Prudential (PRU) H1 2026 earnings summary

Executive summary

• Delivered double-digit growth in key financial metrics: new business profit (NBP) up 8% to $1.4 billion, adjusted operating profit after tax per share up 17%, gross operating free surplus generation (OFSG) up 15%, and dividend per share up 15% year-over-year.

• Strengthened portfolio with increased ownership in Malaysia (70%) and India (75% controlling stake in Bharti Life), and approval for standalone health license in India.

• Enhanced shareholder returns with an additional $0.3 billion buyback, raising total planned capital returns for 2026 and 2027 to $2.8 billion, and targeting over $7 billion in capital returns from 2024–2027.

• Embedded value operating profit up 11% to $2.5 billion; return on embedded value at 15%.

• Ongoing investments in distribution, technology, and product innovation, positioning for long-term success.

Financial highlights

• Adjusted operating profit after tax per share grew 17%; adjusted operating profit before tax reached $1,812 million (+10% YoY).

• New business profit reached $1.4 billion (+8% YoY), with margin expanding to 40%.

• Gross OFSG increased 15% YoY to $1.8 billion; dividend per share up 15% to 8.88 cents.

• Embedded value (EV) operating profit up 11% YoY; group TEV equity per share at $15.57 (+5% from Dec 2025).

• Operating free surplus from in-force insurance and asset management: $1,791 million (+15% YoY).

Outlook and guidance

• Reaffirmed full-year 2026 guidance for double-digit growth in NBP, gross OFSG, adjusted EPS, and DPS.

• 2027 objectives: NBP CAGR of 15–20% (2022–27) and gross OFSG above $4.4 billion.

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

• Expect full-year NBP in Chinese mainland to be similar to 2025 levels due to regulatory changes.

• Buyback program for 2026 increased by $0.3 billion, with over $7 billion in capital returns planned for 2024–2027.