Prudential plc (LSE:PRU) reported a 6% increase in new business profit to $2.09 billion for the nine months ended 30 September 2026, supported by growth across several Asian markets, while regulatory changes and lower sales volumes affected its Chinese Mainland life insurance operations.
Third-quarter new business profit rose 1% to $709 million on a constant exchange rate basis, compared with $702 million a year earlier. Excluding Chinese Mainland life operations, new business profit increased 13% during the quarter and 11% over the nine-month period.
New Business Margins Improve Despite Lower Quarterly Sales
Annual premium equivalent (APE) sales declined 6% to $1.60 billion in the third quarter, compared with $1.70 billion a year earlier. Nine-month APE sales were broadly unchanged at $5.03 billion.
The group’s third-quarter new business profit margin increased three percentage points to 44%, while the nine-month margin rose to 42% from 39%, supported by repricing measures.
Prudential reported year-to-date new business profit growth of 10% in its bancassurance channel and 2% through its agency network.
Chinese Mainland Performance Affects Full-Year Expectations
Prudential said new business profit at CITIC Prudential Life declined significantly during the third quarter following changes to bancassurance expense regulations and against higher prior-year comparisons.
The company now expects full-year new business profit from its Chinese Mainland operations to be approximately 10% to 15% below 2025 levels.
Although sales improved during September and October, Prudential said the slower-than-anticipated recovery means achieving its group-level 2026 new business profit growth guidance will be more challenging than previously expected.
The company nevertheless maintained its objective of double-digit growth across its four key financial metrics for 2026, alongside its 2027 financial targets.
Hong Kong and Southeast Asian Markets Support Growth
Hong Kong delivered double-digit new business profit growth during the third quarter, supported by higher margins and domestic demand through bancassurance, despite lower overall sales volumes.
Malaysia also recorded double-digit growth, while Thailand and Taiwan contributed to growth in the company’s wider markets segment.
Indonesia’s quarterly new business profit was marginally below the previous year, while Singapore reported a slight decline. Vietnam returned to growth in both sales and new business profit.
Prudential also reported progress towards regulatory approvals for its proposed controlling interest in Bharti Life in India and confirmed the launch of its standalone health insurance business.
Eastspring Assets Decline as Prudential Continues Share Buybacks
Eastspring’s funds under management or advice declined to $285.7 billion at the end of September from $290.8 billion at the end of June.
Net inflows of $5.4 billion were more than offset by adverse market movements and a $2.6 billion reduction associated with Prudential’s sale of a 2% stake in ICICI Prudential Asset Management Company Limited.
Prudential repurchased $1.0 billion of shares during the first nine months of 2026 and plans to increase total repurchases to $1.5 billion by year-end.
More About Prudential
Prudential plc (LSE:PRU) provides life and health insurance and asset management services across Greater China, ASEAN, India and Africa. The company maintains primary listings in London and Hong Kong, alongside listings in Singapore and New York.
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