Highlights

  • Berenberg sets a GBX 342 target for M&G and GBX 275 for MONY.
  • M&G outlines a potential GBP 230 million one-off reduction in Solvency II Own Funds linked to ground rent proposals.
  • MONY reports revenue and adjusted EBITDA growth, with a GBP 30 million share buyback completed in December 2025.

Berenberg has issued Buy ratings on M&G PLC (LSE:MNG) and MONY Group PLC (LSE:MONY), setting target prices of GBX 342 and GBX 275, respectively. Despite the broker’s endorsement, as of 11 February, MONY shares were trading at 151.20p, down 1.05%, while M&G shares stood at 308.88p, down 0.36%.

M&G Details Ground Rent Exposure

On 27 January, M&G confirmed direct exposure of GBP 722 million to ground rent assets through its Prudential Assurance Company shareholder fund.

Under proposed legislative changes, the company expects a reduction of approximately GBP 230 million in Group Solvency II Own Funds. The Solvency Capital Requirement (SCR) would decline by around GBP 90 million, resulting in a surplus reduction of about GBP 140 million. The shareholder Solvency II coverage ratio is projected to decrease by roughly one percentage point, while the leverage ratio would rise by less than one percentage point.

From an IFRS perspective, M&G anticipates a Day 1 non-operating pre-tax loss of approximately GBP (310) million. Once the changes take effect, likely in 2028, the group forecasts a reduction of about GBP 15 million in annual adjusted operating profit and underlying capital generation, prior to mitigation measures.

The company stated it supports the Government’s objective to enhance leaseholder protection while assessing the broader implications for investors and UK asset markets.

MONY Reports Growth Across Core Segments

In its December trading update covering 1 July to 30 November 2025, MONY Group reported growth in revenue and adjusted EBITDA. Management expectations for the full year remain unchanged ahead of results scheduled for 23 February 2026.

Performance in the second half was supported by Money and Energy segments, with improved trends in Insurance. Borrowing growth was driven by credit card deal availability, alongside increased current account switching activity.

SuperSaveClub membership reached two million users, contributing to Group revenue. The company also completed a GBP 30 million share buyback programme launched in February 2025.

Additionally, MONY shifted from a controlling stake in Ice Travel Group to a minority position as of 1 December 2025, aiming to streamline operational focus while retaining strategic influence.

Outlook for Both Companies

M&G will provide further detail on the financial impact of proposed ground rent legislation at its 2025 full-year results presentation. Meanwhile, MONY’s Board expects adjusted EBITDA for FY25 to align with current market consensus and anticipates easing headwinds into FY26.

Berenberg’s Buy ratings place both companies in focus as investors assess regulatory developments, earnings momentum, and market conditions.

Berenberg’s decision to assign Buy ratings to M&G and MONY signals confidence in their respective trajectories despite regulatory and market pressures. With target prices of GBX 342 for M&G and GBX 275p for MONY, attention now turns to upcoming earnings updates and the progression of legislative proposals that may influence financial metrics in the years ahead.

Frequently Asked Questions (F&Q)

  1. What target prices did Berenberg set for M&G and MONY?
    Berenberg set a target price of 342p for M&G and 275p for MONY Group.
  2. How much is M&G exposed to ground rent assets?
    M&G reported GBP 722 million in direct exposure to ground rent assets through its Prudential Assurance Company shareholder fund.
  3. What were the key points in MONY’s latest trading update?
    MONY reported growth in revenue and adjusted EBITDA, completed a GBP 30 million share buyback, and confirmed that full-year expectations remain unchanged ahead of FY25 results.