Prudential Delivers Strong H1 2025 Results, Boosts Shareholder Returns

Prudential PLC (LON:PRU) announced robust financial results for the first half of 2025, prompting an enhanced capital return program for shareholders.

Prudential shares are up over 1% in early Wednesday trading.

The insurance giant's performance underscores the success of its strategic focus on growth markets and efficient capital deployment.

New business profit, measured on a traditional embedded value (TEV) basis, surged by 12% to $1.26 billion.

Operating free surplus generated from its insurance and asset management operations also increased by 14% to $1.56 billion.

Meanwhile, adjusted operating profit before tax rose 6% to $1.644 billion and the adjusted operating profit after tax increased by 7% to $1.366 billion, with earnings per share based on adjusted operating profit at 49.3 cents, representing a 12% increase.

The company's balance sheet remains strong. Group TEV equity stands at $35.0 billion, equating to 1,354 cents per share. The free surplus ratio is reported at 221%, and GWS shareholder surplus over GPCR is $16.2 billion, resulting in a coverage ratio of 267%.

Prudential has been actively returning capital to shareholders. During the first half of the year, the company repurchased 72 million shares for $711 million and is expected to complete its current share buyback program by year-end.

The first interim dividend has been increased by 13% to 7.71 cents per share.

Prudential is shifting towards a total return orientation from the flow of capital generation, and is guiding for more than 10% growth in ordinary dividend per share for each of 2025-2027.

Additional capital returns are planned, including a $500 million share buyback in 2026 and $600 million in 2027.

Over the period 2024-2027, the company expects to return more than $5 billion to shareholders, including the existing $2 billion share buyback program. The initial net proceeds from the potential IPO of ICICI Prudential Asset Management Company Limited (IPAMC) are also intended to be returned.

CEO Anil Wadhwani stated that the company is pleased with its “strong performance in the first half of 2025, delivering double-digit growth across our key metrics in line with the guidance we gave earlier in the year,” reinforcing the company’s strategic progress and investments in growth.