Prudential plc reported a 17% year-on-year increase in earnings per share for the first half of 2026, alongside an 8% rise in new business profit and a 41% jump in net operating free surplus generation. The London-based insurer’s gross operating free surplus generation grew 15% over the same period, while its first interim dividend per share rose 15%.
Embedded value per share, excluding goodwill, reached $15.27, or £11.50, with a return on embedded value of 15%. The company’s return on equity stood at 21% over the last twelve months as of the fourth quarter of 2025. Prudential’s free surplus ratio stood at 209% as of June 30, 2026, exceeding its target range of 175% to 200%, though this figure drops to 200% when excluding remaining AMC IPO proceeds.
Regional performance highlighted growth in Hong Kong, where domestic new business profit surged 22%, now accounting for half of the market’s new business profit. Persistency in Hong Kong remained at 99%. In China, regulatory shifts and a shift toward participating products pressured margins, with full-year 2026 margins expected to decline to 40% from 43% in 2025. ASEAN markets delivered a 13% increase in new business profit, while India saw progress following Prudential’s acquisition of Bharti Life Insurance and the launch of health policies in August.
The insurer maintained its dividend track record with 35 consecutive years of payments and four consecutive years of increases. Prudential reaffirmed its full-year 2026 guidance for double-digit growth across key metrics, including new business profit, EPS, dividends, and operating free surplus generation.
Capital returns remained a priority, with a $1.5 billion program for 2026, including $1.2 billion from an ongoing buyback launched in January and an additional $0.3 billion from Eastspring/AMC IPO proceeds. Total targeted capital returns to shareholders between 2024 and 2027 exceed $7 billion. Prudential expects gross operating free surplus generation to reach $4.4 billion in 2027, with capability investment programs totaling between $300 million and $350 million in 2026.
Prudential’s shares slipped 1.94% in premarket trading to $27.75, following a 52-week range of $24.61 to $34.03. The company trades at a P/E ratio of 9.02 and a PEG ratio of 0.11, with a dividend yield of 2.53% based on the current share price.
