Prudential posts 8% rise in first-half new business profit, expands share buyback
It increased its 2026 share repurchase programme by US$300 million to US$1.5 billion
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INSURER Prudential reported first-half new business profit largely in line with market expectations on Thursday (Aug 27), driven by strong growth in Hong Kong, Malaysia and Singapore, and expanded its ongoing share repurchase programme by US$300 million.
New business profit, a measure of the lifetime profits expected from policies sold, rose to US$1.38 billion for the six months ended Jun 30, 8 per cent higher than last year on a constant exchange rate basis, just shy of the Visible Alpha consensus estimate of US$1.39 billion.
In Hong Kong, new business profit rose 8 per cent on a constant exchange rate (CER) basis to US$581 million in the first half, while Malaysia posted a 46 per cent increase to US$70 million.
In mainland China, new business profit slipped 4 per cent on a CER basis to US$159 million, hurt by a shift in sales towards lower-profit products and regulatory changes affecting bank distribution costs.
Excluding the Chinese mainland, new business profit grew by 10 per cent on a CER basis.
Earlier this month, shares of Hong Kong insurers fell on reports that China had begun levying a 20 per cent personal income tax on returns from Hong Kong insurance policies, fuelling concerns over Beijing’s crackdown on cross-border investment channels and its impact on demand from mainland Chinese customers.
“While it is too early to assess whether recent commentary regarding the enforcement of existing rules will affect the buying behaviour of Chinese mainland customers, we remain confident in the structural growth prospects of our Hong Kong business,” the insurer said.
The London- and Hong Kong-listed insurer also announced an interim dividend of 8.88 cents per share, and increased its 2026 share repurchase programme by US$300 million to US$1.5 billion. REUTERS
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