Prudential (02378.HK) 2025 Full Year Performance: Achieving Double-Digit Growth and Enhancing Shareholder Returns

Prudential (02378.HK) announced its full-year 2025 results on March 18, demonstrating consistent high-quality growth across all four quarters of 2025. This growth is driven by broad-based expansion across multiple markets and channels. The group achieved double-digit growth in several key financial metrics, in line with its 2025 guidance. New business profit, calculated based on traditional embedded value, increased by 12% to $2.782 billion, with the new business profit margin rising by 2 percentage points to 42%. Operating free surplus generated by effective insurance and asset management businesses increased by 15% to $3.059 billion. Adjusted operating profit per share grew by 12% to 101.4 cents, and adjusted pre-tax operating profit increased by 5% to $3.306 billion. The total dividend for 2025 is 26.60 cents per share, a 15% increase, including a second interim dividend of 18.89 cents per share. The company implemented an optimized capital management framework to enhance shareholder returns.

It is expected to deliver over $7 billion in shareholder returns from 2024 to 2027, including a $2 billion share repurchase in 2025 and the initial public offering of ICICI Prudential Asset Management Company Limited (IPAMC). An additional $1.2 billion share repurchase is planned for 2026, with an estimated $1.3 billion in capital returns in 2027, comprising recurring capital distributions and net proceeds from the IPO of IPAMC. As of early 2026, the group has increased its stake in Malaysia’s traditional business to 70%. The group’s traditional embedded value equity stands at $37.8 billion, equivalent to 1,483 cents per share, a 15% increase (at actual exchange rates). The free surplus ratio is 221% (2024: 234%), exceeding the group’s regulatory capital requirements, with a regulatory shareholder surplus of $17.1 billion, representing a 262% coverage ratio.

CEO Anil Wadhwani stated, “2025 has been a strong year for Prudential, with double-digit growth reflecting a steady full-year momentum. Structural demand for our products from customers in Asia and Africa continues to rise, driven by increasing needs in protection, retirement, and wealth management. We are continuously digitizing our customer acquisition and service capabilities, which not only enhances agent productivity and engagement but also supports product innovation and improves customer experience. This is made possible by targeted investments in modernizing our technology platforms, data quality, and operational efficiency. We are further strengthening our multi-channel distribution model, continuously professionalizing our agency teams, and expanding our health and protection businesses based on successful bancassurance partnerships. Looking ahead, we remain focused on high-quality, sustainable growth, disciplined capital allocation, and creating long-term shareholder value. We are extending the growth momentum from 2025 into 2026 and are confident in achieving double-digit growth in key metrics, steadfastly working toward our financial targets for 2027.”