1,249 75 107 32 120 1,804 Annuities and other long-term business 444 2,764 18 35 — — 3,261 Other 4 570 — 1 — 1 576 Quasi-sovereign and Public sector debt 195 1,221 245 550 741 236 3,188 With-profits 180 559 166 538 739 157 2,339 Unit-linked 13 49 23 12 2 1 100 Annuities and other long-term business 2 613 56 — — 78 749 Corporate debt 765 3,286 9,922 10,547 2,136 7,460 34,116 With-profits 478 2,096 7,506 7,713 1,992 3,993 23,778 Unit-linked 36 161 551 656 71 38 1,513 Annuities and other long-term business 178 1,006 1,846 2,159 65 3,417 8,671 Other 73 23 19 19 8 12 154 Asset-backed securities 186 213 449 247 144 1,446 2,685 With-profits 103 158 262 171 144 1,324 2,162 Unit-linked 4 6 3 10 — — 23 Annuities and other long-term business 73 49 184 66 — 122 494 Other 6 — — — — — 6 Structured notes — — — — 36 51 87 With-profits — — — — 34 21 55 Unit-linked — — — — 2 — 2 Annuities and other long-term business — — — — — 30 30 Total debt securities 4,203 21,536 12,567 13,967 4,963 9,318 66,554 With-profits 3,149 15,046 9,792 10,902 4,783 5,499 49,171 Unit-linked 274 1,465 652 785 107 159 3,442 Annuities and other long-term business 697 4,432 2,104 2,260 65 3,647 13,205 Other 83 593 19 20 8 13 736 M&G plc Interim Financial Report 2026 79
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Supplementary information (continued) S.8 Credit risk (continued) AAA AA+ to AA- A+ to A- BBB+ to BBB- Below BBB- Other Total As at 31 December 2025 £m £m £m £m £m £m £m Government Sovereign debt 3,137 14,792 2,128 2,892 1,697 115 24,761 With-profits 2,573 10,243 1,930 2,621 1,660 — 19,027 Unit-linked 59 1,178 175 243 37 114 1,806 Annuities and other long-term business 500 2,799 23 28 — — 3,350 Other 5 572 — — — 1 578 Quasi-sovereign and Public sector debt 171 1,252 234 543 621 220 3,041 With-profits 167 616 168 522 617 134 2,224 Unit-linked 2 29 10 21 4 6 72 Annuities and other long-term business 2 607 56 — — 80 745 Corporate debt 900 3,346 10,446 11,193 2,167 7,938 35,990 With-profits 548 2,185 8,271 8,506 1,945 4,013 25,468 Unit-linked 25 110 514 629 149 141 1,568 Annuities and other long-term business 203 1,018 1,640 2,039 66 3,772 8,738 Other 124 33 21 19 7 12 216 Asset-backed securities 175 284 267 340 159 1,818 3,043 With-profits 83 172 125 263 159 1,691 2,493 Unit-linked 4 11 2 7 — 1 25 Annuities and other long-term business 76 101 140 70 — 126 513 Other 12 — — — — — 12 Structured notes — — — — 3 70 73 With-profits — — — — 3 39 42 Unit-linked — — — — — 2 2 Annuities and other long-term business — — — — — 29 29 Total debt securities 4,383 19,674 13,075 14,968 4,647 10,161 66,908 With-profits 3,371 13,216 10,494 11,912 4,384 5,877 49,254 Unit-linked 90 1,328 701 900 190 264 3,473 Annuities and other long-term business 781 4,525 1,859 2,137 66 4,007 13,375 Other 141 605 21 19 7 13 806 The Group has holdings in asset-backed securities (ABS) which are presented within debt securities on the condensed consolidated statement of financial position. The Group’s holdings in ABS, which comprise residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), collateralised debt obligations (CDO) funds and other asset-backed securities are shown within the table above. M&G plc Interim Financial Report 2026 80
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Supplementary information (continued) S.8 Credit risk (continued) Debt securities with no external credit rating are classified as ‘other’. The following table shows the majority of debt securities shown as ‘other’ are allocated an internal rating and are considered to be of investment grade quality: As at 30 June 2026 As at 31 December 2025 £m £m AAA 138 130 AA+ to AA- 780 901 A+ to A- 3,354 3,508 BBB+ to BBB- 2,202 2,240 Below BBB- 1,276 1,704 Unrated 1,568 1,678 Total 9,318 10,161 In the table above, AAA is the highest possible rating. Investment grade financial assets are classified within the range of AAA to BBB- ratings. Financial assets which fall outside this range are classified as below BBB- and are non-investment grade. The Group’s exposure to sovereign debt is analysed by issuer as follows: With- profits Unit-linked Annuities and other long-term business Other Total As at 30 June 2026 £m £m £m £m £m Government Sovereign debt securities by country: UK 7,862 1,034 2,767 524 12,187 Germany 764 69 44 — 877 Other European countries 1,057 66 275 — 1,398 Total Europe 9,683 1,169 3,086 524 14,462 United States 3,531 190 — — 3,721 Latin American countries 929 23 35 — 987 South Africa 985 122 — 1 1,108 South Korea 696 33 — — 729 Indonesia 584 25 — — 609 Malaysia 747 32 — — 779 Singapore 125 6 — — 131 Philippines 473 21 — — 494 Thailand 391 18 — — 409 India 841 40 — — 881 Other 1,852 125 140 51 2,168 Total 20,837 1,804 3,261 576 26,478 M&G plc Interim Financial Report 2026 81
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Supplementary information (continued) S.8 Credit risk (continued) With- profits Unit-linked Annuities and other long-term business Other Total As at 31 December 2025 £m £m £m £m £m Government Sovereign debt securities by country: UK 5,980 989 2,802 527 10,298 Germany 632 39 79 — 750 Other European countries 1,096 47 420 — 1,563 Total Europe 7,708 1,075 3,301 527 12,611 United States 3,241 197 — — 3,438 Latin American countries 711 24 29 — 764 South Africa 1,012 116 — 1 1,129 South Korea 845 52 — — 897 Indonesia 752 42 — — 794 Malaysia 941 53 — — 994 Singapore 273 17 — — 290 Philippines 566 34 — — 600 Thailand 473 29 — — 502 India 868 54 — — 922 Other 1,637 113 20 50 1,820 Total 19,027 1,806 3,350 578 24,761 As at 30 June 2026 Other European countries included £862m (31 December 2025: £1,028m) and other included £1,224m (31 December 2025: £1,112m) of Supranational Government bonds. Exposure of debt securities by sector The exposure of annuities and other long-term business to debt securities is analysed below by sector: As at 30 June As at 31 December 2026 2025 £m £m Government 4,022 4,109 Real Estate 2,847 2,915 of which residential 1,605 1,707 of which commercial 1,242 1,208 Financial 2,304 2,491 Utilities 1,832 1,738 Industrial 426 420 Consumer 619 490 Communications 373 365 Other 782 847 Total 13,205 13,375 M&G plc Interim Financial Report 2026 82