Prudential plc (PRU.L) — Company Research

Last Updated: 27 October 2026

Prudential plc is a life and health insurer and asset manager that operates in Asia and Africa. Its main markets are Hong Kong, Singapore, Malaysia, Indonesia, mainland China and India, and its Eastspring business manages money for the group and outside clients. It is listed in London and Hong Kong, has American Depositary Receipts in New York, and reports in US dollars. Since the last version of this report (11 June 2026) Prudential has reported first-half new business profit up 8% and operating EPS up 17%, raised its first interim dividend by 15%, increased its 2026 share buyback to US$1.472bn, sold a further 2% of ICICI Prudential Asset Management and started a standalone health insurer in India. Every figure below comes from Prudential's results announcements, IFRS disclosures, SEC filings and RNS notifications. There are no analyst opinions, price targets or ratings anywhere in it.

Share prices, and figures worked out from them, are not shown for London-listed companies on ChartsView.

1. Company Snapshot

Field	Value
Ticker / exchange	PRU — London Stock Exchange; also Hong Kong (2378) and New York ADRs (PUK)
Sector	Financials — life and health insurance and asset management in Asia and Africa
Revenue (FY2025)	$27,755m IFRS total revenue including investment return (2024: $16,659m); revenue from external customers (insurance revenue $11,080m plus other revenue $411m) $11,491m
Adjusted operating profit (FY2025)	$3,306m (2024: $3,129m); H1 2026 $1,812m, up 9% at constant exchange rates
IFRS profit after tax (FY2025)	$4,119m, including a $1,515m gain on corporate transactions, mainly the ICICI Prudential AMC listing; $3,978m attributable to equity holders
EPS (FY2025)	Basic 154.2¢; operating EPS 101.4¢ (2024: 89.7¢); H1 2026 operating EPS 58.4¢, up 17%
Dividend per share (FY2025)	26.60¢ (7.71¢ first interim plus 18.89¢ second interim); 2026 first interim 8.88¢, up 15%, paid 22 October 2026
New business profit	$2,782m in FY2025; $1,384m in H1 2026, up 8%, at a 40% margin
Shareholder GWS coverage ratio	268% at 30 June 2026 (31 December 2025: 262%)
Employees	Average of 15,338 in 2025 (14,770 in Asia and Africa, 568 at head office), per the 2025 Form 20-F
CEO / Leadership	Anil Wadhwani, Chief Executive Officer; Ben Bulmer, Chief Financial Officer; Sir Douglas Flint, Chair (since May 2026)
Shares in issue	2,481,079,843 at 30 September 2026 (total voting rights RNS), falling as bought-back shares are cancelled

2. The Bull and Bear Case

Bull Case

• Earnings growing fast: operating EPS rose 17% to 58.4¢ in H1 2026 and management expects double-digit growth in new business profit, operating free surplus and operating EPS for the full year.
• Rising capital returns: the 2026 buyback was raised to $1.472bn, the first interim dividend rose 15%, and Prudential plans to return more than $7bn over 2024–2027.
• Strong capital position: the shareholder GWS coverage ratio rose to 268% at 30 June 2026, and operating free surplus from in-force business rose 15% to $1,791m.
• Bancassurance and Hong Kong momentum: bancassurance new business profit rose 27% to $1,033m in 2025, and Hong Kong produced $1,219m of new business profit at a 55% margin.

Bear Case

• Sales growth slowing: APE sales rose only 3% in H1 2026, and management expects mainland China new business profit to be similar to 2025 because of new bancassurance expense rules.
• IFRS profit lower: IFRS profit after tax fell 27% to $995m in H1 2026 and basic EPS fell to 37.9¢ from 49.2¢.
• Agency growth modest: agency new business profit grew only 3% in 2025 against a target of 2.5 to 3 times 2022 levels by 2027.
• Retention below target: customer retention was 88% in 2025 against a 2027 target of 90–95%.

3. Revenue Segments

Prudential reports six insurance segments plus Eastspring. It does not split IFRS total revenue in a way that matches its management view, so the percentages below are each segment's share of FY2025 adjusted operating profit before central costs ($3,939m), from the FY2025 business review.

