REG - Prudential PLC Prudential Fdg(Asia) - Prudential PLC - 2025 Half-year Results
27/08/2025 07:00
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RNS Number : 7444W Prudential PLC 27 August 2025
NEWS RELEASE
27 August 2025
PRUDENTIAL PLC HALF YEAR 2025 RESULTS: Delivering growth and capital returns
to shareholders through consistent execution
Prudential plc ("Prudential"; HKEX: 2378; LSE: PRU) today announced its
financial results for the six months ended 30 June 2025 along with updated
guidance on capital returns.
Performance highlights on a constant exchange rate basis unless otherwise
stated are as follows:
- New business profit on a traditional embedded value (TEV) basis was up 12
per cent to $1,260 million.
- Operating free surplus generated from in-force insurance and asset
management business was up 14 per cent to $1,560 million.
- Adjusted operating profit before tax increased 6 per cent to $1,644
million. Adjusted operating profit after tax increased by 7 per cent to $1,366
million. Earnings per share based on adjusted operating profit was 49.3 cents
per share, an increase of 12 per cent.
- Group TEV equity of $35.0 billion, equivalent to 1,354 cents per share.
- Free surplus ratio of 221 per cent (31 December 2024: 234 per cent) and
GWS shareholder surplus over GPCR of $16.2 billion, equivalent to a coverage
ratio of 267 per cent.
- Repurchased 72 million shares for $711 million from 1 January to 30 June
2025, expect to complete current programme by year end.
- First interim dividend increased by 13 per cent to 7.71 cents per share
(2024: 6.84 cents per share on an AER basis).
- Capital management update: Move to a total return orientation out of
annual flow of capital generation:
- Guidance of more than 10 per cent growth in ordinary dividend per share
for each of 2025-2027.
- Additional returns of capital: $500 million share buyback in 2026 and
$600 million in 2027.
- Over the period 2024-2027 expect to have returned to shareholders more
than $5 billion including the above returns and existing $2 billion share
buyback programme out of excess free surplus.
- In addition, we intend to return initial net proceeds from the potential
IPO of ICICI Prudential Asset Management Company Limited ('IPAMC').
Commenting on the results, CEO Anil Wadhwani, said: "We are pleased with our
strong performance in the first half of 2025, delivering double-digit growth
across our key metrics in line with the guidance we gave earlier in the year.
We have reached the inflection point in our capital generation, enabling us to
update our capital management programme and increase shareholder returns,
which validates our business model and its ability to generate sustainable
cash returns. Reflecting our strategic progress and investments in the growth
drivers of the business, we are confident we will carry this momentum into the
second half and beyond, keeping us firmly on track to achieve our 2027
financial objectives."
Half Year Change on
Summary performance financials (before non-controlling interests) 2025 $m 2024 $m AER basis CER basis
New business profit 1,260 1,121 12% 12%
Operating free surplus generated from in-force insurance and asset management 1,560 1,370 14% 14%
business
Adjusted operating profit before tax 1,644 1,544 6% 6%
Adjusted operating profit after tax 1,366 1,271 7% 7%
IFRS profit after tax 1,359 182 n/a n/a
30 Jun 2025 31 Dec 2024
Balance sheet financials (after non-controlling interests) Total Per share Total Per share
Group TEV equity $35.0bn 1,354¢ $34.3bn 1,289¢
IFRS shareholders' equity $18.1bn 701¢ $17.5bn 658¢
Key summary financials
Earnings
Half year Change on Full Year
Key summary financials 2025 $m 2024 $m AER basis CER basis 2024 $m
Adjusted operating profit 1,644 1,544 6% 6% 3,129
Adjusted operating profit after tax 1,366 1,271 7% 7% 2,582
Basic earnings per share based on adjusted operating profit (cents) 49.3¢ 43.8¢ 13% 12% 89.7¢
IFRS profit after tax 1,359 182 n/a n/a 2,415
Basic earnings per share based on IFRS profit after tax (cents) 49.2¢ 4.4¢ n/a n/a 84.1¢
Value
Half year Change on Full Year
Key summary financials 2025 $m 2024 $m AER basis CER Basis 2024 $m
APE sales 3,288 3,111 6% 5% 6,202
Present value new business premiums (PVNBP) 14,886 13,527 10% 9% 29,034
New business profit (TEV) 1,260 1,121 12% 12% 2,464
New business margin (% APE) 38 36 2ppts 2ppts 40
Life weighted premium income 13,667 12,385 10% 9% 25,409
TEV operating profit 2,240 1,913 17% 16% 4,095
Operating return on embedded value (%) 15 13 n/a n/a 14
Half Year Full Year Change on
2025 $m 2024 $m AER basis
Group TEV equity 35,000 34,267 2%
Group TEV equity per share (US$) 13.54 12.89 5%
Group TEV per share ($) 13.24 12.62 5%
Eastspring funds under management / advice ($bn) 274.9 247.4 11%
Capital
Half Year Change on Full Year
Key summary financials 2025 $m 2024 $m AER basis CER basis 2024 $m
Operating free surplus generated from in-force insurance and asset management 1,560 1,370 14% 14% 2,666
