Prudential reported first-quarter annual premium equivalent (APE) sales of $1.8bn, up 6% on a constant currency basis. New business profit rose 10% to $686mn.
New business margins improved by 2 percentage points to 38%, reflecting a continued focus on higher-quality growth.
Eastspring’s funds under management stood at $269bn at the end of March, down from $278bn at the end of 2025, reflecting negative market and foreign exchange movements despite net inflows.
The group launched a $1.2bn share buyback in January and repurchased $312mn of shares during the first quarter.
The shares fell 1.2% in early trading.
Our view
We said back in March that things would need to accelerate if Prudential wants to hit its new targets. But, while trends are still pointing in the right direction, we were hoping to see slightly punchier results. To be fair, new business profits are just about in line with the bottom end of 2026 guidance (double-digit growth), but that’s a good clip below the medium-term target (15-20% growth).
The business offers life and health insurance, as well as asset management, across a range of Asian countries. Hong Kong operations boast a market-leading position for products aimed at visitors from mainland China. We’re pleased to see last year’s strong growth continue. Price increases seem to have landed without too much disruption, volumes are moving up, and the combination has been positive for margins.
Medium-term initiatives include investment across several core areas, including technology, and creating a more joined-up customer approach across the product ranges. Benefits are already being felt, with sales agents becoming more profitable and AI driving higher sales by improving customer journeys.
Looking ahead, the broader Asian and Indian regions should benefit from economic development. Insurance uptake is also low in areas like Asia, and in many cases, state provisions for pensions and social security are limited. In India, health insurance is moving from a longer-term opportunity to execution: Prudential has announced plans for a standalone health insurer, and we see opportunities in these underpenetrated markets.
China has been a challenging market, where Prudential mainly operates through joint ventures, but the winds are shifting. It’s only around 10% of the business, but momentum has improved after strong performance in recent periods. Profits are still lagging, so this remains an area to watch.
Prudential also has a big asset management business, Eastspring, which manages around $270bn of assets. It offers a host of investment solutions as well as managing premiums generated from the life insurance business. New business has been good, driven by a mix of demand for Asian exposure and performance from its fixed-income products.
Capital levels are strong, and the group’s committed to increasing the dividend by more than 10% through to 2027, as well as accelerating the pace of its ongoing buyback. But this isn't a high-yielder like some of its UK-listed peers, and nothing is guaranteed.
The refreshed strategy brings with it some bold goals, and progress looks good. We think Prudential's Asian focus and higher growth opportunities give a different option for a UK investor. Momentum needs to step on from here; early signs are encouraging, but any slips could push targets out of reach.
Environmental, social and governance (ESG) risk
The financials sector is medium-risk in terms of ESG. Product governance is the largest risk for most companies, especially those in the US and Europe with enhanced regulatory scrutiny. Data privacy and security is also an increasingly important risk for banks and diversified financial firms. Business ethics, ESG integration and labour relations are also worth monitoring.
According to Sustainalytics, Prudential’s management of material ESG issues is strong.
Prudential trains sales employees annually on responsible marketing and has strong policies for data privacy and security. The company invests in digital products to enhance customer experience but does not disclose customer complaint details. While it offers thorough training on ethics and corruption, and also provides whistleblower protections, Prudential lacks ethical risk assessments in investment and product development.
Prudential key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.