REG - Prudential PLC Prudential Fdg(Asia) - Prudential plc - 2024 Full Year Results

PrudentialAnnouncement

20/03/2025 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250320:nRST3777Ba&default-theme=true

RNS Number : 3777B  Prudential PLC  20 March 2025

 

NEWS RELEASE

20 March 2025

PRUDENTIAL PLC FULL YEAR 2024 RESULTS: BUILDING TOWARDS OUR 2027 STRATEGIC
OBJECTIVES

Prudential plc ("Prudential"; HKEX: 2378; LSE: PRU) today announced its
financial results for the year ended 31 December 2024.

Performance highlights on a constant exchange rate basis unless otherwise
stated

All new business profit growth rates in this report are reported on a constant
exchange rate basis, and excluding interest rate and other economic movements,
unless otherwise stated.

-   New business profit of $3,078 million, up 11 per cent. Including the
effects of interest rates and other economic movements, new business profit
was broadly flat. TEV new business profit also up 11 per cent.

-   Operating free surplus generated from in-force insurance and asset
management business of $2,642 million (2023: $2,706 million) was in line with
the shape of free surplus generation we set out from 2022 to 2027. We continue
to invest in improving our operating model, to build capabilities and create
value, including through addressing variances.

-   Adjusted operating profit before tax increased 10 per cent to $3,129
million. Adjusted operating profit after tax increased by 7 per cent to $2,582
million. Earnings per share based on adjusted operating profit was 89.7 cents
per share, representing an increase of 8 per cent on a consistent basis with
2023 (before the adjustment in respect of the non-controlling interest in our
Malaysia conventional life business).

-   Group EEV equity of $44.2 billion (2023: $45.3 billion on an actual
exchange rate basis) equivalent to 1,664 cents per share (2023: 1,643 cents
per share on an actual exchange rate basis).

-   Strong capital position with free surplus ratio of 234 per cent and GWS
shareholder surplus over GPCR of $15.9 billion, equivalent to a cover ratio of
280 per cent. Allowing for the share buyback programme completion, payment of
the 2024 second interim dividend and the commencement of the new bancassurance
arrangement in Indonesia, the free surplus ratio would be 204 per cent.

-   Completed $1,045 million (123 million shares) in share buybacks as at 14
March under our $2 billion programme announced in June 2024. This programme is
now expected to complete by the end of 2025 rather than our original guidance
of mid-2026.

-   2024 total dividend of 23.13 cents per share, up 13 per cent, with 2024
second interim dividend of 16.29 cents per share. Including share buybacks
total shareholder returns in FY24 were $1.4 billion.

Commenting on the results, CEO Anil Wadhwani, said: "In 2024 we made good
progress in executing on our strategy to improve our operational capabilities
and deliver growth. Our financial performance was in line with our guidance,
with new business profit up 11 per cent and operating free surplus generated
of $2,642 million. On a traditional embedded value (TEV) basis, which we will
be converting to from Q1 2025, new business profit also grew 11 per cent in
the year. The long-term growth trends inherent in our Asia and Africa markets
are reasserting themselves, creating significant opportunities for us.
Insurance penetration rates in Asia are low and there is continued, and
growing, demand for long term savings and protection products across our
markets, alongside a need for wealth management and retirement planning,
particularly in our higher income Asian markets.

"We are well positioned to capitalise on this growth opportunity. Our focus is
on writing quality new business alongside managing our in-force business and
improving variances by enhancing operational delivery and serving our
customers' needs. We have seen good progress in 2024 with improved cash
signatures for new business, growth in the number of active agents in the
second half and actions undertaken to improve our variances through
implementing better health claims management, improving persistency and
modernising our IT infrastructure to capture economies of scale.

"The dividend for 2024 is up 13 per cent on a per share basis and amounts to
just over $600 million. This is alongside the $785 million we returned to
shareholders in 2024 through our $2 billion share buyback programme, which we
have accelerated to complete by the end of 2025 ahead of our original mid-2026
schedule. We have also announced that we are evaluating a potential listing of
ICICI Prudential Asset Management Company Limited involving the partial
divestment of our shares in that company, subject to market conditions,
requisite approvals and other considerations. It is intended that following
the completion of such a divestment, the net proceeds would be returned to
shareholders. These initiatives underscore our disciplined capital management
based on the clear framework communicated in June 2024 and our focus on
improving shareholder returns. We intend to update you on our capital
management plans at our half year 2025 Results in August."

