Prudential plc has reported its financial results for the six months ending June 30, alongside revised guidance on capital returns.
The company’s new business profit, measured on a traditional embedded value (TEV) basis, rose by 12% to US$1,260 million. Operating free surplus generated from in-force insurance and asset management activities increased by 14% to US$1,560 million.
Adjusted operating profit before tax reached US$1,644 million, up 6%, while adjusted operating profit after tax was US$1,366 million, a 7% increase. Earnings per share based on adjusted operating profit stood at 49.3 cents, representing a 12% rise.
Group TEV equity was reported at US$35.0 billion, or 1,354 cents per share. The free surplus ratio at the end of the period was 221%, compared to 234% at December 31, 2024. GWS shareholder surplus over GPCR was US$16.2 billion, equating to a coverage ratio of 267%.
Between January 1 and June 30, Prudential repurchased 72 million shares for US$711 million and expects to complete the current buyback programme by the end of the year. The first interim dividend was raised by 13% to 7.71 cents per share, compared to 6.84 cents per share in 2024.
The company has updated its capital management approach, shifting to a total return orientation based on the annual flow of capital generation. Prudential has provided guidance for ordinary dividend per share growth of more than 10% for each year from 2025 to 2027. Additional capital returns are planned, including a US$500 million share buyback in 2026 and US$600 million in 2027.
Over the period from 2024 to 2027, the company expects to return more than US$5 billion to shareholders, including the above initiatives and an existing US$2 billion share buyback programme funded from excess free surplus. Prudential also intends to return the initial net proceeds from the potential IPO of ICICI Prudential Asset Management Company Limited.
In the first quarter of 2025, Prudential plc reported new business profit of US$608 million, representing a 12% increase from the prior year. Annual premium equivalent (APE) sales for the quarter reached US$1,677 million, up 4% year-on-year.
Chief executive officer Anil Wadhwani (pictured above) commented on the results, saying: “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.
“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,” Wadhwani said.
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