Prudential plc

Prudential reported 2025 new business profit growth of 12%, adjusted operating profit after tax per share growth of 12%, gross OFSG growth of 15%, and dividend per share growth of 15%. Ben Bulmer said return on embedded value increased to 15%, gross OFSG was up 15% year on year, net OFSG was up 22%, the free surplus ratio ended the year at 221% or 204% excluding IPO net proceeds, and NBP margin expanded 2 percentage points to 42%. Management also said new business profit grew in every quarter of 2025, the addition to 2027 capital emergence increased 16%, and the company remains on track for its 2027 objectives. For 2026, guidance is again for double-digit growth across key financial KPIs; management said the 2026 release rate will be in the late 9.4s versus 9.5s, core solvency is 150% and comprehensive solvency is about 234% pro forma for the recent perpetual debt issuance, required capital should grow at low-double-digit rates of 12% to 13%, and investment in capabilities is expected to be $300 million to $350 million in 2026 with little expected in 2027.

Anil Wadhwani described 2025 as a landmark year and said the group’s multi-market, multichannel model is producing high-quality growth and stronger shareholder returns. He emphasized that transformation execution is sharpening, with agency transformation the #1 priority, while bancassurance continues to deliver strong momentum. He was upbeat about the outlook, saying Prudential will carry 2025 momentum into 2026 and remains firmly on track for 2027 financial objectives.

Ben Bulmer focused on the financial quality of the year: 15% ROEV, 15% gross OFSG growth, 22% net OFSG growth, a 221% free surplus ratio, and a 42% NBP margin. He said the balance sheet is highly robust, the S&P upgrade to AA recognized financial strength, and the company plans to return capital through ordinary dividends, buybacks, IPO proceeds, and additional returns. He also said underlying variances materially improved year over year and are now close to neutral excluding capability investment, with a return to positive operating variances expected within the objective period.

Analysts pressed on whether China and Hong Kong growth could be sustained, given China’s strong second-half momentum and Hong Kong’s slower second half. Management said China’s bancassurance and agency both improved, with CITIC branch specialization helping, while Hong Kong was affected by regulatory changes in the broker channel; they stressed quality, long-tenure products, and said they expect both agency and the broader Hong Kong business to grow in 2026. Questions on agency weakness led to a detailed response on PRUVentures, productivity, recruitment, and technology; management said agency is behind expectations but is being reshaped through professional recruitment schemes, compensation changes, and AI-enabled tools like PruAction. Analysts also asked about capital remittances and variances, and Ben said he is not leaving excess capital in subsidiaries, variances are close to neutral excluding capability spend, and he expects north of $200 million of variances in 2027.