Prudential plc reported a 17% increase in adjusted operating profit after tax for the first half of 2026, driven by strong performance across its multi-market and multi-channel platform. The insurer posted new business profit of $1.4 billion, up 8% year-over-year, while gross operating free surplus generation rose 15% to $1.8 billion.
Group embedded value increased 6% to $40.1 billion, supported by a 41% jump in group-level capital generation to $1.2 billion. The group’s regulatory capital ratio stood at 268% on a shareholder basis, while its free surplus ratio reached 209% at period end, exceeding the 175%-200% operating range. Adjusted operating profit per share grew 17%, and the effective tax rate was 16%.
The company raised its 2026 share buyback program by $300 million to $1.5 billion, part of a broader shareholder return commitment exceeding $7 billion between 2024 and 2027. Total shareholder returns in 2026 are expected to surpass $2 billion, including $1 billion returned in the first half via dividends and buybacks. The dividend yield stands at 2.53%, with Prudential maintaining payouts for 35 consecutive years and increasing dividends for four straight years, including a 15% hike in the first half.
Regional performance varied, with bancassurance contributing 42% of first-half new business profit, up 13% year-over-year excluding the Chinese mainland. The agency channel accounted for 53% of new business profit, growing 5%. Customer retention reached 94% across the platform, with Hong Kong’s domestic business achieving a 99% retention rate. Eastspring, Prudential’s asset management arm, reported a 20% rise in operating profit after tax on a like-for-like basis, with funds under management increasing 5% to $291 billion.
In the Chinese mainland, annual premium equivalent sales grew 21% in the first half, though new business profit declined 4% due to a shift toward participating products. Bancassurance volumes in the region contracted in Q2 following new expense regulations. Hong Kong’s new business profit rose 8%, with domestic customer segment growth of 22%. ASEAN markets posted a 13% increase in new business profit, led by Malaysia’s 46% growth and Singapore’s double-digit volume expansion.
Prudential reaffirmed its 2026 guidance for double-digit growth in new business profit, gross operating free surplus generation, adjusted earnings per share, and dividend per share. Full-year new business profit in the Chinese mainland is expected to align with 2025 levels, while Hong Kong targets double-digit growth. Long-term objectives include gross operating free surplus generation exceeding $4.4 billion in 2027 and a 15%-20% compound annual growth rate in new business profit from 2022 to 2027.
Chief Executive Officer Anil Wadhwani highlighted the company’s focus on high-quality growth and resilient capital generation, while Chief Financial Officer Ben Bulmer noted the return to positive underlying operating variances as a key milestone.