 Key summary financials                                                         2024 $m  2023 $m  Change on   Change on CER basis (and for NBP only excluding

                                                                                                  AER basis    interest rate and other economic movements)
 New business profit                                                            3,078    3,125    (2)%        11%
 Operating free surplus generated from in-force insurance and asset management  2,642    2,740    (4)%        (2)%
 business
 Group EEV equity*                                                              44,218   45,250   (2)%        n/a
 Adjusted operating profit before tax                                           3,129    2,893    8%          10%
 Adjusted operating profit after tax                                            2,582    2,449    5%          7%
 IFRS profit after tax                                                          2,415    1,712    41%         43%
 IFRS shareholders' equity*                                                     17,492   17,823   (2)%        n/a

* Balance sheet metrics are presented after deduction of non-controlling
interests. For 2024 non-controlling interests include the 49 per cent
non-controlling interest in our conventional life business in Malaysia.

Business Performance

We are writing quality new business with improved cash signatures alongside
improving operational delivery and better serving our customers' needs. The
investment in, and focus on, our customer, distribution, and health strategic
pillars is creating strong and stable platforms to support our future growth.

We are focused on building momentum in our agency channel by prioritising
quality recruitment and through improving agent activation and productivity
across all our markets. We are already seeing benefits, with our active agent
count being 67,000 in the second half of 2024, up from 63,000 in the first
half. Agency new business profit momentum improved in the second half of 2024,
being 4 per cent higher than the same period in the prior year, compared with
the (5) per cent decrease seen in the first half given the strong performance
in 2023 when the Hong Kong border re-opened. Overall, new business profit per
active agent grew 5 per cent. Key actions we are taking to drive the
performance of the agency channel are quality recruitment, including through
expanding our PRUVenture career development programme, partnering with
MDRT.org to enhance agent training and development and continuing to invest in
PRUForce, our agency digital platform, to improve our agents' productivity and
our operational efficiency.

Bancassurance new business profit increased by 31 per cent. New business
margins improved, before allowing for the effects of interest rate and other
economic movements, driven by a higher contribution to APE sales from Health
and Protection products, which now represent 8 per cent of our bancassurance
APE sales. 14 markets achieved double-digit year-on-year growth in new
business profit, led by Hong Kong, Singapore, and Taiwan. We also further
strengthened our bancassurance platform with new strategic partnerships in
Indonesia and by launching new wealth and health and protection products.

Health new business profit grew 11 per cent to $346 million, with growth led
by Hong Kong, Singapore, and Indonesia, supported by new healthcare products,
repricing initiatives, and further training and enablement of our agency
force. Creating a specialist health pillar and sharing best practice across
our health businesses has given us first-mover advantage on repricing, which
has helped offset the effects of medical inflation.

We have achieved top quartile relationship Net Promoter Scores (rNPS) in five
markets, improving from four markets in 2023, with all ten markets in which we
measure rNPS now ranked in the first or second quartile. This reflects strong
customer satisfaction, driven by continuous improvement in customer
experience, and enhancement of our customer digital servicing platform,
PRUServices, which we expect to have deployed in seven business units by the
end of the first quarter of 2025.

Eastspring Investments reported strong net inflows from third parties
(excluding money market funds and funds managed on behalf of M&G) of $6.5
billion (2023: $4.1 billion), contributing to total funds under management and
advice (FUM) at 31 December 2024 of $258 billion. The growth in FUM reflects
improved investment market conditions, better investment performance, and
strong in-house and external retail momentum. We see asset management as an
integrated part of the Prudential franchise.

Outlook

Our multi-channel and multi-growth model and our focus on operational delivery
positions us well for 2025. We remain focused on quality growth and consistent
execution of our transformation programme with 2025 marking the inflection
point for growth in our gross operating free surplus generation. We expect to
grow each of new business profit, basic earnings per share based on adjusted
operating profit and operating free surplus generated from in-force insurance
and asset management business by more than 10 per cent in 2025, all based on
constant exchange rates. Based on this, we expect the dividend per share to
increase by at least 10 per cent, in line with our dividend guidance.

Since announcing our strategy in 2023, we substantially reset our focus on
Customer, Distribution and Health. We have been building and modernising our
capabilities through targeted investments to address the historic under
investment, including digitising and harmonising our core operations and
infrastructure. Our investments are transforming our ways of working across
all aspects of our business. We believe during 2025 and into 2026, we will
further evolve our capabilities to a level that will position us strongly for
accelerated growth. Looking further ahead, based on our relentless focus on
writing quality new business, managing our in-force business and improving our
net experience variances, we remain confident in achieving our 2027 financial
and strategic objectives and generating sustainable value for our shareholders
and other stakeholders.

