Is MNG.L (M&G plc) Halal or Haram?

Based on our AAOIFI-standard shariah screening, MNG.L is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 4 of 4 compliance screens. M&G plc's core business activity was found to be non-compliant. Its debt-to-market-cap ratio of 91.69% exceeds the ≤33% threshold. Its interest income of 29.75% exceeds the ≤5% limit. Its cash & securities ratio of 64.19% exceeds the ≤33% threshold.

M&G plc is a major international savings and investment business, demerged from Prudential in 2019, managing billions in assets for retail and institutional clients. The company operates through two main divisions: Asset Management, which handles wholesale and institutional funds, and Retail and Savings, offering products like the famous PruFund, annuities, and corporate pensions. Its core business revolves around managing capital across equity, fixed income, and real estate markets to generate returns for savers and retirees. For Muslim investors using HalalStocks.co.uk, M&G plc is classified as Not Halal (Haram) because it failed all four screening criteria. The primary issue lies in its core business model; as a conventional insurer and asset manager, it heavily utilizes interest-based lending and non-compliant derivatives, making the underlying activity impermissible. Even if the business activity were overlooked , the financial ratios provide no room for flexibility. Financially, the company's structure is deeply leveraged with interest-bearing debt representing 91.7% of its market capitalization, far exceeding the 33% limit set by AAOIFI standards. Furthermore, nearly 30% of its revenue comes from interest income, and its cash and interest-bearing securities make up 64.2% of its market value. These figures indicate that the company' s operations are inextricably linked to riba (interest), making it unsuitable for a shariah-compliant portfolio. Investors should note that financial services firms like M&G often struggle with compliance due to the nature of conventional banking and insurance regulations which mandate holding interest-bearing reserves. Unless the company pivots to a dedicated Takaful (Islamic insurance) model or strictly ethical funds excluding interest, it will likely remain non-compliant for the foreseeable future. M&G plc operates in the Financial Services sector under the Asset Management industry and is headquartered in London, GB. The company is led by CEO Paolo Andrea Rossi and employs approximately 6,151 people.

MNG.L was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. MNG.L passed 0 of these 4 screens.

MNG.L was last screened on 2026-03-01. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.