Prudential plc (LON: PRU, NYSE: PUK) saw its shares slip 1.94% in pre‑market trading to $27.75 on August 27 after releasing its first‑half 2026 results.
Operating earnings per share climbed 17% to 58.4 cents. New business profit (NBP) reached $1.4 bn, up 8% year‑on‑year and 10% when Chinese Mainland operations are excluded. Hong Kong NBP grew 8% (domestic business +22%, visitor business –2%), while Chinese Mainland NBP fell 4%. ASEAN markets collectively posted a 13% NBP increase, driven by Malaysia (+46%), Indonesia bancassurance (+55%) and Singapore (+9%). Health and protection NBP rose 15% to $139 m.
The new‑business margin expanded two percentage points to 40%, with agency margins up two points and bancassurance margins up one point. Hong Kong’s NBP margin improved from 50% to 57%, whereas Chinese Mainland margins compressed to 34% from 43% a year earlier, with a recovery to around 40% expected.
Gross operating free surplus generation (OFSG) rose 15% to $1.8 bn, while net OFSG surged 41% to $1.2 bn. Free cash flow for the period was $0.9 bn. The company now expects gross OFSG to exceed $4.4 bn by 2027. The free‑surplus ratio stood at 209% at June‑30‑2026, above the 175‑200% target range, with a GWS shareholder cover ratio of 268% and a total cover ratio of 195%. Leverage was 14% and S&P assigned an ‘AA’ financial‑strength rating.
Prudential increased its share‑buyback programme by roughly $0.3 bn, bringing the total to $1.5 bn. Capital returns to shareholders are targeted at more than $7 bn between 2024 and 2027. The interim dividend was raised 15%, and the company aims for annual dividend‑per‑share growth of over 10% in 2026 and 2027.
Strategically, Prudential acquired a 75% controlling stake in Bharti Life Insurance in India and purchased an additional 19% of its conventional life business in Malaysia for about $380 m, lifting its ownership to 70% and cutting the non‑controlling interest from 49% to 30%.
Distribution metrics showed agency NBP of $749 m, up 5%, with active agents falling 4% to 55,000 but NBP per active agent rising 9%. Bancassurance NBP reached $586 m, up 13% overall and 18% excluding Chinese Mainland. Health and protection products accounted for 33% of the total mix, and APE from PRUVenture agents in Hong Kong and Malaysia grew 36%.
Eastspring Investments, Prudential’s asset‑management arm, reported operating profit after tax of $141 m, a 20% increase. Funds under management grew 5% to $291 bn, supported by net inflows of $5.7 bn. The cost‑income ratio was 55%, and 74% of funds outperformed their three‑year benchmarks. Internal FUM represented 46% of total AUM, with an additional 17% under advice.
Management highlighted India as “the largest structural life growth opportunity in Asia ex‑Chinese Mainland.”
