REG - Prudential PLC Prudential Fdg(Asia) - Prudential Plc - Q1 2026 Performance Update

PrudentialAnnouncement

29/04/2026 07:00

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RNS Number : 2826C  Prudential PLC  29 April 2026

NEWS RELEASE

29 April 2026

 

 

PRUDENTIAL PLC Q1 2026 BUSINESS PERFORMANCE UPDATE

 

Another quarter of consistent double‑digit new business profit growth

 

Performance highlights on a constant exchange rate basis for the three months
ended 31 March 2026 (Q1):

 

·      Q1 new business profit was up 10 per cent compared with the prior
year to $686 million with growth across all segments.

 

·      Q1 APE sales grew 6 per cent to $1,823 million over the same
period.

 

·      New business margin increased 2 percentage points.

 

Commenting on the results, CEO Anil Wadhwani said: "In the first three months
of 2026, we once again demonstrated our continued delivery of double‑digit
new business profit growth. Performance was broad‑based across segments,
with higher APE sales and improved new business margins, reflecting our
disciplined execution and continued focus on driving high-quality growth.

 

"The quarter reinforced the strength of our multi-channel, multi-market
business model, with resilient performance despite ongoing market volatility
and geopolitical uncertainty. Similar to the outcome in full‑year 2025,
bancassurance delivered strong year‑on‑year growth in both volumes and
margins, with continued traction across key markets. We continue to progress
our agency transformation programme with a focus on quality recruitment and
actions to improve agent productivity, including the rollout of enhanced
digital tools. The agency channel continued to grow new business profit in the
first quarter.

 

"Through disciplined value creation, continued strengthening of our
distribution and a focus on enhancing customer experience we are well
positioned to capture structural growth opportunities across Asia and Africa.
We remain confident in delivering double‑digit growth across our key
financial metrics in 2026 and achieving our 2027 financial objectives."

 

APE new business sales (APE sales) and TEV new business profit (NBP)

 

               Three months ended 31 March
               2026    2025 CER  Change CER  2025 AER  Change AER
 NBP $m        686     625       10%         608       13%
 APE Sales $m  1,823   1,725     6%          1,677     9%
 NBP margin    38%     36%       2 ppts      36%       2 ppts

Comparatives on a constant exchange rate basis (CER) and actual exchange rate
basis (AER).

 

Market highlights for the three months ended 31 March 2026

(New business profit and APE sales growth rates are both on a constant
currency basis. See "Definitions of Performance Metrics" below for more
details. Discussions of changes in metrics refer to comparisons of the first
quarter of 2026 to the first quarter of 2025 unless otherwise stated.)

 

In the first quarter of the year, we saw higher new business profit growth in
each of our segments with Hong Kong, Mainland China and Malaysia delivering
double‑digit growth.

 

Hong Kong saw new business profit growth across both agency and bancassurance
channels and delivered an expansion in margins, with a higher proportion of
health and protection APE sales and repricing actions. Our Mainland China
joint venture, CITIC Prudential Life, continued the strong APE sales momentum
seen in the second half of 2025. As expected, the on-going focus on
participating business, as we rebalance the product portfolio, led to a
moderation in profit margins. Malaysia new business profit growth was driven
by agency and while volumes were lower in our bancassurance business, margins
increased as we further optimised our product portfolio.

 

Indonesia saw modest new business profit growth following on from the strong
performance seen in the prior period. The bancassurance channel grew
double‑digit as we continued to build our partnership with BSI, while in the
agency channel we remain focussed on quality recruitment to drive activation
levels. In Singapore, we again saw good growth in APE sales particularly
through the agency channel, reflecting customer demand for savings and wealth
products. As in 2025, these shifts in product mix have reduced margins,
leading to more modest growth in new business profit. We are taking targeted
actions to broaden our health and protection offerings and to address
previously announced changes in co-payment requirements on certain health
insurance plans.

 

Growth in our "Growth markets and other" segment was led by our business in
Thailand, which saw continuing strong demand for savings products, and our
associate in India, ICICI Prudential Life. While overall performance in Taiwan
moderated after the strong growth delivered in recent periods, we are pleased
with progress in the broker channel.

 

Overall, Eastspring saw net inflows in the period, led by positive flows from
the Group's insurance business, demonstrating the scale and continuity
provided by our integration of life insurance and asset management
capabilities. Eastspring's funds under management (FUM) were $268.9 billion at
31 March 2026 (31 December 2025: $277.7 billion), with the reduction largely
driven by adverse market and foreign exchange movements given the market
volatility in the period. Eastspring's FUM includes contributions from both
its wholly owned and joint venture businesses.

 

We have a multi-channel, multi-market business model which leads to a high
degree of diversification. We continue to monitor the impact on consumers of
the current geopolitical events, acknowledging that some of our smaller ASEAN
businesses are relatively more exposed to the risk of higher inflation from
higher energy prices. This could impact consumer sentiment and buying
behaviours in the future.

 

Consistent with our disciplined capital return framework, we launched a $1.2
billion buyback in January to be executed during the course of 2026,
comprising $500 million of recurring capital returns and $700 million of net
proceeds from the initial public offering of ICICI Prudential Asset Management
Company. During the first quarter of 2026 we repurchased approximately 20
million shares for a total consideration of $312 million.

