保诚(02378) - 2023 - 中期财报

Market Presence and Customer Base - Prudential operates in 14 Asian life insurance markets, ranking in the top three in 12 of them, and in 8 African markets, ranking in the top three in 4 of them[9] - Prudential has 18 million customers who trust the company for their financial and health solutions[9] - In China, the company has established a strong relationship with CITIC, enabling access to over 80% of GDP and operations in 100 cities[12] - The company operates in all 11 cities of the Greater Bay Area, covering a population of over 85 million[12] - In ASEAN, the company has over 40,000 active agents, accounting for 60% of the group's total active agents[12] - Prudential has over 70,000 active agents in Asia, with 7,000 qualifying for the Million Dollar Round Table (MDRT) membership[13] - Prudential has over 200 bank partners, including 10 strategic partners, and aims to increase bank insurance new business profit by 1.5 to 2 times by 2027[13] - Prudential Africa has established over 1,000 partnerships with banks, digital platforms, telecoms, and intermediaries[50] Financial Performance and Strategy - The company manages over $220 billion in assets through its internal investment capabilities[9] - Prudential aims to address the unmet needs of approximately 4 billion people in Asia and Africa[11] - The company plans to focus on enhancing customer experience, technology-driven distribution, and health business model transformation as part of its strategy[11] - Prudential's strategy includes organizational model changes to improve sales quality and economic value generation[11] - The company will invest in growth engines across Greater China, ASEAN markets, India, and Africa[11] - Prudential's financial model emphasizes compound growth driven by new business, with embedded value translating into free surplus for reinvestment and distribution[11] - The company has revised its purpose to "Protect every life, Build every future" to better align with its long-term goals and stakeholder value[10] - Prudential's new CEO, Anil Wadhwani, conducted a comprehensive strategic and operational review in his first six months, leading to the announcement of revised strategies and priorities[9] - The company's market size is expected to more than double, creating nearly$1 trillion in growth opportunities[12] - The company aims to achieve top-quartile Net Promoter Score (NPS) by 2027, with a current retention rate nearing 90%[12] - The company is focusing on personalized customer acquisition through data and technology to improve lead quality[12] - The company is building integrated solutions combining products with health, wellness, and financial services[12] - The company is leveraging a unified, scalable technology platform to create seamless end-to-end customer journeys[12] - The company is enhancing self-service capabilities through PruServices for handling queries, services, and claims[12] - The company aims to double the new business profit per agent and increase agent new business profit by 2.5 to 3 times by 2027[13] - The company plans to increase the penetration rate of its two main strategic bank partners from 8% in 2022 to 9-11% by 2027[13] - Prudential's health insurance business generated over $2 billion in gross written premiums in 2022[13] - The company aims to double its health insurance new business profit from 2022 to 2027 and achieve a top-quartile Net Promoter Score (NPS) by 2027[13] - Prudential manages over$220 billion in assets across 11 markets through its investment arm, Eastspring Investments[15] - The company targets a 55% reduction in weighted average carbon intensity by 2030 as part of its responsible asset ownership strategy[15] - The company's new business strategy aims to achieve a threefold return on capital invested, with an internal rate of return exceeding 25% and a payback period of less than four years[16] - Over the past decade, new business has driven a $27 billion increase in the group's embedded value, with European embedded value nearly doubling[16] - The company plans to invest$1 billion in core capabilities, focusing on customer, distribution, health, and technology sectors[16] - The company targets a 15% to 20% compound annual growth rate (CAGR) in new business profits over the next five years (2022-2027)[16] - The company aims for a double-digit CAGR in operating free surplus from in-force insurance and asset management businesses over the next five years (2022-2027)[16] - New business profits increased by 39% in the first half of 2023, with 16 life insurance markets recording double-digit growth, led by Hong Kong[19] - The agency channel generated $1.002 billion in new business profits, a 74$1.507 billion[19] - The company's assets under management increased by 3% to $227.7 billion as of June 30, 2023, reflecting inflows from external clients and favorable market movements[20] - The company's adjusted IFRS operating profit for the first half of 2023 was$1.462 billion, a 6% increase year-over-year, driven by a 14% rise in asset management business[20] - The company's IFRS post-tax profit for the first half of 2023 was $947 million, compared to a loss of$1.511 billion in the same period last year[20] - Annual Premium Equivalent (APE) sales for CITIC-Prudential Life in mainland China