Prudential PLC Posts Higher New Business Profit in First Half

By Megan Cheah

Prudential PLC's new business profit for the first half of the year rose, boosted by broad-based growth across most segments.

New business profit increased 8% on a constant exchange rate basis from a year earlier to $1.38 billion, the insurance and investment company said Thursday.

This was attributed to its strategic focus on product mix and growth across most segments, but moderated by its mainland China division, which was affected by regulatory changes requiring the implementation of prescriptive bancassurance expense controls.

Its IFRS-adjusted operating profit before tax was $1.81 billion in the first six months ended June, up from $1.64 billion in the previous year.

Annual premium equivalent sales--a key metric for the industry--rose 4% on year, to $3.43 billion.

The company remains "firmly focused" on delivering its 2026 guidance, said Chief Executive Anil Wadhwani. This includes double-digit growth in its new business profit and adjusted earnings per share.

It also remains on track to achieving its 2027 financial objectives, such as growing its new business profit at a compound annual growth rate of 15% to 20% over 2022 to 2027.

Prudential PLC plans to add around $300 million to its 2026 share-buyback program worth $1.2 billion. The addition is subject to the completion and net amounts received from the partial sale of its stake in ICICI Prudential Asset Management, aimed at helping the Indian joint venture maintain its minimum public float requirement.

The results come amid uncertainty about the insurer's mainland China visitor business in Hong Kong, which has weighed on its stock. Shares in Hong Kong last ended 1.1% lower, taking year-to-date losses to more than 7%. The insurer, which is also listed in London, is domiciled in the U.K., but its business is focused on Asia and Africa.

Hong Kong insurers have typically benefited from ambiguities in Chinese tax rules, but recent media reports suggest that authorities in China are increasing their scrutiny of returns from overseas insurance policies.

China Galaxy International Securities analyst Michael Chang said concerns over the mainland Chinese visitor segment appear overstated. For instance, a potential 20% tax imposed on income from Hong Kong insurance policies is unlikely to materially weigh on demand from customers in this business, as alternative offshore financial assets are also subject to tax, he wrote in a recent note.

In its results, Prudential PLC said the underlying demand drivers for its products in Hong Kong remain strong. "While it is too early to assess whether recent commentary regarding the enforcement of existing rules will affect the buying behaviour of [mainland Chinese] customers, we remain confident in the structural growth prospects of our Hong Kong business," it said.

Write to Megan Cheah at megan.cheah@wsj.com

(END) Dow Jones Newswires

August 26, 2026 19:19 ET (23:19 GMT)