Prudential (PRU) H1 2024 (Q&A) earnings summary

Executive summary

• New business profit for H1 2024 grew 8% year-over-year to $1.5 billion (ex-economics), with adjusted operating profit up 9% to $1.54 billion and improved margins, following strong 2023 growth.

• Interim dividend for 2024 increased 9% to $188 million (6.84 cents per share); $2 billion share buyback program launched in June, with $192 million repurchased by August and $700 million expected by year-end.

• Strategic focus on operational improvements, digital transformation, and health business, with early results seen in agency productivity and technology-powered distribution.

• IFRS profit after tax dropped to $182 million from $947 million, mainly due to adverse short-term market fluctuations.

• Continued confidence in achieving 2027 strategic and financial objectives, including 15-20% NBP CAGR and double-digit operating free surplus growth.

Financial highlights

• New business profit reached $1.5 billion, up 8% ex-economics; operating profit was $1.5 billion, up 9% year-over-year.

• APE sales up 6% to $3,111 million; new business margin at 47%.

• Group EEV operating profit up 9% to $2.3 billion; operating ROEV at 11%.

• Operating free surplus from in-force insurance and asset management fell 4% to $1,351 million; total operating free surplus was $983 million, down 4%.

• Free surplus ratio at 232%, with group free surplus at $7.9 billion.

Outlook and guidance

• Full-year 2024 new business profit growth expected to align with the 2022–2027 CAGR target of 15–20%.

• Sales momentum from June is expected to continue into H2 2024 across agency and bancassurance channels.

• Underlying CSM growth remains within the 6-9% guided range.

• Transition to traditional embedded value (TEV) reporting from Q1 2025 to enhance transparency and comparability; no change to business strategy or dividend policy.

• Confident in achieving 2027 objectives for new business profit and double-digit operating free surplus growth.