decreased by 17% to $394 million in H1 2023, primarily due to a decline in bancassurance sales, partially offset by double-digit growth in agency sales and higher health and protection APE sales[23] - New business profit for CITIC-Prudential Life in mainland China declined by 16$171 million in H1 2023, impacted by lower sales and unfavorable economic factors, though the new business margin remained stable at 43%[23] - Agency APE sales for CITIC-Prudential Life in mainland China grew by 25% in H1 2023, with active agent productivity increasing by over 50%, and over 800 agents achieving Million Dollar Round Table (MDRT) qualification[25] - CITIC-Prudential Life expanded its retirement planning health benefit network to cover 22 institutions across 7 cities in mainland China, with sales of lifetime protection products doubling year-over-year[24] - Hong Kong APE sales surged over fourfold to $1.027 billion in H1 2023, driven by cross-border traffic recovery and strong local growth of 68$670 million in H1 2023, supported by higher APE sales and favorable channel mix, though the new business margin declined by 28 percentage points to 65%[26] - Prudential Hong Kong's agency APE sales grew over sixfold in H1 2023, accounting for over 72% of total APE sales, with active agents increasing by 75% and agent productivity rising 2.8x[30] - Prudential Hong Kong launched a new comprehensive multi-critical illness product in H1 2023 and expanded its presence in the Greater Bay Area by opening a Macau branch[29] - Indonesia APE sales increased by 36% to $150 million in H1 2023, with new business profit rising 17$61 million, though the new business margin declined by 6 percentage points to 41%[31] - Prudential Indonesia upgraded its flagship medical insurance rider in H1 2023, introducing popular telemedicine benefits and traditional medicine treatments[32] - Agency channel annual premium equivalent (APE) sales increased by 51% in 2022, driven by improved sales management models and enhanced training programs[33] - Bancassurance channel APE sales grew by 15% in H1 2023, with new business profit increasing by 14% due to higher sales from Privilege Banking clients[33] - Indonesia's APE sales surged by 42% to $150 million in H1 2023, supported by double-digit growth in both agency and bancassurance channels[33] - Malaysia's APE sales rose by 12$185 million in H1 2023, with new business profit increasing by 11%[35] - Singapore's APE sales declined by 3% to $386 million in H1 2023, impacted by challenging interest rate conditions, though health and protection APE sales grew by 11$198 million in H1 2023, reflecting lower sales of lump-sum premium products and adverse economic factors[38] - The company launched a new Islamic health and protection product (PruBSN Damai) and a Shariah-compliant ESG fund (Takafulink Dana ESG Global) to cater to evolving customer needs[36] - A new investment-linked savings product (PruElite Plus) was introduced for affluent clients, and a prenatal care plan (PruMY Child Plus) was launched for young families[36] - The bancassurance channel in Malaysia saw strong growth, with over 90,000 credit card customers transitioning to a new credit card repayment protection plan[37] - The company expanded its corporate benefits business, covering 3,000 SMEs and over 200,000 employees, with APE sales increasing by 17% in H1 2023[39] - Annual Premium Equivalent (APE) sales increased by 10% to $885 million in the first half of 2023 compared to the same period in 2022[40] - New business profit rose by 4$316 million in the first half of 2023, with a new business margin of 36%[40] - Bank insurance APE sales declined by 10% in the first half of 2023 due to reduced lump-sum premium dividend business[41] - Regular premium products APE sales grew by 49% in the first half of 2023, accounting for over 86% of total APE sales[41] - Over 75% of policies are processed through instant underwriting systems, improving efficiency and reducing processing time[42] - Agency channel APE sales grew by 2% in the first half of 2023, with a 7% increase in the second quarter compared to the first quarter[43] - India's APE sales increased by 15% in the first half of 2023, driven by a highly diversified distribution network[44] - Thailand's APE sales grew by 20% in the first half of 2023, supported by strong bank insurance and employee benefit contributions[45] - Vietnam's APE sales decreased by 18% in the first half of 2023, outperforming the overall market decline of 31%[46] - Philippines' APE sales increased by 13% in the first half of 2023, driven by growth in the agency channel[48] - Africa's annual premium equivalent sales increased by 31% in the first half of 2023, with all eight markets achieving double-digit growth[50] - The number of active agents in Africa grew by 18% compared to the same period last year[50] - Total assets under management or advisory by Eastspring reached $227.7 billion, a 3$1.9 billion in the first half of 2023[51] - The life insurance business recorded net inflows of $1.4 billion, offset by net outflows of$7.1 billion from funds managed for M&G plc[51] - 59% of managed funds outperformed their benchmarks on a three-year basis, up from 41% in June 2022[51] - The adjusted operating profit was $146 million, with a fee margin of 31 basis points, an increase