Prudential to kick off US$2b buyback

Prudential (2378) announced the launch of a US$2 billion (HK$15.6 billion) share repurchase program, which is expected to be completed no later than mid-2026, according to a filing yesterday.

The UK insurance giant also said that its dividend policy remains unchanged, with the board continuing to expect the 2024 annual dividend to grow in the range of 7-9 percent.

The company said it seeks to operate with a free surplus ratio of between 175 percent and 200 percent based on its current risk profile and its business units' applicable capital regimes.

It said capital will be returned to shareholders if the free surplus ratio is above the operating range over the medium term, taking into account opportunities to reinvest at appropriate returns and allowing for market conditions

At the end of last year, Prudential's free surplus ratio came in at 242 percent. It thus decided to return US$2 billion to shareholders after taking into account the 2023 second interim dividend