Prudential plc Q4 FY2024 earnings call

• 2024 was a year of good progress with new business profit growing 11% to $3.1 billion, gross operating free surplus generation $2.6 billion, and adjusted operating profit after tax up 8% per share. • Focus on three pillars: customer, distribution, and health; building and modernizing capabilities through investments and digitizing core operations. • Progress in agency channel with 4,000 more agents activated in H2 2024. • Plan to establish a joint venture in India with HCL Group for a health insurance business. • Increased dividends per share by 13%, launched $2 billion share buyback program with completion brought forward to end 2025. • Evaluating potential listing of ICICI Prudential Asset Management company, intending to return net proceeds to shareholders.

No specific product segment financial performance with revenue contribution % detailed in the transcript.

• 2025 guidance: Expect growth in new business profit, operating earnings per share, gross operating free surplus generation, and dividends per share in excess of 10%. • Confident 2025 is inflection point for free surplus, pro forma free surplus ratio above guided range upper end. • Guidance for 2027 gross operating free surplus objective of at least GBP 4.4 billion.

• Regulatory changes in markets like Hong Kong, Singapore, etc., could impact business. • Uncertainties around BEPS/OECD minimum tax rates and their potential impact on effective tax rates. • Negative operating variances due to expense overruns in certain markets (Africa, Laos, Myanmar, Cambodia) and need to manage cost containment.

Q: High confidence in OFSG inflection and dividend implications.

A: Ben discussed OFSG growth, confidence in acceleration due to new business cycle stacking, and dividend linked to capital management.

Q: New business margin, seasonality, India health business.

A: Anil and Ben discussed margin drivers, seasonality in markets, and details on India health JV.

Q: Capital dynamics, health pricing regulation, Hong Kong business.

A: Ben and Anil addressed capital requirements, health pricing repricing, and Hong Kong business growth and quality.

Q: China business, duration gap, new business margin.

A: Ben and Angel provided details on China's asset liability duration, margin changes, and business strategy.

Q: Capital management, traditional embedded value, ICICI Indian business.

A: Ben and Anil discussed capital framework, traditional embedded value grading, and impact of ICICI Indian business on free surplus.

Q: Agency, NPS, IRRs, OFSG, capital allocation.

A: Anil and Ben addressed agency growth, NPS progress, IRR improvement, OFSG variance containment, and capital allocation for value crystallization