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Highlights:
Prudential reports an 11% increase in new business profit for the first nine months of the year.
Growth driven by expansion in markets such as China, Southeast Asia, and Africa.
The company proceeds with its $2bn share buyback program, having repurchased 66 million shares by the end of October.
Prudential, (LSE:PRU) the UK-based FTSE 100 insurer, has posted a strong performance in its third-quarter trading update, reporting an 11% rise in new business profit for the first nine months of the year. The company generated £2.35 billion in new business profit, driven by broad-based growth across its global markets. Significant contributions came from regions such as Greater China, Southeast Asia (ASEAN), and Africa, where Prudential’s multi-channel distribution model has proven successful in driving growth.
In addition to the growth in new business profit, Prudential’s Annual Premium Equivalent (APE) sales increased by 7% on a constant exchange rate basis, reaching $4.64 billion (£3.6 billion) for the period. CEO Anil Wadhwani noted that the company’s regional expansion in key markets, such as China and Southeast Asia, continued to support its growth trajectory.
The insurer’s strategy, which focuses heavily on expanding its footprint in Asia and Africa, remains a core element of its business model. Prudential’s approach has been reinforced by its recent partnership with Bank Syariah Indonesia, the largest Islamic lender in Indonesia, which will grant Prudential access to a customer base of approximately 20 million individuals. This partnership is seen as a key development in Prudential’s broader expansion strategy in Southeast Asia.
Furthermore, Prudential has made significant progress on its share buyback program, having repurchased 66 million shares for £437 million by the end of October. This is part of the company’s broader $2 billion share repurchase initiative, which is intended to return value to shareholders while enhancing the overall financial position.
Despite these positive developments, Prudential’s stock has experienced a decline of around 24% year-to-date, partly reflecting the broader slowdown in Asian economies. However, the company’s focus on growth in key emerging markets remains a central component of its long-term strategy.
