Prudential (2378) on Wednesday announced a US$1.1 billion (HK$8.58 billion) share buyback and signalled higher dividends over the next two years, after reporting a near tenfold jump in interim net profit.

The London- and Hong Kong-listed insurer plans to repurchase shares worth US$500 million in 2026 and US$600 million in 2027, on top of an existing US$2 billion buyback launched last year.

It also guided to more than 10 percent annual dividend growth through fiscal year 2027 and declared a payout of 7.71 US cents per share for the six months to June 30, up from 6.84 US cents a year ago.

"We have reached the inflection point in our capital generation, enabling us to update our capital management programme and increase shareholder returns," said CEO Anil Wadhwani.

Prudential also plans to return proceeds from the potential IPO of ICICI Prudential Asset Management, a 49 percent-owned joint venture with India's ICICI Bank .

IPAMC filed for a US$1.2 billion IPO at a US$12 billion valuation earlier this year.

On Friday, the insurer said a "draft red herring prospectus" was filed in July, comprising an offer for sale of up to 10 percent of the equity share capital in IPAMC by Prudential's subsidiary.

For the six months ending June, Prudential reported net profit attributable to shareholders of US$1.284 billion, up 9.7 times from a year earlier.

Its first-half new business profit on a traditional embedded value basis rose to US$1.26 billion, up 12 percent on a constant exchange rate basis from year-ago US$1.12 billion, led by growth in Hong Kong and Indonesia.

Hong Kong, Prudential's top money-making region, recorded annual premium equivalent sales growth of 13 percent on a constant exchange rate basis. New business profit from the city grew 16 percent in the first half.

REUTERS and STAFF REPORTER

Insurer Prudential unveils US$1.1 billion buyback, first-half profit rises