Segment	% of revenue	What it is
Hong Kong ($1,219m)	30.9%	Savings, protection and health products for local and mainland Chinese visitors, sold by agents and banks. APE sales $2,221m and new business profit $1,221m in FY2025; $665m operating profit in H1 2026.
Singapore ($706m)	17.9%	Life, health and savings products through agents and bank partners. APE $938m and new business profit $436m in FY2025.
Growth markets and other ($614m)	15.6%	India, Taiwan, Vietnam, Thailand, the Philippines, Africa and other markets. APE $2,187m and new business profit $667m in FY2025.
Mainland China ($411m)	10.4%	Prudential's 50% share of CITIC-Prudential Life, a joint venture with CITIC. APE $621m in FY2025.
Malaysia ($410m)	10.4%	Conventional and Islamic (takaful) insurance; Prudential raised its stake in the main business to 70% in January 2026. APE $436m in FY2025.
Eastspring ($329m)	8.4%	Asset manager for the group and outside clients, with $290.8bn of funds under management or advice at 30 June 2026.
Indonesia ($250m)	6.3%	Conventional and sharia life and health insurance. APE $258m and new business profit $118m in FY2025.

Health and protection made up 36% of FY2025 new business profit. Follow Asian and global markets on the ChartsView Live Charts page.

4. Business Model and Moat

How it makes money. Prudential sells regular-premium savings, protection and health policies through about 57,000 active agents and more than 180 bank partners. Under IFRS 17 the expected profit on each policy is stored in the contractual service margin and released over time, while new business profit measures the value of each year's sales. Eastspring earns fees on money it manages. Most investment returns in the IFRS accounts belong to policyholders, so the group runs itself on adjusted operating profit, new business profit and free surplus.

Capital and cash. The shareholder GWS surplus was $17.1bn at 31 December 2025. Operating free surplus from in-force business was $1,791m in H1 2026, and the 2027 objective is at least $4.4bn of gross operating free surplus. Core structural borrowings were $4,448m at 30 June 2026.

The moat. Prudential has operated in Asia for decades and has top positions in several markets, a large professional agency force (ranked second globally for Million Dollar Round Table agents in September 2026) and long-term bank partnerships, 11 of them strategic. Licences and joint ventures in mainland China and India are hard for new entrants to replicate.

Capital return policy. Management targets dividend growth above 10% in each of 2026 and 2027, more than $7bn returned to shareholders over 2024–2027 and an expected $1.3bn capital return in 2027.

5. Financial Health

Prudential reports in US dollars under IFRS and adopted IFRS 17 from 2023, restating 2022. The revenue column is IFRS "total revenue" from the segment note, which includes investment return; most of that return belongs to policyholders, so the figure swings with markets. Revenue from external customers (insurance revenue plus other revenue) was $8,985m (2022), $9,740m (2023), $10,740m (2024) and $11,491m (2025).

Fiscal Year	Revenue ($m)	YoY %	GAAP EPS	Adjusted EPS	Dividend/share	Long-term debt (YE)
FY2021	23,014‡	n/m	(77.7)¢	101.5¢	17.23¢	$6,127m
FY2022	(20,395)	n/m	(36.8)¢	79.4¢	18.78¢	$4,261m
FY2023	19,503	n/m	62.1¢	89.0¢	20.47¢	$3,933m
FY2024	16,659	−14.6%	84.1¢	89.7¢	23.13¢	$3,925m
FY2025	27,755	+66.6%	154.2¢	101.4¢	26.60¢	$4,459m

Adjusted EPS is operating EPS based on adjusted operating profit after tax and non-controlling interests. ‡ FY2021 is "total revenue, net of reinsurance" under the old IFRS 4 basis and is not directly comparable; its EPS is also IFRS 4, with basic EPS of (77.7)¢ including the loss on the Jackson demerger (83.4¢ from continuing operations). FY2022 is the IFRS 17 restated figure and was negative because investment values fell. Long-term debt is core structural borrowings of shareholder-financed businesses at each year end; operational borrowings were a further $831m at 31 December 2025.

Quarter / Half	Revenue ($m)	Adjusted EPS	GAAP EPS
H1 2026	14,939	58.4¢	37.9¢
H2 2025 (derived)	15,181	about 52.1¢	about 105.0¢
H1 2025	12,574	49.3¢	49.2¢
FY2025 total	27,755	101.4¢	154.2¢

Prudential reports half-yearly, with quarterly new business updates. H2 2025 is the full year minus the first half and is approximate for EPS. Revenue from external customers was $6,151m in H1 2026 against $5,515m in H1 2025. H2 2025 basic EPS includes most of the $1,515m gain on the ICICI Prudential AMC listing.

