PRUDENTIAL PLC HALF YEAR 2025 RESULTS: Delivering growth and capital returns to shareholders through consistent execution
Prudential plc (“Prudential”; HKEX: 2378; LSE: PRU) today announced its financial results for the six months ended 30 June 2025 along with updated guidance on capital returns.
Performance highlights on a constant exchange rate basis unless otherwise stated are as follows:
- New business profit on a traditional embedded value (TEV) basis was up 12 per cent to $1,260 million.
- Operating free surplus generated from in-force insurance and asset management business was up 14 per cent to $1,560 million.
- Adjusted operating profit before tax increased 6 per cent to $1,644 million. Adjusted operating profit after tax increased by 7 per cent to $1,366 million. Earnings per share based on adjusted operating profit was 49.3 cents per share, an increase of 12 per cent.
- Group TEV equity of $35.0 billion, equivalent to 1,354 cents per share.
- Free surplus ratio of 221 per cent (31 December 2024: 234 per cent) and GWS shareholder surplus over GPCR of $16.2 billion, equivalent to a coverage ratio of 267 per cent.
- Repurchased 72 million shares for $711 million from 1 January to 30 June 2025, expect to complete current programme by year end.
- First interim dividend increased by 13 per cent to 7.71 cents per share (2024: 6.84 cents per share on an AER basis).
- Capital management update: Move to a total return orientation out of annual flow of capital generation:
- Guidance of more than 10 per cent growth in ordinary dividend per share for each of 2025-2027.
- Additional returns of capital: $500 million share buyback in 2026 and $600 million in 2027.
- Over the period 2024-2027 expect to have returned to shareholders more than $5 billion including the above returns and existing $2 billion share buyback programme out of excess free surplus.
- In addition, we intend to return initial net proceeds from the potential IPO of ICICI Prudential Asset Management Company Limited (‘IPAMC’).
Commenting on the results, CEO Anil Wadhwani, said: “We are pleased with our 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. We have reached the inflection point in our capital generation, enabling us to update our capital management programme and increase shareholder returns, which validates our business model and its ability to generate sustainable cash returns. Reflecting our strategic progress and investments in the growth drivers of the business, we are confident we will carry this momentum into the second half and beyond, keeping us firmly on track to achieve our 2027 financial objectives.”
| Half Year | Change on | |||
| Summary performance financials (before non-controlling interests) | 2025 $m | 2024 $m | AER basis | CER basis |
| New business profit | 1,260 | 1,121 | 12% | 12% |
| Operating free surplus generated from in-force insurance and asset management business | 1,560 | 1,370 | 14% | 14% |
| Adjusted operating profit before tax | 1,644 | 1,544 | 6% | 6% |
| Adjusted operating profit after tax | 1,366 | 1,271 | 7% | 7% |
| IFRS profit after tax | 1,359 | 182 | n/a | n/a |
| 30 Jun 2025 | 31 Dec 2024 | |||
| Balance sheet financials (after non-controlling interests) | Total | Per share | Total | Per share |
| Group TEV equity | $35.0bn | 1,354¢ | $34.3bn | 1,289¢ |
| IFRS shareholders’ equity | $18.1bn | 701¢ | $17.5bn | 658¢ |
Key summary financials
Earnings
| Half year | Change on | Full Year | |||
| Key summary financials | 2025 $m | 2024 $m | AER basis | CER basis | 2024 $m |
| Adjusted operating profit | 1,644 | 1,544 | 6% | 6% | 3,129 |
| Adjusted operating profit after tax | 1,366 | 1,271 | 7% | 7% | 2,582 |
| Basic earnings per share based on adjusted operating profit (cents) | 49.3¢ | 43.8¢ | 13% | 12% | 89.7¢ |
| IFRS profit after tax | 1,359 | 182 | n/a | n/a | 2,415 |
| Basic earnings per share based on IFRS profit after tax (cents) | 49.2¢ | 4.4¢ | n/a | n/a | 84.1¢ |
Value
| Half year | Change on | Full Year | |||
| Key summary financials | 2025 $m | 2024 $m | AER basis | CER Basis | 2024 $m |
| APE sales | 3,288 | 3,111 | 6% | 5% | 6,202 |
| Present value new business premiums (PVNBP) | 14,886 | 13,527 | 10% | 9% | 29,034 |
| New business profit (TEV) | 1,260 | 1,121 | 12% | 12% | 2,464 |
| New business margin (% APE) | 38 | 36 | 2ppts | 2ppts | 40 |
| Life weighted premium income | 13,667 | 12,385 | 10% | 9% | 25,409 |
| TEV operating profit | 2,240 | 1,913 | 17% | 16% | 4,095 |
| Operating return on embedded value (%) | 15 | 13 | n/a | n/a | 14 |
| Half Year | Full Year | Change on | |
| 2025 $m | 2024 $m | AER basis | |
| Group TEV equity | 35,000 | 34,267 | 2% |
| Group TEV equity per share (US$) | 13.54 | 12.89 | 5% |
| Group TEV per share ($) | 13.24 | 12.62 | 5% |
| Eastspring funds under management / advice ($bn) | 274.9 | 247.4 | 11% |
Capital
| Half Year | Change on | Full Year | |||
| Key summary financials | 2025 $m | 2024 $m | AER basis | CER basis | 2024 $m |
| Operating free surplus generated from in-force insurance and asset management business | 1,560 | 1,370 | 14% | 14% | 2,666 |
| Operating return on IFRS shareholders’ equity (%) | 14 | 14 | – | n/a | 14 |
| Dividend per share (cents) | 7.71¢ | 6.84¢ | 13% | n/a | 23.13¢ |
| Half Year | Full Year | Change on | |
| 2025 $m | 2024 $m | AER basis | |
| IFRS shareholders’ equity | 18,119 | 17,492 | 4% |
| IFRS shareholders’ equity per share (US$) | 7.01 | 6.58 | 6% |
| Adjusted total comprehensive equity* | 38,613 | 36,660 | 5% |
| Free surplus excluding distribution rights and other intangibles | 8,520 | 8,604 | (1)% |
| Free surplus ratio (%) | 221 | 234 | (13)ppts |
| Group leverage ratio (Moody’s basis) (%) | 14 | 13 | 1ppts |
| Shareholders GWS coverage ratio over GPCR (%) | 267 | 280 | (13)ppts |
| Total GWS coverage ratio over GPCR (%) | 200 | 203 | (3)ppts |
* Includes IFRS shareholders’ equity and contractual service margin net of tax and other adjustments.
Notes
The summary financials presented above are the key financial metrics Prudential’s management use to assess and manage the performance and position of the business. In addition to the metrics prepared in accordance with IFRS standards – IFRS profit after tax and IFRS shareholders’ equity – additional metrics are prepared on alternative bases. The presentation of these key metrics is not intended to be considered a substitute for, or superior to, financial information prepared and presented in accordance with IFRS Standards. The definitions of the key metrics we use to discuss our performance in this press release are set out in the “Definition of performance metrics” section in our half year results document, including, where relevant, references to where these metrics are reconciled to the most directly comparable IFRS measure. All metrics used by management to assess performance (along with IFRS profit after tax) are presented before deduction of the amount attributable to non-controlling interest. This presentation is applied consistently throughout this announcement.
Balance sheet metrics are presented net of non-controlling interests.