Prudential (LSE:PRU) reported strong results for the 2025 financial year, delivering double-digit growth across key performance measures and maintaining momentum in its core markets across Asia and Africa.
New business profit on a traditional embedded value basis increased 12% to $2.78 billion, with margins improving to 42%. Operating free surplus generated from in-force insurance and asset management operations rose 15% to $3.06 billion, while adjusted operating earnings per share grew 12% to 101.4 cents.
The insurer also increased capital returns to shareholders. Total dividends were raised by 15%, and the company outlined plans to return more than $7 billion between 2024 and 2027 through a combination of higher dividend payouts and share buybacks. This includes a completed $2 billion share repurchase and a further $1.2 billion buyback programme currently in progress.
Strategically, Prudential strengthened its position in Southeast Asia by increasing its ownership stake in its Malaysian conventional insurance business to 70%. The group also received a credit rating upgrade to AA from S&P Global Ratings, highlighting its strong capital position and supporting management’s target of maintaining double-digit growth through to its 2027 financial objectives.
Looking ahead, Prudential’s outlook is supported by strong earnings momentum and ongoing strategic initiatives, including share buybacks and executive share purchases. While the company continues to demonstrate solid profitability and cash flow generation, potential risks include revenue volatility and fluctuations in equity markets. Overall, technical indicators and valuation metrics suggest continued growth potential, supported by expansion initiatives and investment in key markets.
More about Prudential
Prudential plc is a London- and Hong Kong-listed insurance and asset management group focused on Asia and Africa. The company provides protection, retirement and wealth management solutions through a multi-channel distribution model that includes a professional agency network, bancassurance partnerships and expanding health and protection offerings. Its strategy is supported by continued investment in digital platforms and technology modernisation to enhance customer reach and operational efficiency.
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