Prudential posts $1.812 billion in operating profit and adds $300 million to buyback
Key Facts
Prudential reported on August 27, 2026, results for the six months ended June 30, posting adjusted operating profit before tax of $1.812 billion, up 9% on a constant-currency basis from the same period in 2025. New business profit rose 8% on the same basis to $1.384 billion from $1.260 billion, while growth was 10% on an actual exchange-rate basis. The new business margin increased to 40% from 38%, a rise of two percentage points. In the same results, the company announced an increase in its first interim dividend and an addition of about $300 million to its 2026 share buyback programme. The decisions followed total capital returns to shareholders of $1 billion in the first half.
Adjusted operating profit after tax rose 10% on a constant-currency basis to $1.523 billion, compared with $1.366 billion in the first half of 2025. Free surplus generated from in-force insurance and asset management businesses reached $1.791 billion, up 15% from $1.560 billion a year earlier. By contrast, profit after tax under IFRS fell 27% to $995 million from $1.359 billion. The results thus show a divergence between growth in adjusted operating measures and a decline in accounting profit after tax. The company did not provide a separate explanation for the IFRS decline in these figures.
Prudential said growth in new business profit and a wider margin reflected its continued strategic focus on a high-quality product mix. The chief executive added that the company delivered “high-quality growth, margin expansion and strong capital generation” in the first half. He said the strength of performance gives it the capacity to invest in long-term growth opportunities while increasing shareholder returns. New business profit in the ASEAN region rose 13% during the period, while combined APE sales in India and Africa increased 13%. These indicators place business expansion alongside dividends and buybacks among the key themes of the results announcement.
The free surplus ratio stood at 209% on June 30, compared with 221% on December 31, 2025, while the GWS shareholder coverage ratio reached 268%. The company raised its first interim dividend for 2026 by 15% to 8.88 U.S. cents per share, compared with 7.71 cents in 2025. It said the dividend would be paid on October 22 to shareholders registered in the UK and Hong Kong, as well as holders of American depositary receipts. Those registered in Singapore are scheduled to receive payment around October 29. The dividend is paid in different currencies according to the shareholder register: in pounds sterling for those registered in the UK and Hong Kong dollars for those registered in Hong Kong, with U.S. dollars available by election.
Prudential added about $300 million to its 2026 share buyback programme, which it had previously announced at $1.2 billion, targeting completion of the addition by December 18. The company said the addition is alongside the $1.3 billion 2027 programme it had previously indicated. At the same time, it reaffirmed its focus on double-digit growth guidance for fiscal 2026 in new business profit, Gross OFSG and adjusted earnings per share, alongside double-digit growth in per-share dividends. It also said it is pursuing its financial objectives for 2027. The company thus links its shareholder returns plan to its operating and financial guidance for the two fiscal years.
The company said its Hong Kong and mainland China businesses face high year-on-year comparisons in July and August, with those comparisons set to ease clearly from September. In mainland China, it said activity is adjusting to recent regulatory changes related to bancassurance expense rules. Prudential expects China new business profit in 2026 to be similar to its 2025 level. In the market, PUK, the company's American depositary receipt, closed at $23.98 on October 27. The company's ordinary shares are listed in London and Hong Kong.