Prudential Plc Q2 FY2025 earnings call

• Strong financial performance with double-digit growth in key metrics, reaching an inflection point in operating free surplus generation.
• Completed share repurchase program by end of 2025 and expects to return over $5 billion to shareholders between 2024-2027.
• Progressing through strategic transformation launched in 2023, with $400 million invested in targeted initiatives like modernizing technology and processes.
• Agency strategy focuses on quality recruitment, career progression, and digital capabilities. Bancassurance focuses on strategic relationships and training.
• Building on health transformation efforts to accelerate growth in health and protection sales.

Prudential achieved double-digit growth across key financial metrics in the first half of 2025. New business profit grew 12%, adjusted operating profit per share grew 12%, gross operating free surplus generation grew 14%, and dividends per share increased 13%. Key market segment performances included 16% growth in the Hong Kong market and 34% growth in the Indonesia market. The agency channel is a primary distribution channel with one of the largest forces in the Asian insurance industry, and bancassurance had 14 markets with double-digit growth in new business profit.

• Expected to return over $5 billion to shareholders between 2024 and 2027, including completion of existing share repurchase program by end of 2025.
• Guidance for ordinary dividend per share growth of greater than 10% each year from 2025 to 2027.
• Expect core operating variances to return to historic positive levels in 2027.
• Confident in achieving 2027 financial objectives with continued focus on quality new business and capital management.

• Macro environment volatility.
• Regulatory changes impacting agent retention and income in some markets.
• Industry-related challenges in markets like Malaysia and Vietnam affecting agency performance.
• Risks associated with the progress of strategic initiatives and market-specific challenges.

Q: Regarding the agency business, especially in Mainland China, what's the outlook and progress on quality recruitment and change management?

A: In Mainland China, a change management program is in place with new recruits up 45%, and the PRUVenture quality recruitment program launched. Active agents are up 6%, and the agency channel is expected to complement bancassurance performance.

Q: How are the capital management amounts determined, and what about the potential IPO of India Asset Management business?

A: Capital management amounts are determined based on sustained annual net capital generation and review by the Board. The timing and quantum of returns from the India AMC IPO are subject to regulatory restrictions and will be provided in due course.