Prudential Plc reports strong set of results, with new business profit up 45%

Prudential plc (LON:PRU) has announced its financial results for the year ended 31 December 2023.

Performance highlights on a constant (and actual) exchange rate basis

–   New business profit up 45 per cent (43 per cent) to $3,125 million. Excluding the effect of interest rate and other economic movements, new business profit up 47 per cent (45 per cent)

–   Operating free surplus generated from in-force insurance and asset management business of $2,740 million (2022: $2,725 million ($2,760 million))

–   Adjusted operating profit up 8 per cent (6 per cent) to $2,893 million

–   EEV shareholders’ equity is up 7 per cent to $45.3 billion, equivalent to 1,643 cents per share, on an AER basis.

–   GWS shareholder capital surplus over GPCR of $16.1 billion, equivalent to a cover ratio of 295 per cent (31 December 2022: 307 per cent)

–   Second interim dividend of 14.21 cents per share, 20.47 cents per share for the full year, up 9 per cent

Commenting on the Results, CEO Anil Wadhwani, said: “These are a very strong set of results while operating in a challenging macro environment, with new business profit up 45 per cent driven by a relentless focus on execution in our markets in Asia and Africa. It is also an illustration of the strength of both our agency and bancassurance distribution channels as well as an affirmation of our leadership position in many key markets.

“It has been six months since the launch of our new strategy and it’s highly encouraging to see the early progress on our strategic objectives of improving our customer experience, driving technology powered distribution and transforming our business model in Health. We have on-boarded senior leadership talent in Health, Technology and added to our talent in our key markets as we continue to strengthen our capabilities in line with our strategic priorities.

“We delivered an excellent financial and operational performance in 2023 and deployed increased levels of capital in new business, enhancing core capabilities and expanding distribution. Sales growth has continued in the first two months of 2024. Given the relentless execution focus in implementing our strategy, we are increasingly confident in achieving our 2027 financial and strategic objectives and in accelerating value creation for our shareholders.”

Notes

The summary financials presented above are the key financial metrics Prudential’s management use to assess and manage the performance and position of the business. In addition to the metrics prepared in accordance with IFRS standards – IFRS profit after tax and IFRS shareholders’ equity – additional metrics are prepared on alternative bases. The presentation of these key metrics is not intended to be considered as a substitute for, or superior to, financial information prepared and presented in accordance with IFRS Standards. The definitions of the key metrics we use to discuss our performance in this press release are set out in the “Definition of performance metrics” section later in this document, including, where relevant, references to where these metrics are reconciled to the most directly comparable IFRS measure.

Further information on actual and constant exchange rate bases is set out in note A1 of the IFRS financial statement. All results are presented in US dollars.

IFRS Comparatives for 2022 have been restated to reflect the retrospective application of IFRS 17. See note A2.1 to the financial statements for further information and reconciliation.

We expect to announce our Full Year 2023 Results to the Hong Kong Stock Exchange and to the UK Financial Media at 12.00pm HKT – 4.00am UKT – 12.00am ET on Wednesday, 20 March 2024.

The announcement will be released on the London Stock Exchange at 3.00pm HKT – 7.00am UKT – 3.00am ET on Wednesday, 20 March.

A pre-recorded presentation for analysts and investors will be available on-demand from 12.00pm HKT – 4.00am UKT – 12.00am ET on Wednesday, 20 March 2024 using the following link: https://www.investis-live.com/prudential/65d35e48da722d0c002fb172/hsrt . A copy of the script used in the recorded video will also be available from 12.00pm HKT – 4.00am UKT – 12.00am ET on Wednesday, 20 March 2024 on Prudential plc’s website.

A Q&A event for analysts and investors will be held at 4.30pm HKT – 8.30am UKT – 4.30am ET on Wednesday, 20 March 2024. We offer the option to join us in person or virtually.

Registration to join the Q&A event in person, in the Four Seasons Hong Kong, 8 Finance Street, Central, Hong Kong

To register to attend the event in person, please respond to this message.

Registration to view the Q&A event online

To register to watch the event and submit questions online, please do so via the following link: https://www.investis-live.com/prudential/65d362b6d0d520120026534a/taer The webcast will be available to watch afterwards using the same link.

Dial-in details

A dial-in facility will be available to listen to the event and ask questions: please allow 15 minutes ahead of the start time to join the call (lines open half an hour before the call is due to start, ie from 4.00pm HKT – 8.00am UKT – 4.00am ET).

Dial-in: +44 (0) 20 3936 2999 (UK and international) / 0800 358 1035 (Freephone UK), Participant access code: 131313. Once participants have entered this code their name and company details will be taken.

Playback facility

Please use the following for a playback facility: +44 (0) 20 3936 3001 (UK and international), replay code 703056. This will be available from approximately 10.00pm HKT – 2.00pm UKT – 10.00am ET on Wednesday, 20 March until 6.59am HKT on Thursday, 4 April – 11.59pm UKT – 6.59pm ET on Wednesday, 3 April 2024.

Transcript

Following the call a transcript will be published on the results centre page of the Prudential plc’s website on Monday, 25 March.