Prudential sees new business profit growth slow, announces US$300m share buy-back

British insurer Prudential disclosed a US$300 million share buy-back, to be concluded by December, alongside reporting an 8 percent rise in new business profit for the first half of the year. The profit growth slowdown and share repurchase were influenced by worries over a possible retreat in Chinese tourists visiting Hong Kong, which could impact the performance of insurers in their largest market.

New business profit, a crucial indicator of future profitability for recently issued life insurance policies, reached US$1.38 billion in the six months concluding June 30, aligning with analysts' expectations. This figure marked a slowdown compared to the first half of 2025, when new business profit surged 12 percent to US$1.26 billion. During the same period, adjusted operating profit climbed by 9 percent to US$1.81 billion, or 58.4 US cents per share.

Annual premium equivalent sales, a significant sales metric combining standard and single premiums, grew by 3 percent to US$3.42 billion, an increase from US$3.29 billion in the corresponding period last year. Prudential's CEO, Anil Wadhwani, expressed continued focus on delivering long-term savings, health, and protection solutions in their markets while satisfying customer needs and adhering to the objectives of regulators and governments.

The company announced an additional dividend payment of 8.88 US cents per share, up from 7.71 US cents per share in the first half of 2025. Prudential's shares fell 1.07 percent to HK$110.6 in Hong Kong trading on Wednesday, trailing the broader Hang Seng Index, which rose 0.56 percent.