PRU(PUK) - 2024 Q4 - Annual Report

Financial Performance - Adjusted operating profit for 2024 was $3,129 million, an increase of 8% from 2023[11] - Basic earnings per share based on IFRS profit after tax rose to 84.1 cents, a 35% increase compared to 2023[11] - Group adjusted operating profit after tax for 2024 was$ 2.58 billion, a 7% increase compared to 2023[120] - The Group's total IFRS profit after tax for 2024 was $2,415 million, up from$ 1,691 million in 2023[198] - New business profit increased by 11% to $3,078 million, driven by higher APE sales and a greater proportion of health and protection business[192] Sales and Growth - APE sales reached$ 6,202 million, reflecting a 6% increase from 2023[12] - Present value new business premiums (PVNBP) increased to $30,612 million, a 7% rise year-over-year[12] - New business profit growth was 11%, within the guidance range of 9% to 13%[32] - Bancassurance new business profit increased by 31% to$ 872 million, driven by sales growth and a favorable product mix, particularly in health and protection products[114] - APE sales through the bancassurance channel grew 16% in 2024 to $2,532 million, with new business profit increasing by 31%[147] Customer Engagement and Retention - Prudential serves over 18 million customers, focusing on enhancing customer experiences to build deeper relationships[80] - Customer retention rates increased by 1% to 87% in 2024, with a target of 90-95% by 2027[130] - The customer retention rate stands at 87%, indicating strong potential for growth in existing customer relationships[168] Capital Management and Shareholder Returns - Prudential announced a$ 2 billion share buyback program, with $785 million completed by the end of December 2024, ahead of the original guidance of mid-2026[40] - The Group announced a$ 2 billion return of excess capital through share buybacks, expected to complete by the end of 2025[126] - A total dividend of 23.13 cents per share was approved for 2024, representing a 13% increase[123] - The Board approved a 2024 second interim cash dividend of 16.29 cents per share, reflecting a 13% increase from 2023's total dividend of 23.13 cents per share[41] Strategic Initiatives and Market Opportunities - Prudential's strategy aims to capture a growth opportunity of approximately $1 trillion in its markets over the next 10 years[64] - The company aims for a 15% to 20% CAGR for new business profit from 2022 to 2027[26] - The company plans to generate at least$ 4.4 billion of operating free surplus from in-force insurance and asset management business by 2027[180] - The Group plans to achieve a compound average growth rate of 15-20% for new business profit from 2022 to 2027[197] Market Penetration and Growth Potential - Life insurance penetration in many markets is currently only around 2-3%, indicating significant health, protection, and savings gaps[36] - In Greater China, life insurance penetration is at 2%, with an estimated health and protection gap of $805 billion[70] - Africa's life insurance penetration is less than 2%, presenting high-growth potential in the region[72] - The ASEAN markets have a combined population of over 650 million, with low life insurance penetration rates of 1%[74] - India has a life insurance penetration rate of 3% and a health protection gap estimated at over$ 350 billion[76] Operational Efficiency and Digital Transformation - The introduction of PRUServices in Malaysia led to a doubling of registrations within the year compared to the previous platform[82] - The enhanced customer digital servicing platform, PRUServices, saw a doubling in registrations compared to the previous platform[133] - In 2024, annualized savings of over $30 million were achieved in Indonesia through improved medical claims cost management[160] Environmental and Social Responsibility - The Group aims for a 55% reduction in weighted average carbon intensity (WACI) by 2030 against a 2019 baseline[181]