Prudential (PRU) H2 2025 earnings summary

Executive summary

• Achieved double-digit growth across all key financial metrics in 2025, including new business profit, gross operating free surplus generation (OFSG), operating profit per share, and dividend per share, in line with or exceeding guidance and supporting consistent shareholder returns.

• Completed $2 billion share buyback in 2025, listed Indian AMC business, increased dividend per share by 15%, and launched a further $1.2 billion buyback for 2026; $1.3 billion capital return expected in 2027, subject to regulatory approval.

• Broad-based performance across all markets and channels, with new business profit up 12% to $2.8 billion and operating profit per share up 12%.

• Strong balance sheet, disciplined capital management, and predictable cash generation support ongoing investment and shareholder returns.

• On track to meet 2027 objectives: 15-20% CAGR in new business profit and gross OFSG exceeding $4.4 billion.

Financial highlights

• New business profit grew 12% to $2.8 billion year-over-year; operating profit per share up 12%; gross OFSG up 15% to $3.1 billion; dividend per share up 15%.

• Embedded value per share rose 15% to $14.53; return on embedded value improved to 15%.

• IFRS contractual service margin (CSM) balance up 14% to $25 billion; operating profit from insurance businesses up 5%.

• Group OFSG growth of 22% and free cash flow of $1.6 billion; free surplus ratio at 221%.

• Net OFSG up 22% year-over-year; embedded value operating profit up 15%.

Outlook and guidance

• Guiding for double-digit growth in new business profit, operating earnings per share, gross OFSG, and dividend per share in 2026.

• Confident in achieving 2027 financial objectives, including gross OFSG above $4.4 billion and NBP CAGR of 15-20% (2022-27).

• Over $7 billion expected to be returned to shareholders between 2024 and 2027.

• Dividend per share growth guided at greater than 10% per annum for 2026 and 2027.