Prudential (LSE:PRU) reported an 8% rise in new business profit to $1,384 million for the six months ended 30 June, with margins expanding two percentage points to 40%.
The Asia and Africa-focused life insurer and asset manager also lifted adjusted operating profit before tax 9% to $1,812 million, while adjusted earnings per share rose 17% to 58.4 cents, on a constant exchange rate basis.
Operating free surplus generated from in-force business climbed 15% to $1,791 million, and Group total embedded value (TEV) equity reached $39.1 billion, up from $37.8 billion at the end of December.
Prudential is adding roughly $0.3 billion to its existing $1.2 billion 2026 share buyback programme, subject to proceeds from a planned reduction in its ICICI Prudential Asset Management stake. Total capital returned to shareholders reached $1.0 billion in the first half, and the first interim dividend rose 15% to 8.88 cents per share.
"The strength of our performance is giving us the capacity to invest in long-term growth opportunities while increasing returns to shareholders," said chief executive Anil Wadhwani.
The group increased its stake in its Malaysia life business to 70% and agreed to acquire a 75% stake in Bharti Life in India, alongside launching a standalone Indian health business in the third quarter. New business profit in ASEAN grew 13%, while performance in the Chinese Mainland was hit by new bancassurance expense-control regulations; management expects full-year new business profit there to be similar to 2025.
Prudential reiterated guidance for double-digit growth in new business profit, Gross OFSG, adjusted EPS and dividend per share for the full year.
News Intelligence what this means for the company
Prudential delivered 8% new business profit growth and 9% adjusted operating profit growth in H1, with margins expanding and capital generation up 15%, supporting a 15% dividend increase to 8.88 cents per share and a $0.3 billion boost to its $1.2 billion buyback programme. The expansion reflects strong execution in ASEAN (13% new business profit growth) and successful capital deployment into India—a 75% stake in Bharti Life and a new standalone health business—though Mainland China remains pressured by regulatory expense controls.
The combination of double-digit earnings growth, margin expansion, and rising capital returns (dividend up 15%, buyback enlarged) demonstrates Prudential's ability to fund growth in high-return Asian markets while rewarding shareholders. The regulatory headwind in China and execution risk on the India expansion are material, but H1 momentum and management's reiterated full-year guidance for double-digit growth across all key metrics suggest the company is tracking to deliver on its strategic pivot toward Asia and emerging markets.
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