Insurer Prudential posts slight rise in third-quarter new business profit (updated)
UPDATE 1-Insurer Prudential posts slight rise in third-quarter new business profit Adds details from bullet 2 onwards
Nov 5 (Reuters) - Asia-focused insurer Prudential 2378.HK PRU.L reported a marginal increase in third-quarter new business profit on Thursday, as repricing actions in Hong Kong lifted margins and helped offset a slowdown in its mainland China business.
Here are more details:
New business profit, which reflects the lifetime profits expected from policies sold, rose 1% in the quarter ended September 30 to $709 million from a year earlier. The figure was calculated on a traditional embedded value and constant exchange rate basis
Quarterly new business profit margin expanded to 44% from 41% a year earlier, while annual premium equivalent sales declined 6%
Hong Kong, Prudential's largest profit contributor, logged double-digit growth in quarterly new business profit, supported by higher margins and strong demand from local customers
The insurer said the stronger demand from Hong Kong residents offset slower conversion of prospective sales from some mainland Chinese visitors
In August, reports had emerged that China had begun imposing a 20% personal income tax on returns from Hong Kong insurance policies, raising concerns about demand from mainland Chinese customers and broader restrictions on cross-border investment channels
New business profit from CITIC Prudential Life, its mainland China joint venture, declined significantly after new rules limiting how much insurers can pay banks to sell policies slowed sales through bank branches
Prudential said it expects fiscal 2026 new business profit in mainland China to be 10% to 15% lower than in 2025
In ASEAN, new business profits from Malaysia grew, while those from Singapore and Indonesia declined
(Reporting by Shruti Agarwal and Kumar Tanishk in Bengaluru; Editing by Leroy Leo and Shailesh Kuber)
((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))