of 3 basis points from the previous year[51] - The cost/income ratio improved to 53$1.462 billion in the first half of 2023, driven by reduced central costs and increased profit from asset management business Eastspring[56] - Group IFRS post-tax profit totaled $947 million, a significant improvement from a loss of$1.511 billion in the first half of 2022, mainly due to smaller interest rate declines in 2023 compared to 2022[56] - Adjusted shareholders' equity increased to $36.4 billion as of June 30, 2023, up from$35.2 billion at the end of 2022, driven by a 3% increase in IFRS shareholders' equity and a 4% increase in contract service margin[56] - The company's leverage ratio remained near the lower end of its target range at 20% as of June 30, 2023[56] - Shareholder surplus above the group's prescribed capital requirement was estimated at $15.5 billion as of June 30, 2023, with a coverage ratio of 295$1 billion in enhancing core capabilities across customer, distribution, and health strategic pillars between 2023 and 2025[56] - The board approved an interim dividend of 6.26 cents per share, compared to 5.74 cents per share in 2022[56] - The company expects annual dividend growth of 7% to 9% in 2023 and 2024[56] - New business profit increased by 39% to $1.489 billion, driven by a 42$2.155 billion, with a return on embedded value of 10%[57] - Embedded value as of June 30, 2023, was $43.7 billion, up from$42.2 billion at the end of 2022[57] - Operating free surplus generated from insurance and asset management businesses decreased by 2% to $1.438 billion[57] - New business investment increased to$414 million, reducing the total operating free surplus from life insurance and asset management businesses to $1.024 billion[57] - The company implemented IFRS 17 for insurance contracts, resulting in an$1.8 billion increase in group shareholders' equity at the transition date[57] - Adjusted operating profit for 2022 decreased by $653 million to$2.722 billion under IFRS 17[57] - The S&P 500 index rose by 16%, while the MSCI Asia ex-Japan index increased by 2% and the Hang Seng Index fell by 4%[57] - The US 10-year yield decreased by 8 basis points to 3.81%[57] - Adjusted operating profit per share increased by 11% to 45.2 cents[60] - Adjusted operating profit for the Group under IFRS was $1.462 billion, an increase of 6$164 million, driven by growth in savings product sales and improved claims experience[61] - Adjusted operating profit in Hong Kong decreased by 7% to $554 million, due to lower net investment returns and reduced favorable claims experience following the lifting of COVID-19 restrictions[61] - Adjusted operating profit in Indonesia decreased by 4$109 million, reflecting adverse morbidity experience related to medical reimbursement products post-COVID-19 restrictions[62] - Adjusted operating profit in Malaysia decreased by 10% to $165 million, mainly due to normalization of claims experience as medical cases returned to pre-pandemic levels[62] - Adjusted operating profit in Singapore decreased by 16$270 million, reflecting the impact of adverse market movements in 2022 on contract service margin (CSM) and investment balances[63] - Adjusted operating profit for growth markets and other segments increased by 16% to $374 million, supported by higher CSM release due to new business growth and product mix changes[63] - CSM release under IFRS 17 was$1.178 billion in H1 2023, with an annualized release rate of approximately 11%, consistent with the rate in 2022[63] - Risk adjustment release was $107 million, reflecting non-market risks expiring during the period, with a stable proportion relative to the opening balance[63] - Net investment performance was$612 million, down from $632 million in H1 2022, primarily due to the impact of lower asset values at the beginning of 2023 following adverse market movements in 2022[64] - Contractual Service Margin (CSM) increased by$1.956 billion in the first half of 2023, driven by $1.196 billion from profitable new business and$760 million from CSM releases[66] - The CSM balance at the end of the period was $20.82 billion, reflecting an annualized growth rate of 8$88.7 billion, up 9% year-over-year[67] - Total funds under management and advisory reached $227.7 billion, a 2$1.9 billion in H1 2023, compared to a net outflow of $1.8 billion in the same period last year[68] - Adjusted operating profit for Eastspring increased by 14$146 million in H1 2023[68] - The fee margin based on operating income improved by 31 basis points to 31 basis points in H1 2023[68] - The cost/income ratio improved by 2 percentage points to 53% in H1 2023[67] - Central costs (excluding restructuring and IFRS 17 implementation costs) decreased by 11% in the first half of 2023, reflecting targeted reductions in headquarters costs and benefits from the redemption of a senior debt instrument in January 2023[69] - Core structural borrowing interest payable decreased by $18 million in the first half of 2023 compared to the previous period[69] - Restructuring costs were$92 million in the first half of 2023, down from $152 million in the same period in 2022, primarily due to the ongoing IFRS 17 project and one-time costs related to business regulation[69] - The effective tax rate on adjusted operating profit was 15% in the first half