Company Reports

For half-year 2026, Prudential has delivered a mixed set of numbers. They look a little light in some areas versus the company's 2027 objectives and our forecasts. Yet, we believe that in the most important areas, the business is ahead where it matters, particularly gross OFSG and the dividend.

After selling its UK and European businesses and its US Jackson National Life Insurance subsidiary, Prudential now focuses only on life and health insurance in Asia and Africa and runs one of the largest investment managers in those regions.

Prudential has announced it has agreed to acquire a 75% stake in Indian life insurer Bharti Life Insurance from Bharti Life Ventures and 360 One Asset Management.

In full-year 2025 results, Prudential outlined its intention to deliver double-digit growth across its three core metrics: new business profit, adjusted operating profit before tax, and operating free surplus generation from in-force and asset management. While in line, today's update lacks energy.

After selling its UK and European businesses and its US Jackson National Life Insurance subsidiary, Prudential now focuses only on life and health insurance in Asia and Africa and runs one of the largest investment managers in those regions.

In its full-year 2024 results release, Prudential set 2025 guidance for 10% or higher growth in new business profit, adjusted operating profit per share, gross operating free surplus generation, and dividends per share. The business has delivered ahead in all cases.

Following its decision to increase ownership in Prudential Assurance Malaysia Berhad, Prudential has announced it has increased its ownership in the PAMB holding company by 19% from 51% to 70%, on Jan. 30.

Prudential has announced Douglas Flint will succeed Shriti Vadera as board chair, following the company's annual general meeting to be held on May 28, 2026. This follows Shriti's scheduled retirement after six years.

In its business update for the first nine months, Prudential has reported new business profit of $1,964 million, a 13% actual exchange-rate rise.

Having announced more than a couple of changes to its capital allocation over the past year, and incorporating those changes into our forecasts, we still believe Prudential is well-positioned.

After selling its UK and European businesses and its US Jackson National Life Insurance subsidiary, Prudential now focuses only on life and health insurance in Asia and Africa and runs one of the largest investment management companies in those regions.

In Prudential's interim earnings announcement for first-half 2025, the business looks on track to meet or exceed its 10% growth guidance for full-year 2025. The business also looks broadly on track to meet its targets for the current strategic plan that runs to 2027.

In our look into European dividends for companies and stocks we prefer for 2025 earnings, we like Admiral, Munich, and Scor, but we prefer Scor over Munich based on its price/fair value ratio. We also think there is potential in Ageas.

With the divestment of Prudential PLC's UK and European operations, followed by the sale of its Jackson business in North America, Prudential is now a life and health insurer that is fully focussed on Asia and Africa, with one of the region’s largest asset management businesses.

In Prudential's business update for the first quarter of 2025 the company has recorded a slight lag in sales and growth in new business profit that is slightly ahead of its target for this year.

With the divestment of Prudential PLC's UK and European operations, followed by the sale of its Jackson business in North America, Prudential is now a life and health insurer that is fully focussed on Asia and Africa, with one of the region’s largest asset management businesses.

We think Prudential reported mixed results for 2024. The $2.3 billion net profit is ahead of the $2.2 billion we forecast and a good rise year on year. Further, the full-year dividend has been raised to $0.2313 per share. This is ahead of our $0.2095 estimate and a double-digit percentage increase.

The share price of Prudential plc reacted badly to the news in the media, including Reuters, that President-elect Donald Trump is expected to nominate Republican Florida Senator Marco Rubio as secretary of state. For years, Rubio has been a critic of China and his appointment would put even more pressure on the relationship. The discussed 60% tariffs on Chinese imports will, of course, stretch that relationship. Tariffs imposed under the previous Trump administration have led to a reduction in the China-US trade deficit, but there is still a deficit. While we do not think the growth of Prudential is tied to China's gross domestic product, the rest of Asia will be hit by lower China GDP. China has recently announced it is sticking to its GDP target of 5% for 2024. However, we think the share price of Prudential currently indicates the firm can only grow at 4% for the next 10 years. First, we don’t think the growth of Prudential is tied to Chinese GDP; second, we believe other key Asian countries are coming out of a trough in terms of economic productivity; and last, we don’t believe Prudential is broadly tied to low- to mid-single-digit growth in GDP. We maintain our GBX 1,200 per-share fair value estimate and believe the firm is significantly undervalued at these levels currently. We also maintain our no moat rating.

Prudential plc has reported a reasonable trading update, with a 9% rise in annual premium equivalent sales to $4.3 billion for the first nine months. Sales growth was higher in the third quarter than in the first half, and slightly better in Prudential’s bancassurance channel, China, Hong Kong, and Thailand. In the China joint venture, sales over the first nine months declined by 6%. However, in the third quarter, China joint venture sales grew by 36%, balanced across both agency and bancassurance channels. The $176 million cash injection into Citic-Prudential Life stands. In the third quarter, sales to domestic customers in Hong Kong have been most pronounced, and bancassurance sales. Sales to mainland China visitors in the third quarter have pretty much been flat. In Singapore, annual premium equivalent sales grew by 14% for the first nine months, 6% in the third three months.

Prudential plc has announced a partnership with Bank Syariah Indonesia, which means Prudential will become the Shariah life insurance provider to BSI starting in early 2025. With this partnership, Prudential will broaden its distribution platform, which has predominantly relied on agents in this country. According to BSI, it is Indonesia’s largest Shariah bank with around 19.6 million customers and over 1,000 branches. Other deals here include United Overseas Bank's recent acquisition of Citigroup's consumer banking business in Indonesia. We maintain our fair value estimate and no moat rating.