Prudential Public H1 Earnings Call Highlights

Prudential Public NYSE: PUK reported broad-based first-half growth in 2026, with higher new-business profit, operating earnings per share, capital generation and dividends, while outlining additional shareholder returns and continued investment in Asian and African growth markets. Chief Executive Officer Anil Wadhwani said the insurer’s strategy remains centered on long-term savings and protection products, disciplined capital allocation, and expanding its multi-market, multi-channel distribution model. He said the first-half performance reflected “quality growth,” including expanding margins, stronger cash conversion and resilient capital generation. New-business profit rose 8% to $1.4 billion in the first half, or 10% excluding the Chinese mainland. Adjusted operating profit after tax increased 17% per share, while gross operating free surplus generation, or OFSG, increased 15% to $1.8 billion. The interim dividend per share rose 15%. Prudential said it returned $1 billion to shareholders during the first half through dividends and its buyback program. Chief Financial Officer Ben Bulmer said the company expects to increase its previously announced $1.2 billion 2026 share repurchase program by about $300 million. The company reaffirmed its expectation of returning more than $7 billion to shareholders from 2024 through 2027. Bancassurance was a major contributor to the half-year performance, with new-business profit increasing 13%, or 18% excluding the Chinese mainland. The channel accounted for 42% of Prudential’s first-half new-business profit, compared with 53% from agency distribution and 5% from other channels, including brokers. Wadhwani said Prudential is on track to reach the target range of its 2027 bancassurance objective a year early. The company attributed the performance to deeper exclusive strategic partnerships, a broader base of non-exclusive relationships, specialist distribution models and digital tools. Agency new-business profit increased 5%, while new-business profit per active agent rose 9% and agency margins improved by 2 percentage points. The company said it continues to focus on building a more productive agency workforce, including increasing the proportion of top-producing agents, using AI-enabled tools, improving recruitment and expanding training. Prudential’s new-business profit margin increased by 2 percentage points to 40%. Bulmer said the company continued to prioritize business with internal rates of return above 25% and shareholder payback periods of less than four years. Health new-business profit grew 15%, and health and protection products represented 33% of group new-business profit...