 

KEY SUMMARY FINANCIALS

Earnings

 Key summary financials                                                2024 $m  2023 $m  Change on AER basis  Change on CER basis
 Adjusted operating profit                                             3,129    2,893    8%                   10%
 Adjusted operating profit after tax                                   2,582    2,449    5%                   7%
 Basic earnings per share based on adjusted operating profit* (cents)  89.7     89.0     1%                   2%
 IFRS profit after tax                                                 2,415    1,712    41%                  43%
 Basic earnings per share based on IFRS profit after tax* (cents)      84.1     62.1     35%                  37%

Value

 Key summary financials                            2024 $m  2023 $m  Change on AER basis  Change on CER basis (and for NBP only excluding interest rate and other
                                                                                          economic movements)
 APE sales                                         6,202    5,876    6%                   7%
 Present value new business premiums (PVNBP)       30,612   28,737   7%                   8%
 New business profit (EEV)                         3,078    3,125    (2)%                 11%
 New business margin (% APE)                       50       53       (3)ppts              2ppts
 Life weighted premium income                      25,409   24,001   6%                   7%
 Group EEV equity*                                 44,218   45,250   (2)%                 n/a
 Group EEV equity per share (US$)*                 16.64    16.43    1%                   n/a
 EEV operating profit                              4,828    4,546    6%                   7%
 Operating return on embedded value (%)            12       12       -ppts                n/a
 Group EEV per share ($)*                          16.36    16.15    1%                   n/a
 Eastspring funds under management / advice ($bn)  258.0    237.1    9%                   n/a

Capital

 Key summary financials                                                         2024 $m  2023 $m  Change on AER basis
 IFRS shareholders' equity*                                                     17,492   17,823   (2)%
 IFRS shareholders' equity per share (US$)*                                     6.58     6.47     2%
 Operating return on IFRS shareholders' equity (%)*                             14       14       -ppts
 Adjusted total comprehensive equity* (#)                                       36,660   37,346   (2)%
 Operating free surplus generated from in-force insurance and asset management  2,642    2,740    (4)%
 business
 Free surplus excluding distribution rights and other intangibles*              8,604    8,518    1%
 Free surplus ratio (%)                                                         234      242      (8)ppts
 Group leverage ratio (Moody's basis) (%)                                       13       14       (1)ppts
 Shareholders GWS coverage ratio over GPCR (%)                                  280      295      (15)ppts
 Total GWS coverage ratio over GPCR (%)                                         203      197      6ppts
 Dividend per share (cents)                                                     23.13    20.47    13%

* Presented after deduction of non-controlling interests. For 2024
non-controlling interests include the 49 per cent non-controlling interest in
our conventional life business in Malaysia.

# Includes IFRS shareholders' equity and contractual service margin net of tax
and other adjustments. See "Definitions of Performance Metrics" in our Annual
Results Document for further information.

Notes

The summary financials presented above are the key financial metrics
Prudential's management use to assess and manage the performance and position
of the business. In addition to the metrics prepared in accordance with IFRS
standards - IFRS profit after tax and IFRS shareholders' equity - additional
metrics are prepared on alternative bases. The presentation of these key
metrics is not intended to be considered as a substitute for, or superior to,
financial information prepared and presented in accordance with IFRS
Standards. The definitions of the key metrics we use to discuss our
performance in this press release are set out in the "Definition of
performance metrics" section in our Annual Results Document, including, where
relevant, references to where these metrics are reconciled to the most
directly comparable IFRS measure.

 

Further information on actual and constant exchange rate bases is set out in
note A1 of the IFRS financial statement. All results are presented in US
dollars.

Annual Results Document

Prudential plc's results for the year ended 31 December 2024 are available to
view on the Prudential corporate website at
https://www.prudentialplc.com/investors and have been submitted in full
unedited text to the Financial Conduct Authority's National Storage Mechanism
and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism.

This document will also be available at
http://www.rns-pdf.londonstockexchange.com/rns/3777B_1-2025-3-19.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3777B_1-2025-3-19.pdf)

We will announce our Full Year 2024 Results on Thursday, 20 March HKT |
Wednesday, 19 March 2025 UKT & ET.

Please note the impact of time zones on the announcement date for your
particular location.

Please find key details below:

Announcement publication

-   Hong Kong Stock Exchange & Financial Media: 6.00am HKT, Thursday 20
March | 10.00pm UKT - 6.00pm ET, Wednesday 19 March

-   London Stock Exchange: 3:00pm HKT | 7:00am UKT | 3.00am ET, Thursday 20
March

Pre-Recorded Results Presentation

-   A pre-recorded presentation for analysts and investors will be available
on-demand from 6.00am HKT, on Thursday 20 March | 10.00pm UKT - 6.00pm ET, on
Wednesday 19 March via this link:
https://www.investis-live.com/prudential/67a38013bd0e0d0014d7b5de/japeht

-   A copy of the presentation script will also be available on Prudential
plc's website at the same time.

