Prudential reports another quarter of new business profit growth, shares fall

(Sharecast News) - Prudential reported another quarter of double-digit new business profit growth on Wednesday, with higher sales and improved margins across its Asia and Africa-focused business. The FTSE 100 insurer said new business profit rose 10% on a constant exchange rate basis to $686m in the three months ended 31 March, from $625m a year earlier.

On an actual exchange rate basis, new business profit increased 13% from $608m.

Annual premium equivalent sales rose 6% at constant exchange rates to $1.82bn, compared with $1.73bn a year earlier, and were up 9% on an actual exchange rate basis.

New business margin increased by two percentage points to 38%.

Chief executive Anil Wadhwani said Prudential had "once again demonstrated" consistent double-digit new business profit growth in the first quarter.

"Performance was broad-based across segments, with higher APE sales and improved new business margins, reflecting our disciplined execution and continued focus on driving high-quality growth," he said.

Prudential said new business profit increased in each of its segments, with Hong Kong, Mainland China and Malaysia delivering double-digit growth.

In Hong Kong, new business profit rose across both agency and bancassurance channels, with margins expanding as the mix shifted towards a higher proportion of health and protection sales and as repricing actions took effect.

In Mainland China, CITIC Prudential Life continued the strong sales momentum seen in the second half of 2025, although margins moderated as the joint venture focused on participating business while rebalancing its product portfolio.

Malaysia's new business profit growth was driven by agency, while bancassurance volumes were lower.

Prudential said margins in Malaysia increased as it further optimised the product portfolio.

Indonesia recorded modest new business profit growth after a strong prior period, with double-digit growth in bancassurance as Prudential continued to build its partnership with BSI.

In Singapore, APE sales grew, particularly through agency, reflecting demand for savings and wealth products, although the resulting product mix shift reduced margins and led to more modest growth in new business profit.

Wadhwani said the quarter reinforced the strength of Prudential's "multi-channel, multi-market business model" despite market volatility and geopolitical uncertainty.

"Similar to the outcome in full-year 2025, bancassurance delivered strong year-on-year growth in both volumes and margins, with continued traction across key markets," he said.

"We continue to progress our agency transformation programme with a focus on quality recruitment and actions to improve agent productivity, including the rollout of enhanced digital tools."

Growth in Prudential's "growth markets and other" segment was led by Thailand, where demand for savings products remained strong, and by its Indian associate ICICI Prudential Life.

Taiwan's overall performance moderated after strong growth in recent periods, although Prudential said it was pleased with progress in the broker channel.

Eastspring recorded net inflows during the period, led by positive flows from the group's insurance business.

Funds under management fell to $268.9bn at 31 March from $277.7bn at the end of December, largely reflecting adverse market and foreign exchange movements during the period.

Prudential said it continued to monitor the impact of geopolitical events on consumers, noting that some smaller ASEAN businesses were relatively more exposed to the risk of higher inflation from energy prices, which could affect sentiment and buying behaviour.

The group said it remained confident in delivering double-digit growth across its key financial metrics in 2026 and achieving its 2027 financial objectives.

"Through disciplined value creation, continued strengthening of our distribution and a focus on enhancing customer experience we are well positioned to capture structural growth opportunities across Asia and Africa," Wadhwani said.

Prudential launched a $1.2bn share buyback in January, comprising $500m of recurring capital returns and $700m of net proceeds from the initial public offering of ICICI Prudential Asset Management Company.

During the first quarter, it repurchased about 20m shares for total consideration of $312m.

At 0901 BST, shares in Prudential were down 1.06% at 1,103.7p.

Reporting by Josh White for Sharecast.com.

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