Prudential plc (“Prudential”; HKEX: 2378; LSE: PRU) today announced its financial results for the six months ended 30 June 2026 along with updated guidance on capital returns.
Performance highlights on a constant exchange rate basis unless otherwise stated are as follows:
– Driving quality growth and strong capital generation:
– New business profit grew 8 per cent, to $1,384 million, with margins expanding 2 percentage points to 40 per cent.
– Operating free surplus generated from in-force insurance and asset management (Gross OFSG) business was up 15 per cent to $1,791 million.
– Adjusted operating profit before tax increased 9 per cent to $1,812 million. Adjusted operating profit after tax increased by 10 per cent to
$1,523 million. Earnings per share based on adjusted operating profit (Adjusted EPS) was 58.4 cents per share, an increase of 17 per cent.
– Strong growth in EV:
– Group TEV equity of $39.1 billion (31 December 2025 $37.8 billion on an actual exchange rate basis), equivalent to 1,557 cents per share and operating return on embedded value of 15 per cent.
– Investing for long-term growth while increasing shareholder returns:
– The Group continued to invest in long-term growth, including increased ownership stake in Malaysia life business to 70 per cent and strategically repositioning its presence in India through the agreed acquisition of a 75 per cent stake in Bharti Life alongside its separate standalone health entity commencing operations in the third quarter of 2026.
– The Group retained a strong capital position, with a free surplus ratio of 209 per cent (31 December 2025: 221 per cent) and GWS coverage ratio of 268 per cent.
– Prudential is adding circa $0.3 billion* to the previously announced $1.2 billion 2026 share buyback programme.
– Total capital returns to shareholders were $1.0 billion in the first half of 2026.
– First interim dividend increased by 15 per cent to 8.88 cents per share (2025: 7.71 cents per share on an AER basis).
Commenting on the results, CEO Anil Wadhwani, said: "Prudential continues to execute with discipline to generate long-term shareholder value. We remain focused on delivering long-term savings, health and protection solutions in our markets, meeting customer needs and supporting the societal aims of regulators and governments alike.
"In the first half of 2026, we delivered high-quality growth, margin expansion and strong capital generation – reflecting our focus on writing profitable new business across our diversified, multi-market and multi-channel platform. We are building the capabilities that will shape the next phase of growth – using technology, operations and AI to deepen customer engagement, improve service and drive efficiencies. The strength of our performance is giving us the capacity to invest in long-term growth opportunities while increasing returns to shareholders. Today, we have announced a further circa $0.3 billion* buyback to be completed by 18 December 2026. This is in addition to the $1.2 billion and $1.3 billion, already indicated for 2026 and 2027 respectively.
"We remain firmly focused on the delivery of our FY26 guidance of double-digit growth in new business profit, Gross OFSG and Adjusted EPS, together with double-digit dividend per share growth, and on achieving our 2027 financial objectives."
*Subject to the completion and net amounts received, post tax and transaction costs, from the sale of part of our stake in ICICI Prudential Asset Management Company as we progress towards meeting the initial free float requirement.
Strategic highlights for 2026
Prudential delivered solid high-quality growth in the first half of 2026, reflecting the strength of its diversified multi-market and multi-channel business model and disciplined execution of its strategy. New business profit increased by 8 per cent, with margins expanding by 2 percentage points to 40 per cent, driven by our continued strategic focus on a high quality product mix.
The Group continued to execute against its strategic priorities across agency, bancassurance, health, customer and technology-enabled operations. Bancassurance remained a strong growth engine, agency transformation continued to progress, evidenced by improving agent productivity, and investment in digitisation, analytics and AI is strengthening customer engagement, productivity and operational efficiency. Together, these actions are creating a more scalable platform for consistent, sustainable growth.
In the Chinese Mainland, new business profit performance was affected by regulatory change requiring the implementation of prescriptive bancassurance expense controls. In Hong Kong, we continued to demonstrate the quality of our agency and bancassurance channels, with margin expansion and strong customer retention. Elsewhere in ASEAN, we grew new business profit by 13 per cent, and collectively India and Africa grew their combined APE sales by 13 per cent. In asset management, we grew operating profit after tax by 20 per cent on a like-for-like basis, allowing for the reduction in our holding in ICICI Prudential Asset Management Company Limited.
The Group’s strong capital generation gives it the flexibility to invest for long-term growth while growing returns to shareholders. During the period, Prudential made targeted investments to strengthen its long-term growth platform, increasing its ownership of its Malaysia conventional business to 70 per cent and strategically repositioning India through the agreed acquisition of a 75 per cent controlling stake in Bharti Life. It commenced operations in its standalone Indian health business in the third quarter of 2026. These developments increase the Group’s exposure to structurally attractive markets where Prudential can deploy its capabilities across life, health, distribution, technology and capital management.
Looking ahead to the second half of 2026, Hong Kong and our Chinese Mainland business face high prior year comparators in July and August, although these begin to ease significantly from September.
In the Chinese Mainland, the business is adjusting to recent bancassurance-related regulatory changes, and we expect new business profits for full year 2026 to be similar to those of 2025.
In Hong Kong, the underlying drivers of demand for our products remain strong, supported by the continued attractiveness and refresh of our propositions. While it is too early to assess whether recent commentary regarding the enforcement of existing rules will affect the buying behaviour of Chinese Mainland customers, we remain confident in the structural growth prospects of our Hong Kong business, a belief supported by our most recent survey of such customers. We have successfully adjusted to regulatory developments in the past and would expect any impact to be transitory.
We remain firmly focused on the delivery of our FY26 guidance of double-digit growth in new business profit, Gross OFSG and Adjusted EPS, together