Cash flow and balance sheet. Net cash from operating activities was $2,450m in FY2025 (2024: $3,609m) and purchases of property, plant and equipment were $104m. Depreciation and amortisation expense was $571m. Cash and cash equivalents were $7,706m at 31 December 2025 and $5,889m at 30 June 2026. Shareholders' equity was $20,117m at the end of 2025 and $19.8bn at 30 June 2026.

Outlook. At the H1 2026 results management guided to double-digit growth in new business profit, gross operating free surplus and operating EPS for 2026, plus double-digit dividend growth, and kept its objective of 15–20% compound annual growth in new business profit over 2022–2027.

6. Valuation Metrics

Raw metrics, October 2026. Not opinions on whether the stock is cheap or expensive.

Metric	Value
Adjusted operating profit	$3,306m for FY2025; $1,812m for H1 2026, up 9%
Operating EPS	101.4¢ for FY2025; 58.4¢ for H1 2026, up 17%
New business profit	$2,782m for FY2025; $1,384m for H1 2026 at a 40% margin
Operating free surplus from in-force business	$1,791m for H1 2026, up 15%
Shareholder GWS coverage ratio	268% at 30 June 2026
IFRS shareholders' equity per share	789¢ at 30 June 2026 ($19.8bn); EEV equity 1,557¢ per share ($39.1bn)
Free cash flow (accounting)	$2,346m for FY2025: operating cash flow $2,450m less property, plant and equipment purchases $104m (FY2025 cash flow statement). Insurer cash flows mix policyholder and shareholder money.
Net debt (shareholder borrowings)	Core structural borrowings $4,459m plus operational borrowings $831m = $5,290m at 31 December 2025, against group cash of $7,706m
Dividend per share	26.60¢ for FY2025; 8.88¢ first interim for 2026, up 15%
Short interest (% of float)	Below 0.2%: Prudential does not appear in the FCA's aggregate net short position list (fetched 27 October 2026), which covers totals of 0.2% or more. On the New York ADR line, MarketBeat showed 740,985 ADRs short, 0.06% of float, at the 15 October 2026 settlement date.
Days to cover	0.6 days for the New York ADR line (MarketBeat, 15 October 2026); not published for the London line

7. What Are They Building

A controlling stake in an Indian life insurer. On 17 May 2026 Prudential agreed to buy 75% of Bharti Life for ₹3,500 crore (about $389m), plus up to ₹700 crore more. The deal requires it to cut its 22% stake in ICICI Prudential Life to below 10%.

Health insurance in India. Prudential Health India, a 70:30 joint venture with HCL, received its registration on 1 July 2026 and started operations on 20 August 2026.

Returning ICICI Prudential AMC proceeds. The December 2025 listing of ICICI Prudential Asset Management raised net proceeds of $1.4bn, and a further 2% stake was sold on 27 August 2026 for about $0.3bn. Both are being returned through the buyback.

Distribution targets. The 2027 targets are agency new business profit of 2.5 to 3 times the 2022 level and bancassurance of 1.5 to 2 times. On 24 September 2026 Prudential put Indonesia, the Philippines and Africa under one regional chief executive, Naveed Irshad, from 26 October 2026.

8. Competitive Landscape

Prudential competes with pan-Asian life insurers, local champions and bank-owned insurers for agency and bancassurance sales.

Peer	Key 2025 metric
AIA Group (1299.HK)	2025 value of new business $5,516m, up 15% (AIA 2025 results release)
Manulife (MFC), Asia segment	2025 Asia APE sales up 18%, new business value up 20% and core earnings up 18% (Q4 2025 report)
FWD Group (1828.HK)	2025 annualised premium equivalent sales $2,446m, up 25% (2025 results release)
Ping An (2318.HK)	2025 life and health new business value RMB36,897m, up 29.3% (2025 results release)
Great Eastern (Singapore)	2025 profit attributable to shareholders S$1,207.1m, up 21% (FY2025 results release)

Prudential's 2025 new business profit of $2,782m is about half of AIA's $5,516m value of new business, the closest comparable measure AIA reports.

9. Leadership and Insider Activity

Anil Wadhwani is Chief Executive Officer (CEO) and Ben Bulmer is Chief Financial Officer. Sir Douglas Flint joined the board in March 2026 and became Chair in May 2026, succeeding Shriti Vadera, who retired at the 28 May 2026 AGM. Jeremy Anderson is Senior Independent Director. Adrian de Souza succeeded Tom Clarkson as Company Secretary on 9 October 2026, and Naveed Irshad joined the Group Executive Committee as Regional CEO for Indonesia, the Philippines and Africa on 26 October 2026.

