Prudential reported a 10% increase in adjusted operating profit for the first half of 2026, supported by an 8% growth in new business profit and a 15% rise in operating free surplus generation. While new business profit of $1,384 million fell short of the $1.45 billion analyst consensus, the company achieved margin expansion of 2 percentage points to 40%, driven by a higher-quality product mix. Growth was particularly strong in ASEAN markets (up 13%) and India, helping offset regulatory headwinds in the Chinese Mainland bancassurance channel. Management demonstrated confidence in the capital position by adding $300 million to its 2026 share buyback program and raising the interim dividend by 15%.
Key Highlights
- New business profit reached $1,384 million, an 8% increase on a constant exchange rate basis, though below the $1.45 billion estimate.
- APE sales of $3,428 million missed the $3.82 billion estimate, impacted by regulatory changes in the Chinese Mainland bancassurance sector.
- Adjusted operating profit after tax grew 10% to $1,523 million, while the company increased its 2026 share buyback program by $0.3 billion to a total of $1.5 billion.