Virtual Q&A Event for Analysts & Investors

Date: Thursday, 20 March 2025

Time: 4.30pm HKT | 8.30am UKT | 4.30am ET

How to Join:

Listen to the audio webcast online & Submit Questions:
https://www.investis-live.com/prudential/67a382b40164ff000f7d4206/lqpmk

The audio webcast will be available for replay using the same link.

Dial-in to Listen & Ask Questions:

-   Dial-in Numbers:

-   Hong Kong: +852 5803 3413

-   Hong Kong Freephone: +852 800 908 350

-   China: +86 21 8036 9402

-   UK & International: +44 (0) 20 3936 2999

-   UK Freephone: 0800 358 1035

-   Global dial-in numbers:
https://www.netroadshow.com/events/global-numbers?confId=77645

-   Access Code: 218834

-   Please join 15 minutes before the start time (lines open at 4.00pm HKT |
8.00am UKT | 4.00am ET).

Post-Event Access

Transcript: Available on Tuesday, 25 March on Prudential's results centre
webpage.

Playback Facility:

-   Dial: +44 (0) 20 3936 3001

-   Replay Code: 279410

-   Available from 9.00pm HKT | 1:00pm UKT | 9.00am ET on 20 March until
6.59am HKT on Friday, 4 April | 11.59pm UKT - 5.59pm ET on Thursday, 3 April.

For any questions, please contact us at the Investor Relations team using the
details below.

 

 Media                             Investors/analysts
 Simon Kutner  +44 (0)7581 023260  Patrick Bowes       +852 2918 5468
 Sonia Tsang   +852 5580 7525      William Elderkin    +44 (0)20 3977 9215
                                   Darwin Lam          +852 2918 6348

About Prudential plc

Prudential plc provides life and health insurance and asset management in 24
markets across Asia and Africa. Prudential's mission is to be the most trusted
partner and protector for this generation and generations to come, by
providing simple and accessible financial and health solutions. The business
has dual primary listings on the Stock Exchange of Hong Kong (2378) and the
London Stock Exchange (PRU). It also has a secondary listing on the Singapore
Stock Exchange (K6S) and a listing on the New York Stock Exchange (PUK) in the
form of American Depositary Receipts. It is a constituent of the Hang Seng
Composite Index and is also included for trading in the Shenzhen-Hong Kong
Stock Connect programme and the Shanghai-Hong Kong Stock Connect programme.

Prudential is not affiliated in any manner with Prudential Financial, Inc. a
company whose principal place of business is in the United States of America,
nor with The Prudential Assurance Company Limited, a subsidiary of M&G
plc, a company incorporated in the United Kingdom.

https://www.prudentialplc.com/

Forward-looking statements

This document contains 'forward-looking statements' with respect to certain of
Prudential's (and its wholly and jointly owned businesses') plans and its
goals and expectations relating to future financial condition, performance,
results, strategy and objectives. Statements that are not historical facts,
including statements about Prudential's (and its wholly and jointly owned
businesses') beliefs and expectations and including, without limitation,
commitments, ambitions and targets, including those related to sustainability
matters, and statements containing the words 'may', 'will', 'should', 'could',
'continue', 'aims', 'estimates', 'projects', 'believes', 'intends', 'expects',
'plans', 'seeks' and 'anticipates', and words of similar meaning and the
negatives of such words, are forward-looking statements. These statements are
based on plans, estimates and projections as at the time they are made, and
therefore undue reliance should not be placed on them. By their nature, all
forward-looking statements involve risk and uncertainty.

A number of important factors could cause actual future financial condition or
performance or other indicated results to differ materially from those
indicated in any forward-looking statement. Such factors include, but are not
limited to:

-   current and future market conditions, including fluctuations in interest
rates and exchange rates, inflation (including resulting interest rate rises),
sustained high or low interest rate environments, the escalation of
protectionist policies, the performance of financial and credit markets
generally and the impact of economic uncertainty, slowdown or contraction
(including as a result of the emergence, continuation and consequences of
adverse geopolitical conditions, such as political instability, unrest, war,
the ongoing conflicts between Russia and Ukraine and in the Middle East, and
increasing global or diplomatic tensions related to China and/or the US, as
well as resulting economic sanctions and export and currency controls), which
may also impact policyholder behaviour and reduce product affordability;

-   asset valuation impacts from sustainability related considerations;

