Prudential Public H1 Earnings Call Highlights

Prudential Public (NYSE:PUK) reported first-half 2026 growth across several key financial measures, with new business profit rising 8%, earnings per share increasing 17%, and gross operating free surplus generation climbing 15% from a year earlier. Chief Executive Officer Anil Wadhwani said the insurer remains focused on converting new business profit into cash generation while investing in its insurance and asset-management businesses across Asia and Africa. The company increased its first interim dividend per share by 15% and said it remains committed to its guidance for double-digit growth across key financial metrics in 2026, as well as its 2027 financial objectives.

“We remain firmly focused on the delivery of our guidance for 2026 of double digit growth across our key financial metrics and on achieving our 2027 financial objectives,” Wadhwani said.

Hong Kong, ASEAN and India Strategy Wadhwani highlighted a more balanced Hong Kong business following the company’s efforts to expand its domestic franchise. Domestic customers now account for 50% of new business profit in the segment, while Chinese mainland visitors account for the other half. Domestic new business grew 22% during the first half, according to management. The company said Hong Kong margins benefited from growth in health and protection business, as well as repricing and product-mix changes in some savings and protection products. Chief Financial Officer Ben Bulmer said health and protection represented about 57% to 58% of products on a policy-count basis in Hong Kong. Management said it had not seen any effect on lapses, persistency or customer retention from discussion around tax enforcement related to Chinese mainland customers. Bulmer said about half of Hong Kong’s value in force relates to Chinese mainland visitors, of which 55% is health and protection business. More than 95% of payments for the products are made from funds already held in Hong Kong, he said.

Elsewhere, ASEAN markets increased new business profit by 13%, while the company’s India and Africa businesses delivered double-digit annual premium equivalent, or APE, growth. Wadhwani said Malaysia, Thailand, Singapore and Vietnam were expected to support group growth in the second half, though growth in Malaysia is expected to moderate from the first-half pace. In India, Prudential said it has begun writing policies in its health insurance joint venture with HCL. Subject to regulatory approval of its transaction involving Bharti, the company expects to operate complementary life and health insurance platforms in the market. Regional CEO Naveen Tahilyani said the company’s near-term priority is to build a high-quality and profitable business over the next three to five years, with India potentially becoming a material franchise over five to 10 years.

Margins, Capital Generation and Shareholder Returns Bulmer said the group’s new business margin expanded by two percentage points to 40% in the first half. He cited a continued focus on higher-return business, health and protection products, and agency productivity as opportunities for further medium-term improvement. Embedded value per share excluding goodwill reached $15.27, or £11.50, and return on embedded value was 15%. Bulmer said the company sees scope to improve that return by two to three percentage points through the completion of its capability investment program, improved operating variances and increased operating leverage. The company said underlying variances returned to positive territory, reflecting claims-management actions, higher revenue premiums and cost containment. Prudential expects to invest between $300 million and $350 million in 2026 as it largely completes its capability investment program, and it expects positive variances of more than $200 millio.