Prudential (PRU) H1 2026 (Q&A) earnings summary

Executive summary

• Delivered double-digit growth in EPS, DPS, gross OFSG, new business profit, and adjusted operating profit per share in H1 2026.

• Strengthened portfolio with increased ownership in Malaysia and India, and approval for a standalone health license in India.

• Transformation agenda progressing, with investments in technology, agency productivity, and health/protection offerings.

• Enhanced shareholder returns with increased buybacks and over $7bn capital returns planned for 2024-2027.

• Strong performance in Hong Kong, Malaysia, ASEAN, India, and Africa, with double-digit APE and new business profit growth.

Financial highlights

• New business profit up 8% year-over-year to $1.4bn; EPS up 17% to 58.4¢; free surplus generation up 15%.

• Interim dividend per share increased by 15% to 8.88¢; operating expense ratio improved by 40bps to 8.3%.

• New business margin expanded by 2 percentage points to 40%.

• Embedded value per share (ex-goodwill) reached $15.27; TEV equity per share at $15.57; ROEV at 15%.

• Gross OFSG up 15% year-on-year; net OFSG up 41%.

Outlook and guidance

• Reaffirmed 2026 guidance for double-digit growth across key financial metrics.

• Confident in achieving 2027 financial objectives and $4.4bn OFSG target.

• Ordinary dividend expected to grow by more than 10% in both 2026 and 2027.

• Expect continued margin improvement and positive underlying variances.

• Guidance for China business: full-year new business profit to be similar to 2025 on CER basis.