Prudential (PRU) H1 2024 (Q&A) earnings summary

Executive summary

• New business profit grew 8% year-over-year (ex-economics) to $1.5 billion in H1 2024, building on strong 2023 growth, with improved margins and diversified growth across markets and channels.

• Operating profit increased 9% year-over-year to $1.5 billion, supported by a large in-force portfolio and disciplined management.

• A $2 billion share buyback was launched in June 2024, with $192 million repurchased by August and $700 million expected by year-end.

• Interim dividend rose 9% to $188 million (6.84 cents per share).

• Strategic focus on operational improvements, digital platforms, and health business transformation is driving customer satisfaction.

Financial highlights

• New business profit reached $1.5 billion, up 8% ex-economics; as reported, up 1%.

• Operating profit was $1.5 billion, up 9% year-over-year.

• Embedded value (EEV) operating profit increased 9% to $2.3 billion; operating ROEV at 11%.

• Gross operating free surplus generation was $1.4 billion, down 4% year-over-year.

• Free surplus ratio at 232%, with group free surplus at $7.9 billion.

Outlook and guidance

• Full-year 2024 new business profit growth expected to align with the 2022–2027 CAGR target of 15–20%.

• Sales momentum picked up in June and is expected to continue in H2 2024 across agency and bancassurance channels.

• Underlying CSM growth remains within the 6–9% guided range.

• No change to growth targets or capital management approach with TEV adoption.

• Structural growth drivers in Asia and Africa remain robust, with strong demand for protection, savings, and retirement products.