(March 18): Prudential plc’s new business profit rose, thanks to growth in Hong Kong and China markets, as the insurer said it will buy back an additional US$1.2 billion ($1.5 billion) in its own stock.
New business profit climbed 13% to US$2.78 billion on an actual exchange rate basis in the 12 months to Dec 31, according to a statement on Wednesday. That compared with the US$2.76 billion average estimate by three analysts compiled by Bloomberg.
The growth rate would have been 12% on a constant exchange rate basis, excluding interest rate and other economic movements.
Prudential, which operates in 20 markets in Asia and Africa, has a plan to double new business profit to as much as US$5.4 billion by 2027 from the level in 2022. The insurer has ramped up expansions in other markets facing challenges including China and Hong Kong.
“Structural demand for our products in Asia and Africa continued to rise, driven by the increasing protection, retirement and wealth needs of our customers,” chief executive officer Anil Wadhwani said in the statement. He added he remains “confident” in meeting Prudential’s 2027 financial goals.
The company expects to return more than US$7 billion to shareholders via dividends from 2024 to 2027.
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By markets, Hong Kong recorded a 8% annual increase to US$2.22 billion in annual premium equivalent sales, which measures new policies sold. Singapore’s also rose 8% to US$938 million on the same measurement, while mainland China recorded a 34% jump to $621 million in the same period. The growth rate has factored in currency changes and other economic movements.
China customers continue to want health protection as well as long-term savings and pensions products, the insurer said. Its new business margin in that market, however, declined by three percentage points to 45% from a year earlier, reflecting regulatory developments and interest-rate volatility.
Prudential will pay a second interim dividend of 18.89 cents per share.
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