Prudential posts 8 percent rise in first-half new business profit, expands share buyback

Insurer Prudential (2378), reported first-half new business profit largely in line with market expectations on Thursday, driven ​by strong growth in Hong Kong, Malaysia and Singapore, ‌and expanded its ongoing share repurchase program by US$300 million.

New business profit, a measure of the lifetime profits expected from policies sold, rose to US$1.38 billion for the ​six months ended June 30, 8 percent higher than last year ​on a constant exchange rate basis, just shy of ⁠the Visible Alpha consensus estimate of US$1.39 billion.

In Hong Kong, new business ​profit rose 8 percent on a constant exchange rate basis to US$581 million ​in the first half, while Malaysia posted a 46 percent increase to US$70 million.

In mainland China, new business profit slipped 4 percent on a CER basis to US$159 million, hurt by ​a shift in sales towards lower-profit products and regulatory changes ​affecting bank distribution costs.

Excluding the Chinese mainland, new business profit grew by 10 percent on ‌a ⁠CER basis.

Earlier this month, shares of Hong Kong insurers fell on reports that China had begun levying a 20 percent personal income tax on returns from Hong Kong insurance policies, fuelling concerns over Beijing's crackdown on ​cross-border investment channels ​and its ⁠impact on demand from mainland Chinese customers.

"While it is too early to assess whether recent commentary regarding ​the enforcement of existing rules will affect the buying ​behaviour ⁠of Chinese mainland customers, we remain confident in the structural growth prospects of our Hong Kong business," the insurer said.

The London- and Hong Kong-listed ⁠insurer ​also announced an interim dividend of 8.88 ​cents per share, and increased its 2026 share repurchase program by US$300 million to US$1.5 billion.

Reuters

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