 

Contact:

 

 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
 Janice Wong    +852 6188 6381       Ming Hau             +44(0)20 3977 9293
                                     Bosco Cheung         +852 2918 5499
                                     Tianjiao Yu          +852 2918 5487

 

About Prudential plc

 

Prudential provides life and health insurance and asset management in Greater
China, ASEAN, India 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 (HKEX: 2378) and
the London Stock Exchange (LSE: PRU). It also has a secondary listing on the
Singapore Stock Exchange (SGX: K6S) and a listing on the New York Stock
Exchange (NYSE: 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/ (https://www.prudentialplc.com/)

 

Metrics presented

 

This business performance update provides information on the trading and sales
development of the Group in the three months ended 31 March 2026. This update
focuses on annual premium equivalent (APE) and new business profit (NBP),
which are key metrics used by the Group's management to assess and manage the
development and growth of the business. APE sales are provided as an
indicative volume measure of transactions undertaken in the reporting period
that have the potential to generate profits for shareholders. NBP is measured
in accordance with our Traditional Embedded Value (TEV) methodology and
reflects the value of future profit streams which are not fully captured in
shareholders' equity in the year of sale under IFRS. Under this methodology,
new business profit is determined using long-term economic assumptions at the
start of the year and on operating assumptions at the start of the quarter
being reported on. More details on the Group's TEV methodology is contained in
the TEV basis results section of the Group's Annual Report 2025.

 

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. Further information about these metrics including a
reconciliation of TEV shareholders' equity at 31 December 2025 to the most
directly comparable IFRS measure can be found in the Group's Annual Report
2025.

 

Definitions of Performance Metrics

 

Annual premium equivalent (APE) sales

A measure of new business activity that comprises the aggregate of annualised
regular premiums and one-tenth of single premiums on new business written
during the period for all insurance products.

 

Eastspring total funds under management or advice

Total funds under management or advice including external funds under
management, money market funds, funds managed on behalf of M&G plc and
internal funds under management or advice.

 

New business profit

Presented on a post-tax basis, on business sold in the period calculated in
accordance with Group TEV methodology.

 

Traditional Embedded Value (TEV)

Financial results that are prepared on a supplementary basis to the Group's
IFRS results and are a way of measuring the current value to shareholders of
the future profits from life business written based on a set of assumptions.
Our TEV methodology is set out in the Group's Annual Report 2025.

 

Key financial metrics

Our three key financial metrics are 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.

 

2027 financial objectives

Our 2027 financial objectives are: growing new business profit over the period
2022 to 2027 at a compound annual growth rate of 15-20 per cent; and
delivering in 2027 at least $4.4 billion of operating free surplus generation
from in-force insurance and asset management business. The objectives assume
exchange rates at December 2022 and are based on regulatory and solvency
regimes applicable across the Group at the time the objectives were set. The
objectives assume that the same TEV and free surplus methodology will be
applicable over the period and no material change to the economic assumptions
will occur.

 

Forward-looking statements

 

This announcement contains 'forward-looking statements' with respect to
certain of Prudential's (and its wholly- and jointly-owned businesses')
current plans, 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 words such as 'prospects',
'goals', 'may', 'will', 'should', 'could', 'continue', 'aims', 'estimates',
'projects', 'believes', 'intends', 'expects', 'plans', 'targets', 'commits',
'seeks' and 'anticipates', and words of similar meaning and the negatives of
such words, are forward-looking statements. These statements are based on
plans, assumptions, 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 conditions,
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, sustained inflationary pressure (including
resulting interest rate increases), volatile or 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;

-       the impact of global political uncertainties, geopolitical
instability, armed conflicts, and heightened geopolitical tensions, including
increased friction in cross-border trade and the exercise of laws, regulations
and executive powers to restrict or control trade, financial transactions,
capital movements and/or investment, as well as related sanctions, trade
restrictions, and other governmental or regulatory measures, which may also
impact policyholder behaviour and reduce product affordability;

-        asset valuation impacts arising from sustainability related
considerations;

-        derivative instruments not effectively mitigating any
exposures;

-        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), as
well as other catastrophic events, both natural and human-made, 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 and interpretation of regulations, laws and standards relating to
sustainability reporting, disclosures and product labelling (which may be
inconsistent across jurisdictions and give rise to conflicts of interpretation
between approaches, misrepresentation or compliance risks) on the one hand,
and those which may seek to limit the influence of sustainability
considerations on corporate activity on the other;

-         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 approaches in this regard;

-         the impact of competition and technological change,
including the pace of innovation, adoption, and changing customer demands;

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

-         the timing, impact, and realisation of intended benefits, if
any, 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 in a timely manner, or at
all, 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 to
prevent, respond to or recover from operational disruption arising from
external events;

-         disruption to the availability, confidentiality or integrity
of Prudential's information technology, digital systems and data, including
hardware and software (or those of its affiliates, suppliers, service
providers and partners), including the risk of cyber-attacks, other data,
information or security breaches and challenges in integrating AI tools and
the related security and privacy considerations, 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 conditions or performance to differ,
possibly materially, from those anticipated in Prudential's forward-looking
statements can be found under the 'Risk Factors' heading of Prudential's 2025
Annual Report (or any US equivalent filed with the US Securities and Exchange
Commission), available on its website at www.prudentialplc.com
(https://www.prudentialplc.com/en/) .

 

Any forward-looking statements contained in this announcement speak only as of
the date on which they are made or in the case of any document incorporated by
reference, the date of the document. Prudential expressly disclaims any
obligation to revise or update any of the forward-looking statements contained
in this announcement 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's Public Offers and Admissions to Trading
Regulations (2024), the UK Prospectus Rules: Admission to Trading on a
Regulated Market, 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. Unless expressly stated otherwise, no
statement contained or referred to in this announcement is intended to be a
profit forecast or profit estimate.

 

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, the Securities and Futures Commission of Hong Kong and other
regulatory authorities, as well as in its annual report and accounts, other
periodic financial reports, 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 Prudential's 2025
Annual Report (or any US equivalent filed with the US Securities and Exchange
Commission), available on its website at www.prudentialplc.com
(http://www.prudentialplc.com/) .

 

Cautionary statements

This announcement 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.

 

NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED
STATES OF AMERICA

 

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