-   derivative instruments not effectively mitigating any exposures;

-   global political uncertainties, including the potential for increased
friction in cross-border trade and the exercise of laws, regulations and
executive powers to restrict trade, financial transactions, capital movements
and/or investment;

-   the policies and actions of regulatory authorities, including, in
particular, the policies and actions of the Hong Kong Insurance Authority, as
Prudential's Group-wide supervisor, as well as the degree and pace of
regulatory changes and new government initiatives generally;

-   the impact on Prudential of systemic risk and other group supervision
policy standards adopted by the International Association of Insurance
Supervisors, given Prudential's designation as an Internationally Active
Insurance Group;

-   the physical, social, morbidity/health and financial impacts of climate
change and global health crises (including pandemics), which may impact
Prudential's business, investments, operations and its duties owed to
customers;

-   legal, policy and regulatory developments in response to climate change
and broader sustainability-related issues, including the development of
regulations and standards and interpretations such as those relating to
sustainability reporting, disclosures and product labelling and their
interpretations (which may conflict and create misrepresentation risks);

-   the collective ability of governments, policymakers, the Group, industry
and other stakeholders to implement and adhere to commitments on mitigation of
climate change and broader sustainability-related issues effectively
(including not appropriately considering the interests of all Prudential's
stakeholders or failing to maintain high standards of corporate governance and
responsible business practices), and the challenges presented by conflicting
national approaches in this regard;

-   the impact of competition and fast-paced technological change;

-   the effect on Prudential's business and results from mortality and
morbidity trends, lapse rates and policy renewal rates;

-   the timing, impact and other uncertainties of future acquisitions or
combinations within relevant industries;

-   the impact of internal transformation projects and other strategic
actions failing to meet their objectives or adversely impacting the Group's
operations or employees;

-   the availability and effectiveness of reinsurance for Prudential's
businesses;

-   the risk that Prudential's operational resilience (or that of its
suppliers and partners) may prove to be inadequate, including in relation to
operational disruption due to external events;

-   disruption to the availability, confidentiality or integrity of
Prudential's information technology, digital systems and data (or those of its
suppliers and partners), including the risk of cyber-attacks and challenges in
integrating AI tools, which may result in financial loss, business disruption
and/or loss of customer services and data and harm to Prudential's reputation;

-   the increased non-financial and financial risks and uncertainties
associated with operating joint ventures with independent partners;

-   the impact of changes in capital, solvency standards, accounting
standards or relevant regulatory frameworks, and tax and other legislation and
regulations in the jurisdictions in which Prudential and its affiliates
operate; and

-   the impact of legal and regulatory actions, investigations and disputes.

These factors are not exhaustive. Prudential operates in a continually
changing business environment with new risks emerging from time to time that
it may be unable to predict or that it currently does not expect to have a
material adverse effect on its business. In addition, these and other
important factors may, for example, result in changes to assumptions used for
determining results of operations or re-estimations of reserves for future
policy benefits. Further discussion of these and other important factors that
could cause actual future financial condition or performance to differ,
possibly materially, from those anticipated in Prudential's forward-looking
statements can be found under the 'Risk Factors' heading of this document.

Any forward-looking statements contained in this document speak only as of the
date on which they are made. Prudential expressly disclaims any obligation to
revise or update any of the forward-looking statements contained in this
document or any other forward-looking statements it may make, whether as a
result of future events, new information or otherwise except as required
pursuant to the UK Prospectus Rules, the UK Listing Rules, the UK Disclosure
Guidance and Transparency Rules, the Hong Kong Listing Rules, the SGX-ST
Listing Rules or other applicable laws and regulations.

Prudential may also make or disclose written and/or oral forward-looking
statements in reports filed with or furnished to the US Securities and
Exchange Commission, the UK Financial Conduct Authority, the Hong Kong Stock
Exchange and other regulatory authorities, as well as in its annual report and
accounts to shareholders, periodic financial reports to shareholders, proxy
statements, offering circulars, registration statements, prospectuses,
prospectus supplements, press releases and other written materials and in oral
statements made by directors, officers or employees of Prudential to third
parties, including financial analysts. All such forward-looking statements are
qualified in their entirety by reference to the factors discussed under the
'Risk Factors' heading of this document.

Cautionary statements

This document does not constitute or form part of any offer or invitation to
purchase, acquire, subscribe for, sell, dispose of or issue, or any
solicitation of any offer to purchase, acquire, subscribe for, sell or dispose
of, any securities in any jurisdiction nor shall it (or any part of it) or the
fact of its distribution, form the basis of, or be relied on in connection
with, any contract therefor.

 

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  FR SFLFAUEISEED