March 18 (Reuters) - Insurer Prudential posted a 12% rise in annual new business profit on Wednesday, helped by resilient momentum in its Asia and Africa market. The London and Hong Kong dual-listed
Prudential posts 12% rise in new business profit, flags $7 billion shareholder returns
Prudential’s Financial Performance and Strategic Outlook
By Roshan Thomas and Sneha Kumar
Annual New Business Profit Growth
March 18 (Reuters) - Insurer Prudential posted a 12% rise in annual new business profit on Wednesday, helped by resilient momentum in its Asia and Africa markets.
Shareholder Returns and Capital Strategy
The London and Hong Kong dual-listed company said it now expects to return more than $7 billion to shareholders over the 2024–2027 period, including a $1.3 billion capital return in 2027.
Traditional Embedded Value (TEV) Basis
The insurer said its new business profit on a traditional embedded value (TEV) basis was $2.78 billion for the year ended December 31, compared to $2.46 billion in fiscal 2024, up 12% on a constant exchange rate basis.
"We remain constructive on the shift toward buybacks and shareholder returns as a key theme for 2026 and beyond, particularly as some companies transition from a period of heavy capex in 2025 toward a greater focus on earnings resilience and capital discipline," said Marc Jocum, senior product and investment strategist at Global X ETFs.
Regional Performance Highlights
Hong Kong Unit
New business profit in its key Hong Kong unit rose 12%, driven by stronger sales and margins across local and Mainland Chinese customers.
"We carry the momentum of 2025 into 2026 and are confident in our double-digit growth trajectory across our key metrics," CEO Anil Wadhwani said.
Mainland China Joint Venture
At the group's Mainland China joint venture, CITIC Prudential Life, new business profit rose 27%, supported by strong annual premium equivalent (APE) sales growth in the second half.
The business expanded its agency force and strengthened its partnership with CITIC, focusing on top outlets to boost productivity, while maintaining disciplined risk management.
Indonesian Segment
Its Indonesian segment posted 11% growth in new business profit, driven by margin expansion on a shift to higher-margin products.
Additional Financial Metrics and Leadership Changes
Adjusted Operating Profit and Dividend
In fiscal 2025, adjusted operating profit before tax increased to $3.31 billion from $3.13 billion last year, on a constant exchange rate basis.
The insurer also declared a second interim dividend of 18.89 cents per share, above the 16.29 cents apiece announced last year.
Leadership Transition
In January, the British insurer named Douglas Flint as its new chair to succeed Shriti Vadera, who is stepping down in May after five years in the role.
(Reporting by Roshan Thomas and Sneha Kumar in Bengaluru; Editing by Alan Barona)
