Prudential announces growth, dividend hike, and capital return plans

Prudential plc announced a 12% increase in new business profit to $1.26bn and a 14% rise in operating free surplus to $1.56bn for the first half of 2025. This strong performance, driven by broad-based growth across 13 of its 19 life insurance markets, is in line with the company's full-year targets for 2025. Consequently, the board approved a first interim dividend of $0.0771 per ordinary share, a 13% increase from 2024, payable on October 16, 2025.

The company is enhancing shareholder returns with guidance for over 10% ordinary dividend per share growth for 2025-2027 and additional capital returns through share buybacks of $500m in 2026 and $600m in 2027. These initiatives are part of a refined capital allocation framework aimed at a total return orientation, with over $5bn expected to be returned to shareholders from 2024-2027. Prudential also intends to return initial net proceeds from the potential IPO of ICICI Prudential Asset Management Company Limited.

Prudential's capital position remains robust, with an estimated shareholder GWS capital surplus over GPCR of $16.2bn and a coverage ratio of 267% as of June 30, 2025. The company emphasizes consistent execution of its strategy, focusing on enhancing customer experiences, technology-powered distribution, and transforming its health business model, with notable progress in agent productivity and bancassurance new business profit across its key markets.