Prudential plc reported a miss on headline growth and earnings estimates for the first half of 2026 as regulatory shifts in Mainland China offset strong momentum in other Asian markets. New business profit grew 8% to $1.38 billion, driven by margin expansion to 40% and a 13% increase in Southeast Asian new business profit. The company increased its 2026 share buyback commitment by $0.3 billion to $1.5 billion, reflecting robust capital generation from the in-force business.
Key Highlights
- New Business Profit of $1.384 billion grew 8% on a constant exchange rate basis but missed the $1.45 billion consensus estimate.
- Adjusted operating profit increased 9% to $1.81 billion, while Adjusted EPS of 58.4 cents came in significantly below the $1.10 analyst target.
- Mainland China operations saw a 4% decline in new business profit due to regulatory expense controls in bancassurance and a product pivot toward participating contracts.
- Total capital returns reached $1.0 billion in the half-year, supported by a 15% increase in the interim dividend to 8.88 cents per share.