Prudential plc on Thursday reported a net profit of US$995 million for the six months ended Jun 30, down 27 per cent year-on-year, as lower contributions from its Chinese mainland joint venture offset solid growth elsewhere in Asia.
The London- and Hong Kong-listed insurer’s total revenue climbed 19 per cent year-on-year to US$14.94 billion, helped by higher investment returns and insurance premiums. Basic earnings per share based on adjusted operating profit increased to 58.4 US cents from 49.3 US cents a year earlier.
Prudential declared a first interim dividend of 8.88 US cents per share, up 15 per cent from 7.71 US cents a year ago. The cash dividend will be paid on 22 Oct 2026 to shareholders on the UK and Hong Kong registers and on or around 29 Oct 2026 to Singapore shareholders. A scrip alternative will again be offered.
Adjusted operating profit before tax—a key internal measure—rose 10 per cent to US$1.81 billion. By segment, Hong Kong delivered US$665 million (up 14 per cent YoY on a constant-currency basis), Singapore contributed US$377 million (up 4 per cent), while the Chinese mainland joint venture slipped 7 per cent to US$209 million following regulatory changes and lower margins. Asset-management arm Eastspring posted US$155 million, broadly flat YoY.
New-business profit grew 8 per cent to US$1.38 billion, with the margin on annual premium equivalent widening to 40 per cent from 38 per cent. Operating free surplus generated from in-force insurance and asset-management businesses increased 15 per cent to US$1.79 billion.
Lower profit in the Chinese mainland, together with mark-to-market investment losses from higher US interest rates, weighed on bottom-line earnings.
During the half, Prudential raised its stake in its Malaysian conventional life unit to 70 per cent for about US$380 million and agreed to buy 75 per cent of Bharti Life in India, a move that will trigger a phased selldown of its interest in ICICI Prudential Life. The insurer also completed US$645 million of a planned US$1.2 billion share buyback and announced a further US$0.3 billion of repurchases to be executed by 18 Dec 2026.
Chief executive Anil Wadhwani said the company focused on “writing profitable new business” and on deploying technology and AI to deepen customer engagement and improve efficiency. He noted that strong capital generation enabled continued investment in growth initiatives while funding higher shareholder returns. Wadhwani reiterated full-year 2026 guidance for double-digit growth in new-business profit, operating free surplus and adjusted EPS, and maintained the 2027 target of at least US$4.4 billion of operating free surplus.
Looking ahead, Prudential expects Hong Kong and Chinese mainland sales comparisons to remain tough in July and August but to ease from September. Management believes structural demand for long-term savings and protection in Asia and Africa will underpin growth despite macroeconomic uncertainty.