business
Operating return on IFRS shareholders' equity (%) 14 14 - n/a 14
Dividend per share (cents) 7.71¢ 6.84¢ 13% n/a 23.13¢
Half Year Full Year Change on
2025 $m 2024 $m AER basis
IFRS shareholders' equity 18,119 17,492 4%
IFRS shareholders' equity per share (US$) 7.01 6.58 6%
Adjusted total comprehensive equity* 38,613 36,660 5%
Free surplus excluding distribution rights and other intangibles 8,520 8,604 (1)%
Free surplus ratio (%) 221 234 (13)ppts
Group leverage ratio (Moody's basis) (%) 14 13 1ppts
Shareholders GWS coverage ratio over GPCR (%) 267 280 (13)ppts
Total GWS coverage ratio over GPCR (%) 200 203 (3)ppts
* Includes IFRS shareholders' equity and contractual service margin
net of tax and other adjustments. See "Definitions of Performance Metrics" in
our half year 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 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 half year results document, including,
where relevant, references to where these metrics are reconciled to the most
directly comparable IFRS measure. All metrics used by management to assess
performance (along with IFRS profit after tax) are presented before deduction
of the amount attributable to non-controlling interest. This presentation is
applied consistently throughout this announcement.
Balance sheet metrics are presented net of non-controlling interests.
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.
Half year results document
Prudential's half year 2025 results document:
- is available to view on the Prudential website at
www.prudentialplc.com/investors
- is also available at
http://www.rns-pdf.londonstockexchange.com/rns/7444W_1-2025-8-26.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7444W_1-2025-8-26.pdf)
- has been submitted in full unedited text to the Financial Conduct
Authority's National Storage Mechanism which will shortly make it available
for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
Announcement publication
Hong Kong London New York
Hong Kong Stock Exchange & UK Financial Media Wednesday, 27 August 2025 Tuesday, 26 August 2025 Tuesday, 26 August 2025
6.00 am HKT 11.00 pm UKT 6.00 pm ET
London Stock Exchange Wednesday, 27 August 2025 Wednesday, 27 August 2025 Wednesday, 27 August 2025
2.00 pm HKT 7.00am UKT 2.00 am ET
Please note the impact of time zones on the announcement date for your
particular location.
Pre-Recorded Results Presentation
- A pre-recorded presentation for analysts and investors will be available
on-demand from 6.00am HKT on Wednesday 27 August | 11.00pm UKT - 6.00pm ET on
Tuesday 26 August via this link:
https://www.investis-live.com/prudential/686552d56c0d660016f96697/lafrt
- A copy of the presentation script will also be available on Prudential's
website at the same time.
Virtual Q&A Event for Analysts & Investors
Date: Wednesday, 27 August 2025
Time: 4.30pm HKT | 9.30am UKT | 4.30am ET
How to Join:
Listen to the audio webcast online & Submit Questions:
https://www.investis-live.com/prudential/68654ecd6c0d660016f9662f/mdgt
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) 203936 2999
- UK Freephone: 0800 041 8829
- Global dial-in numbers:
https://www.netroadshow.com/events/global-numbers?confId=85226
- Access Code: 796641
- Please join 15 minutes before the start time (lines open at 4.00pm HKT |
9.00am UKT | 4.00am ET).
Post-Event Access
Transcript: Available on Monday, 1 September on Prudential's results centre
webpage.
Playback Facility:
- Dial-in: +44 (0) 20 3936 3001
- Replay Code: 470231
- Available from 9.00pm HKT | 2:00pm UKT | 9.00am ET on 27 August until
6.59am HKT on Thursday, 11 September| 11.59pm UKT - 6.59pm ET on Wednesday, 10
September.
For any questions, please contact the Media or Investor Relations team using
the details below.
Media
Simon Kutner +44 (0)7581 023260
Sonia Tsang +852 5580 7525
Investors/analysts
Patrick Bowes +852 2918 5468
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/
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
(including ESG and climate-related) matters, and statements containing the
words 'may', 'will', 'should', 'continue', 'aims', 'estimates', 'projects',
'believes', 'intends', 'expects', 'plans', 'seeks' and 'anticipates', and
words of similar meaning, 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 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),
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 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 (including ESG and climate-related) 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);
- 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);
- 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 our half year
results 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
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, 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 our half year
results 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 therefore.
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