Prudential's profit growth slows to 8 percent in first half

Prudential's new business profit rose 8 per cent to US$1.38 billion in the first half of the year, down from the 12 per cent growth rate it posted in the same period of 2024.

The British insurer announced a US$300 million share buy-back to be completed by December alongside the results on Thursday.

Profit growth decelerates

The slower expansion comes as the market braces for a potential fall in mainland Chinese visitors to Hong Kong, which could test insurer performance in one of their largest markets.

New business profit, a key metric tracking the future profitability of newly written life insurance policies, for the six months ended 30 June matched analysts' estimates. The 8 per cent rise compared with US$1.26 billion recorded in the first half of 2024, when the metric had surged 12 per cent.

Adjusted operating profit increased 9 per cent to US$1.81 billion, or 58.4 US cents per share.

Sales up 3 per cent

Annual premium equivalent sales, a major sales indicator combining regular and single premiums, rose 3 per cent to US$3.42 billion, up from US$3.29 billion in the same period last year.

The buy-back announcement came alongside the slower profit growth amid market concerns over a potential pullback in mainland Chinese visitors to Hong Kong.

Source: South China Morning Post