The following director and PDMR dealings were disclosed through RNS notifications in 2026. All are monthly share plan purchases, matching awards or releases of earlier awards; no open-market sales by directors were found.

Name	Date	Type	Shares	Plan Type
Anil Wadhwani; Ben Bulmer; and five other PDMRs	12 Oct 2026	Purchase	46 each for Wadhwani and Bulmer	All Employee Share Purchase Plan
Ben Bulmer; and three other PDMRs	22 Sep 2026	Matching shares, nil cost	303 for Bulmer	All Employee Share Purchase Plan
Anil Wadhwani; Ben Bulmer; and five other PDMRs	10 Sep 2026	Purchase	42 each for Wadhwani and Bulmer	All Employee Share Purchase Plan
Anil Wadhwani; Ben Bulmer; and five other PDMRs	10 Aug 2026	Purchase	40 each for Wadhwani and Bulmer	All Employee Share Purchase Plan
Naveen Tahilyani (PDMR)	30 Jun 2026	Release, nil consideration	41,153	Restricted Stock Plan
Anil Wadhwani; Ben Bulmer; and six other PDMRs	27 Mar 2026	Release of vested awards	Not totalled here	Long Term Incentive Plan and Deferred Annual Incentive Plan

10. Key Risks

• China and Hong Kong exposure (Macro): Hong Kong and mainland China together produced about 41% of 2025 segment operating profit, so a slowdown in mainland visitor sales or Chinese economic weakness would hit growth.
• Regulation of bancassurance (Regulatory): new mainland China expense rules have already flattened expected 2026 new business profit there, and rules in other markets could change product economics.
• Interest rates and markets (Market): falling rates or equity markets reduce the value of savings products, Eastspring fees and the IFRS result; H1 2026 IFRS profit fell 27%.
• India deal execution (Execution): the Bharti Life purchase needs regulatory approval and requires Prudential to cut its ICICI Prudential Life stake below 10%.
• Distribution productivity (Operational): agency new business profit grew only 3% in 2025 and customer retention of 88% is below target.
• Currency (Financial): Prudential reports in US dollars but earns in many Asian currencies, so a stronger dollar reduces reported results.

11. Recent Developments

• 20 Aug 2026 — India health insurer opens. Prudential Health India, the joint venture with HCL, started operations after receiving its registration on 1 July.
• 27 Aug 2026 — H1 2026 results. New business profit rose 8% to $1,384m and operating EPS 17% to 58.4¢, while IFRS profit after tax fell 27% to $995m; the first interim dividend rose 15% to 8.88¢.
• 27 Aug 2026 — Further ICICI Prudential AMC sale. Prudential sold a 2.0% stake for about $0.3bn, to be returned to shareholders.
• 02 Sep 2026 — Buyback increased. The 2026 buyback was raised from $1.2bn to $1.472bn, to finish by 18 December 2026.
• 24 Sep 2026 — Regional leadership change. Naveed Irshad was named Regional CEO for Indonesia, the Philippines and Africa from 26 October 2026.
• 15 Oct 2026 — Renminbi debt issue. Final terms were published for CNY 1bn of 2.80% subordinated notes due 2036, issued by Prudential Funding (Asia).
• 22 Oct 2026 — Interim dividend paid. The 8.88¢ first interim dividend for 2026 was paid to shareholders on the register on 11 September.

12. Key Dates to Watch

• Expected Nov 2026 — Q3 2026 new business update; a Prudential calendar page lists 5 November 2026, but this is not yet confirmed on the current financial calendar
• 18 Dec 2026 — latest finish date for the $1.472bn 2026 share buyback
• Expected Mar 2027 — FY2026 full-year results and second interim dividend (FY2025 results were published on 18 March 2026)
• TBC — completion of the Bharti Life acquisition, subject to regulatory approval
• 31 Dec 2027 — end of the 2022–2027 target period for 15–20% compound growth in new business profit and at least $4.4bn of gross operating free surplus

US Federal Reserve decisions and Asian economic data that move the dollar and bond yields are on the ChartsView Economic Calendar. Discuss Asian insurers with other investors in the ChartsView Forum.

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