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RNS Number : 4009F  Prudential PLC  30 October 2025

NEWS RELEASE

30 October 2025

 

PRUDENTIAL PLC Q3 BUSINESS PERFORMANCE UPDATE

 

Continued double-digit growth with Q3 new business profit growing by 13 per
cent

 

Performance highlights on a constant exchange rate basis for the three months
ended 30 September 2025 (Q3):

 

·      Q3 new business profit was $705 million, up 13 per cent compared
with the equivalent quarter in the prior year.

 

·      Q3 APE sales grew 10 per cent to $1,716 million over the same
period.

 

·      New business margin increased 1 percentage point.

 

Commenting on the results, CEO Anil Wadhwani said: "The momentum of our
delivery continues with another quarter of double-digit growth in Q3. This
demonstrates the growing strength of our execution resulting in greater
consistency of our performance across quarters. Volumes grew and new business
margin improved as we continue to prioritise writing high-quality new
business. Growth in new business profit through our bancassurance channel and
agency channels continued at similar levels to the first half.

 

"We continue to take actions to strengthen our agency force, with a particular
focus on ASEAN markets where we see an opportunity to build on the agency new
business profit growth achieved in the markets of Greater China. Focused
initiatives cover aspects such as improving agent quality, increasing
activation and enhancing productivity. Alongside these impactful initiatives,
we are also driving quality recruitment through our specialist recruitment
programme, PruVenture, which produces recruits that have shown higher
productivity than other new recruits.

 

"In bancassurance we delivered another quarter of strong growth with good
engagement from our partners. Margins continued to be higher than the prior
year as our ongoing focus on the quality of new business through this channel
delivered results.

 

"We are pleased with the consistency of our overall performance so far this
year, which puts us firmly on track to achieve our 2025 guidance and our 2027
financial objectives."

 

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

 

               Three months ended 30 September                          Nine months ended 30 September
               2025     2024 CER  Change CER  2024 AER  Change AER      2025     2024 CER  Change CER  2024 AER  Change AER
 NBP $m        705      626       13%         616       14%             1,964    1,756     12%         1,736     13%
 APE Sales $m  1,716    1,564     10%         1,527     12%             5,002    4,699     6%          4,638     8%
 NBP margin    41%      40%       1 ppt       40%       1 ppt           39%      37%       2 ppts      37%       2 ppts

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

 

Market highlights for the three months ended 30 September 2025

(New business profit, which has been prepared on a Traditional Embedded Value
basis, and APE sales are both on a constant currency basis. See "Definitions
of Performance Metrics" below for more details.)

 

In Hong Kong, we delivered another quarter of double-digit new business profit
growth in Q3 when compared to the equivalent period in the prior year. Both
agency and bancassurance channels delivered growth in new business profit,
with margins improving through a targeted shift towards health and protection
products. This shift resulted in a growing policy count partially offset by
lower case size.

 

In Mainland China, our joint venture, CITIC Prudential Life, delivered strong
growth momentum in the third quarter, with double-digit volume and new
business profit growth in both agency and bancassurance channels, capitalising
on opportunities in advance of upcoming market-wide repricing changes. Our
partnership with CITIC Bank continues to be strengthened and supports new
business growth. We remain optimistic about prospects for our Mainland China
business.

 

In Indonesia, volumes were affected by a period of civil unrest which,
combined with expected normalisation following the high growth in recent
quarters, resulted in lower new business profit in Q3 compared with a strong
prior year comparator. New business profit margins increased in Q3 compared
with the first half of 2025 as we continued to benefit from the shift in sales
mix to higher margin traditional products. Our bancassurance channel continued
to see gathering momentum in our partnership with BSI, Indonesia's largest
Syariah bank.

 

New business profit in Malaysia grew in Q3 2025 compared with the same period
in 2024, driven by higher volumes. Malaysia continued its sequential
quarter-on-quarter growth in new business profit from Q2 into Q3, as it began
to recover from the market-wide disruption to the agency channel in the first
half.

 

In the three months to 30 September our Singapore business delivered new
business profit growth compared with the same period in the prior year driven
by double-digit growth in agency APE sales, following strong demand for
savings products. We continue to build our Prudential Financial Advisors
distribution channel and to develop tailored wealth offerings for the high net
worth markets.

 

Our "Growth markets and other" segment delivered double-digit growth in new
business profit in the third quarter, continuing the growth recorded in the
first half. Growth was broad based, with 9 out of 13 markets improving new
business profit in Q3 when compared with the same period last year.

 

Eastspring funds under management or advice (FUM) at the end of the third
quarter were $286.4 billion (30 June 2025: $274.9 billion). FUM development in
the three months to 30 September was supported both by net inflows (excluding
those into money market funds) of $3.4 billion, from both the Group's
insurance businesses and third parties, and positive market appreciation.
Eastspring's FUM includes contributions from both its wholly owned and joint
venture businesses.

 

On 17 October 2025, Prudential Corporation Asia Limited (PCAL) was classified
as a Domestic Systemically Important Insurer (D-SII) by the Insurance
Authority Hong Kong. PCAL is the senior regulated entity within the group.
This classification has no effect on our business operations or capital
management plans.

 

During the quarter 1 July to 30 September 2025 we repurchased a further circa
20 million shares, for $258 million, bringing the total number of shares
purchased under the programme to 184 million, for a total consideration of
$1,754 million (excluding costs). We continue to expect to complete our
current $2 billion share buyback programme by the end of the year.

 

As announced on 8 July 2025, a draft prospectus for an Initial Public Offering
("IPO") of ICICI Prudential Asset Management Company Limited ("IPAMC") has
been filed with the Securities and Exchange Board of India and the Indian
stock exchanges. We continue to actively work on the proposed IPO of IPAMC.

 

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
                                   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/

 

Metrics presented

 

This business performance update provides information on the trading and sales
development of the Group in the three months and nine months ended 30
September 2025. 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 Half Year
Financial 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 30 June 2025 to the most
directly comparable IFRS measure can be found in the Group's Half Year
Financial 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 our 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 Half Year Financial Report 2025.

 

Forward-looking statements

 

This announcement 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 (including ESG and climate-related) matters, and statements
containing words such as '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 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 performance
of financial and credit markets generally and the impact of economic
uncertainty, slowdown or contraction (including as a result of the
Russia-Ukraine conflict, conflict in the Middle East, and related or other
geopolitical tensions and conflicts, and related sanctions and other
measures), which may also impact policyholder behaviour and reduce product
affordability;

-       asset valuation impacts from the transition to a lower carbon
economy;

-       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 investments;

-       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, laws and standards and interpretations such as
those relating to sustainability (including ESG and climate-related)
reporting, disclosures and product labelling (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);

-        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 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 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 cyberattack or other data,
information or security breaches;

-        the increased non-financial and financial risks and
uncertainties associated with operating joint ventures with independent
partners, particularly where joint ventures are not controlled by Prudential;

-        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 Prudential's Half
Year Financial Report 2025, available on Prudential's website at
www.prudentialplc.com (http://www.prudentialplc.com) .

 

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
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 Regulation 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, 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 Half
Year Financial Report 2025

 

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
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