Prudential (PRU) H1 2025 earnings summary

Executive summary

• Achieved double-digit growth in key financial metrics for H1 2025, including new business profit up 12% to $1.3 billion, operating profit after tax per share up 12%, and gross operating free surplus generation up 14% year-over-year.

• Broad-based growth across 13–14 of 19 life markets, with standout performances in Hong Kong (+16% NBP), Indonesia (+34%), and Mainland China (+8%).

• Enhanced capital allocation framework introduced, targeting >$5 billion in shareholder returns between 2024–2027, with ordinary dividends to grow >10% annually and additional recurring capital returns of $500 million in 2026 and $600 million in 2027.

• On track to achieve 2025 guidance and confident in meeting 2027 objectives, including 15–20% CAGR in new business profit and >$4.4 billion gross OFSG by 2027.

• Progressed strategic priorities, including bancassurance expansion in Indonesia, Indian health business development, and settlement of a Malaysian dividend claim.

Financial highlights

• New business profit up 12% to $1.3 billion; margins expanded by 2 percentage points to 38%.

• Operating profit after tax per share and EPS both grew 12% to 49.3 cents; adjusted operating profit before tax $1,644 million (+6%), after tax $1,366 million (+7%).

• Gross operating free surplus generation up 14% to $1.6 billion; net OFSG up 20% year-over-year.

• Interim dividend per share increased 13% to $0.0771; $850 million in share buybacks completed, with $360 million remaining for 2025.

• Embedded value per share grew 5% to $13.24; embedded value operating profit up 16%; return on embedded value improved by 2 percentage points to 15%.

Outlook and guidance

• Guiding to >10% annual dividend per share growth from 2025–2027, with additional recurring capital returns of $500 million in 2026 and $600 million in 2027.

• On track to achieve >$4.4 billion gross operating free surplus generation in 2027 and 15–20% CAGR in new business profit (2022–2027).

• Confident in achieving 2027 new business profit and free surplus generation objectives, supported by disciplined execution and favorable market fundamentals.

• Intention to return net proceeds from potential IPO of India AMC.