Prudential's New Business Profit Grows Amid Strong Demand in Various Markets

Prudential Plc's new business profit increased in the first half of the year, driven by strong demand in markets such as Hong Kong and Indonesia. CEO Anil Wadhwani attributes the growth to the company's robust business model and capital strength, positioning it for expansion in all key markets.

British insurer Prudential Plc reported a significant increase in new business profit for the first half of 2025, driven by robust growth in key markets such as Hong Kong and Indonesia. The company's new business profit grew by 12 per cent to US$1.26 billion [1], a substantial improvement from the previous year.

Prudential's CEO, Anil Wadhwani, attributed the growth to the company's strong business model and capital strength. According to the company's statement, 13 out of its 19 life insurance markets experienced growth in new business profit during the period. Indonesia, in particular, saw a 34 per cent increase in new business profit, while Hong Kong reported an overall 16 per cent growth [1].

In Hong Kong, Prudential's largest profit-generating region, sales to both mainland Chinese visitors and local customers contributed to the growth. Profit from new policies sold to local customers jumped 17 per cent, while sales to mainland Chinese visitors increased by 15 per cent [1].

Prudential's net profit surged more than tenfold to US$1.28 billion, compared to an 87 per cent decrease during the same period last year. The company's operating profit rose by 6 per cent to US$1.64 billion. Additionally, Prudential announced a dividend of 7.71 US cents per share, an increase of 13 per cent from the previous year, and plans to deliver annual dividend growth of more than 10 per cent for the next two years [1].

Prudential's expansion efforts also include the launch of its first international branch at GIFT City, Gandhinagar, under the International Financial Services Centres Authority's regulations. This move aims to attract global capital and align with ICICI Prudential's strategy to serve as a bridge between international investors and India's financial ecosystem [2].

Prudential Hong Kong Limited (PHKL) reported its fourth straight quarter of double-digit growth in Annualised Premium Equivalent (APE) sales, reaching USD1.09 billion, a 13 per cent increase year-on-year. New Business Profit (NBP) rose by 16 per cent year-on-year [3].

References:
[1] https://uk.finance.yahoo.com/news/prudentials-business-profit-jumps-12-093000302.html
[2] https://www.hubbis.com/news/icici-prudential-launches-first-international-branch-at-gift-city-to-attract-global-capital
[3] https://www.marketscreener.com/news/prudential-hong-kong-reports-ape-growth-ce7c50dcd98bf524