Prudential plc reported an 8% year-over-year increase in new business profit to $1.4 billion for the first half of 2026, alongside a 17% rise in operating earnings per share to 58.4 cents. Gross operating free surplus generation increased 15% to $1.8 billion, while net free surplus surged 41% to $1.2 billion, according to slides presented on August 27, 2026.
The insurer's embedded value per share, excluding goodwill, reached $15.27, up 5% from year-end 2025, with a return on embedded value of 15%. Prudential maintained a free surplus ratio of 209% at June 30, 2026, or 200% on a proforma basis excluding remaining asset management IPO proceeds.
India operations were a key focus, with Prudential completing the acquisition of a 75% controlling stake in Bharti Life Insurance. The India health business launched in August 2026 following receipt of a Standalone Health Insurance licence. Strategic partnerships include access to 450 million customers via Bharti Airtel and relationships with 8,500 high-net-worth clients managing over $70 billion in assets through 360 ONE. In Malaysia, Prudential increased its ownership in the conventional life business to 70% by acquiring an additional 19% stake for approximately $380 million.
Hong Kong delivered 8% new business profit growth, driven by a 22% surge in domestic business, while Chinese Mainland operations saw a 4% decline in new business profit and margin compression from 43% to 34%. ASEAN markets collectively posted 13% new business profit growth, with Malaysia up 46%, Singapore 9%, and Indonesia 55% in bancassurance new business profit. Africa generated 19% annual premium equivalent growth, maintaining top-five positions in three of five markets.
Agency operations produced $749 million in new business profit, up 5%, though active agents declined 4% year-over-year. Bancassurance new business profit increased 13% overall, or 18% excluding Chinese Mainland, reaching $586 million. Health and protection new business profit grew 15% to $139 million, accounting for 33% of the total product mix.
Prudential's digital transformation initiatives advanced, with 70% of architecture aligned digitally by 2026 and release times over 50% faster than legacy systems. AI productivity tools exceeded 95% enterprise adoption, with PRUAction AI boosting productivity by 13% for users in Singapore. Digital interactions via PRUServices and the mobile app doubled, while the Customer Engagement Platform contributed over $330 million in annual premium equivalent.
Eastspring Investments reported a 20% rise in operating profit after tax to $141 million, with funds under management reaching $291 billion, up 5%, and net flows of $5.7 billion. The cost-income ratio stood at 55%, and 74% of funds outperformed three-year benchmarks.
Prudential increased its 2026 share buyback program by roughly $0.3 billion to a total of $1.5 billion, funded by Eastspring asset management IPO proceeds. The company targets more than $7 billion in total capital returns to shareholders between 2024 and 2027, alongside more than 10% annual dividend per share growth for 2026 and 2027. Capital solvency ratios remained robust, with a GWS shareholder cover ratio at 268% and a total cover ratio at 195%.
