Prudential expects $8.9 billion shareholder returns, posts 12% rise in new business profit
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The London and Hong Kong dual-listed company expects to return more than $8.9 billion to shareholders over the 2024 to 2027 period.
PHOTO: ST FILE
- Prudential's annual new business profit rose 12%, driven by strong performance in Asia and Africa markets.
- The company plans to return over US$7 billion to shareholders from 2024-2027, including a US$1.3 billion return in 2027.
- CEO Anil Wadhwani expects "double-digit growth trajectory" and declared a higher dividend of 18.89 cents per share.
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BENGALURU - Insurer Prudential posted a 12 per cent rise in annual new business profit on March 18, helped by resilient momentum in its Asia and Africa markets.
The London and Hong Kong dual-listed company said it now expects to return more than US$7 billion (S$8.9 billion) to shareholders over the 2024 to 2027 period, including a US$1.3 billion capital return in 2027.
The insurer said its new business profit on a traditional embedded value (TEV) basis was US$2.78 billion for the year ended Dec 31, compared with US$2.46 billion in fiscal 2024, up 12 per cent on a constant exchange rate basis.
“We remain constructive on the shift toward buybacks and shareholder returns as a key theme for 2026 and beyond, particularly as some companies transition from a period of heavy capex in 2025 toward a greater focus on earnings resilience and capital discipline,” said Mr Marc Jocum, senior product and investment strategist at Global X ETFs.
New business profit in its key Hong Kong unit rose 12 per cent, driven by stronger sales and margins across local and Mainland Chinese customers.
“We carry the momentum of 2025 into 2026 and are confident in our double-digit growth trajectory across our key metrics,” chief executive Anil Wadhwani said.
At the group’s Mainland China joint venture, CITIC Prudential Life, new business profit rose 27 per cent, supported by strong annual premium equivalent (APE) sales growth in the second half.
The business expanded its agency force and strengthened its partnership with CITIC, focusing on top outlets to boost productivity, while maintaining disciplined risk management.
Its Indonesian segment posted 11 per cent growth in new business profit, driven by margin expansion on a shift to higher-margin products.
In fiscal 2025, adjusted operating profit before tax increased to US$3.31 billion from US$3.13 billion in 2025, on a constant exchange rate basis.
The insurer also declared a second interim dividend of 18.89 cents per share, above the 16.29 cents apiece announced in 2025.
In January, the British insurer named Mr Douglas Flint as its new chairman to succeed Ms Shriti Vadera, who is stepping down in May after five years in the role. REUTERS
