| Prudential plc (“Prudential”; HKEX: 2378; LSE: PRU) today announced its financial results for the year ended 31 December 2024. |
| Performance highlights on a constant exchange rate basis unless otherwise stated. |
| All new business profit growth rates in this report are reported on a constant exchange rate basis, and excluding interest rate and other economic movements, unless otherwise stated. |
- New business profit of $3,078 million, up 11 per cent. Including the effects of interest rates and other economic movements, new business profit was broadly flat. TEV's new business profit is also up 11 per cent.
|
- Operating free surplus generated from in-force insurance and asset management business of $2,642 million (2023: $2,706 million) was in line with the shape of free surplus generation we set out from 2022 to 2027. We continue to invest in improving our operating model, to build capabilities and create value, including through addressing variances.
|
- Adjusted operating profit before tax increased 10 per cent to $3,129 million. Adjusted operating profit after tax increased by 7 per cent to $2,582 million. Earnings per share based on adjusted operating profit was 89.7 cents per share, representing an increase of 8 per cent consistent with 2023 (before the adjustment in respect of the non-controlling interest in our Malaysia conventional life business).
|
- Group EEV equity of $44.2 billion (2023: $45.3 billion on an actual exchange rate basis) is equivalent to 1,664 cents per share (2023: 1,643 cents per share on an actual exchange rate basis).
|
- Strong capital position with a free surplus ratio of 234 per cent and GWS shareholder surplus over GPCR of $15.9 billion, equivalent to a cover ratio of 280 per cent. Allowing for the share buyback programme completion, payment of the 2024 second interim dividend and the commencement of the new bancassurance arrangement in Indonesia, the free surplus ratio would be 204 per cent.
|
- Completed $1,045 million (123 million shares) in share buybacks as of 14 March under our $2 billion programme announced in June 2024. This programme is now expected to be completed by the end of 2025 rather than our original guidance of mid-2026.
|
- 2024 total dividend of 23.13 cents per share, up 13 per cent, with 2024 second interim dividend of 16.29 cents per share. Including share buybacks total shareholder returns in FY24 were $1.4 billion.
|
| Commenting on the results, CEO Anil Wadhwani, said: “In 2024 we made good progress in executing on our strategy to improve our operational capabilities and deliver growth. Our financial performance was in line with our guidance, with new business profit up 11 per cent and operating free surplus generated of $2,642 million. On a traditional embedded value (TEV) basis, which we will be converting to from Q1 2025, new business profit also grew 11 per cent in the year. The long-term growth trends inherent in our Asia and Africa markets are reasserting themselves, creating significant opportunities for us. Insurance penetration rates in Asia are low and there is continued, and growing, demand for long-term savings and protection products across our markets, alongside a need for wealth management and retirement planning, particularly in our higher-income Asian markets. |
| "We are well positioned to capitalise on this growth opportunity. Our focus is on writing quality new business alongside managing our in-force business and improving variances by enhancing operational delivery and serving our customers’ needs. We have seen good progress in 2024 with improved cash signatures for new business, growth in the number of active agents in the second half and actions undertaken to improve our variances through implementing better health claims management, improving persistency and modernising our IT infrastructure to capture economies of scale. |
| “The dividend for 2024 is up 13 per cent on a per share basis and amounts to just over $600 million. This is alongside the $785 million we returned to shareholders in 2024 through our $2 billion share buyback programme, which we have accelerated to complete by the end of 2025 ahead of our original mid-2026 schedule. We have also announced that we are evaluating a potential listing of ICICI Prudential Asset Management Company Limited involving the partial divestment of our shares in that company, subject to market conditions, requisite approvals and other considerations. It is intended that following the completion of such a divestment, the net proceeds would be returned to shareholders. These initiatives underscore our disciplined capital management based on the clear framework communicated in June 2024 and our focus on improving shareholder returns. We intend to update you on our capital management plans at our half-year 2025 Results in August.” |
|
Key summary financials |
2024 $m |
2023 $m |
Change on
AER basis |
Change on a CER basis (and for NBP only excluding interest rate and other economic movements) |
| New business profit |
3,078 |
3,125 |
(2)% |
11% |
| Operating free surplus generated from in-force insurance and asset management business |
2,642 |
2,740 |
(4)% |
(2)% |
| Group EEV equity* |
44,218 |
45,250 |
(2)% |
n/a |
| Adjusted operating profit before tax |
3,129 |
2,893 |
8% |
10% |
| Adjusted operating profit after tax |
2,582 |
2,449 |
5% |
7% |
| IFRS profit after tax |
2,415 |
1,712 |
41% |
43% |
| IFRS shareholders’ equity* |
17,492 |
17,823 |
(2)% |
n/a |
|
| * Balance sheet metrics are presented after deduction of non-controlling interests. For 2024 non-controlling interests include the 49 per cent non-controlling interest in our conventional life business in Malaysia. |
| Annual Results Document |
| Prudential plc's results for the year ended 31 December 2024 are available to view on the Prudential corporate website at https://www.prudentialplc.com/investors and have been submitted in full unedited text to the Financial Conduct Authority's National Storage Mechanism and will shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism. |
| For the full document click the link below: |
| Prudential Plc |
| Stay ahead of the curve! Subscribe to InsidEntity for daily updates on all your favourite companies. |
