Prudential PLC Acquires Shares, Boosts Life and Health Insurance Business

Prudential plc, a financial services group, has acquired back shares. The company is organized around two main areas of activity: life and health insurance, which accounts for 96.9% of revenues, and asset management through its Eastspring division, which manages USD 258 billion in funds under management. The revenue distribution is primarily across Hong Kong, Singapore, Malaysia, Indonesia, and other countries.

Prudential plc, a leading financial services group, has reported robust financial results for the first half of 2025, highlighting its commitment to shareholder returns and capital management. The company, organized around life and health insurance and asset management, has seen significant growth across its key metrics.

Prudential's new business profit on a traditional embedded value (TEV) basis increased by 12% to $1,260 million, while operating free surplus generated from in-force insurance and asset management business rose by 14% to $1,560 million. Adjusted operating profit before tax and after tax also showed strong growth, increasing by 6% and 7%, respectively, to $1,644 million and $1,366 million. Earnings per share based on adjusted operating profit rose to 49.3 cents per share, an increase of 12% [1].

The company's capital management strategy has been a key driver of these results. Prudential has moved towards a total return orientation, with guidance for more than 10% growth in ordinary dividend per share for each of 2025-2027. The company has also announced additional returns of capital, including a $500 million share buyback in 2026 and $600 million in 2027, in addition to the existing $2 billion share buyback programme. Over the period 2024-2027, Prudential expects to return more than $5 billion to shareholders, including potential proceeds from the IPO of ICICI Prudential Asset Management Company Limited (IPAMC) [1].

Prudential's CEO, Anil Wadhwani, commented on the results, stating, "We are pleased with our strong performance in the first half of 2025, delivering double-digit growth across our key metrics in line with the guidance we gave earlier in the year. We have reached the inflection point in our capital generation, enabling us to update our capital management programme and increase shareholder returns, which validates our business model and its ability to generate sustainable cash returns" [1].

The company's balance sheet also showed strength, with Group TEV equity of $35.0 billion, equivalent to 1,354 cents per share. The free surplus ratio of 221% and GWS shareholder surplus over GPCR of $16.2 billion, equivalent to a coverage ratio of 267%, demonstrate Prudential's robust financial position [1].

Prudential's revenue distribution is primarily across Hong Kong, Singapore, Malaysia, Indonesia, and other countries, with life and health insurance accounting for 96.9% of revenues. The company's asset management division, Eastspring, manages USD 258 billion in funds under management [1].

References:
[1] Prudential plc. (2025). Prudential plc Half Year 2025 Results. Retrieved from https://www.prudentialplc.com/en/news-and-insights/all-news/news-releases/2025/27-08-2025