Prudential (PRU) H1 2025 (Q&A) earnings summary

Executive summary

• Achieved double-digit growth in key financial metrics for H1 2025, including new business profit up 12%, adjusted operating profit per share up 12%, and operating free surplus up 14% year-over-year.

• Broad-based growth across 13 of 19 life markets, with Hong Kong new business profit up 16%, Indonesia up 34%, and Mainland China up 8%.

• Reached an inflection point in capital generation, supporting an updated capital management program and enhanced shareholder returns, with over $5 billion expected to be returned between 2024 and 2027.

• Strategic transformation, launched in August 2023, is halfway complete, with $400 million invested in technology, processes, and capabilities to drive operational effectiveness and customer engagement.

• On track to achieve 2025 guidance and confident in meeting 2027 financial objectives.

Financial highlights

• New business profit for H1 2025 was $1.3 billion, up 12% year-on-year; NBP margin expanded to 38%.

• Gross operating free surplus generation reached $1.6 billion, up 14% year-on-year; net OFSG up 20%.

• Earnings per share based on adjusted operating profit increased 12% to 49.3 cents.

• Embedded value per share (excluding goodwill) at period end was $13.24 (£9.66); return on embedded value improved to 15%.

• Dividend per share increased by 13% year-on-year, with a policy targeting >10% annual growth from 2025–2027.

Outlook and guidance

• On track to deliver >10% growth in value, earnings, and capital generation for full-year 2025.

• Dividend per share expected to grow >10% annually through 2027, with recurring capital returns of $500 million in 2026 and $600 million in 2027.

• Additional recurring capital returns to commence in 2026, with net proceeds from the potential India AMC IPO intended to be returned to shareholders.

• Active agent numbers expected to grow 7%-10% annually in 2026 and 2027, after a 7% decline year-on-year in H1 2025.

• 2027 objectives include 15–20% CAGR in NBP (2022–2027) and gross OFSG of at least $4.4 billion.