Prudential (PRU) H2 2025 (Q&A) earnings summary

Executive summary

• Achieved double-digit growth across all key financial metrics in 2025, including new business profit, adjusted operating profit after tax per share, gross OFSG, and dividend per share, with new business profit and OPAT per share up 12% year-over-year.

• Gross OFSG and dividend per share both increased by 15%, with consistent double-digit new business profit growth in every quarter of 2025.

• Successfully completed the IPO of the Indian asset management company and increased holding in the Malaysian business to 70%.

• Completed a $2bn share buyback in 2025, with an additional $1.2bn buyback planned for 2026 and $1.3bn capital return expected in 2027, subject to regulatory approval.

• Three years into a five-year plan, achieved 18% CAGR in new business profit from 2022-2025 and maintains confidence in delivering 2027 objectives of 15-20% NBP CAGR and gross OFSG exceeding $4.4bn.

Financial highlights

• New business profit reached $2.8bn, up 12% year-over-year; gross OFSG was $3.1bn, up 15%; adjusted OPAT per share rose 12%; dividend per share increased 15%.

• Return on embedded value rose to 15% in 2025, with net OFSG up 22% year-over-year.

• Free surplus ratio ended at 221% (204% excluding IPO proceeds), within the 175%-200% target range.

• S&P upgraded financial strength rating to AA; Moody’s leverage ratio at 13%.

• NBP margin expanded 2 percentage points to 42%.

Outlook and guidance

• Guiding for double-digit growth across key financial KPIs in 2026, confident in achieving 2027 financial objectives including NBP CAGR of 15-20% (2022-27) and gross OFSG above $4.4bn.

• Plan to return over $7 billion of capital to shareholders between 2024 and 2027, with ordinary dividends to grow in line with net operating free surplus generation.

• Additional capital returns above ordinary dividends, including $500 million in 2025 and $600 million in 2027.

• Investment in capability program to be largely completed by 2026, with $300-$350 million planned spend.

• Dividend per share expected to grow >10% per annum from 2025 to 2027.