Financial Performance - Adjusted operating profit for the first half of 2020 was $2.541 billion, a decrease of 3% compared to $2.619 billion in the same period of 2019[4]. - Operating free surplus earned was $1.979 billion, reflecting a 2% increase from $1.943 billion year-over-year[4]. - New business profit from life insurance dropped significantly to $1.160 billion, down 45% from $2.125 billion in the first half of 2019[4]. - IFRS post-tax profit was $534 million, a decline of 54% compared to $1.158 billion in the previous year[4]. - Net cash remittances from business units were $432 million, a 60% decrease from $1.093 billion in the first half of 2019[4]. - The total dividend for 2020 is estimated to be around $420 million, equivalent to approximately $0.161 per share, contingent on market conditions and financial performance[15]. - The profit before tax from continuing operations was $729 million, down 50% from $1,444 million in the first half of 2019[150]. - The total comprehensive income from continuing operations for the first half of 2020 was $311 million, compared to $3,343 million in the first half of 2019[154]. Capital and Liquidity - Total capital surplus above the group's minimum capital requirement was $12.4 billion as of June 30, 2020, up from $9.5 billion at the end of 2019[5]. - Shareholder equity under IFRS was $19.1 billion, with a per share value of $0.732, compared to $19.5 billion and $0.749 per share at the end of 2019[5]. - The group maintained a healthy liquidity position without breaching any covenants on core structural borrowings[23]. - As of June 30, 2020, the group's central liquidity reached $1.9 billion, with undrawn committed financing of $2.6 billion[23]. - The company has a committed liquidity resource of $2.6 billion available until 2025, ensuring it can meet cash demands without external financing[124]. Strategic Initiatives - The company announced plans for a complete separation of Jackson to focus on high-growth markets in Asia and Africa[11]. - The group successfully executed key strategic goals, including a significant bancassurance agreement with TMB in Thailand, reaching over 9 million customers[12]. - The group plans to fully separate and divest Jackson to focus on high-growth markets in Asia and Africa, maintaining dual primary listings in London and Hong Kong[12]. - The company is focusing on strategic priorities, including leveraging opportunities in its Asian business, which is seen as resilient[20]. - Prudential plans to accelerate the scale of its profitable activities to align with existing market access channels[14]. Digital Transformation - The digital health app Pulse has been launched in 11 markets, with over 8.1 million downloads since its introduction a year ago[12]. - The company has adapted to a digital sales environment, conducting over 20,000 remote meetings since March[12]. - Prudential is increasing the use of digital services and technology in its product offerings to meet changing customer needs, accelerated by the COVID-19 pandemic[93]. - The number of users adopting the Prudential Pulse app continues to rise, reflecting a shift towards virtual face-to-face sales methods in most markets[93]. Market Challenges - The annualized premium equivalent sales in Asia decreased by 45% in Q2 compared to the same period last year, while the decline in Q1 was 24%[17]. - The annualized premium equivalent sales in mainland China dropped by 64% in the first half of the year, with new business profit declining by 67%[17]. - The overall business performance showed resilience despite the challenges posed by COVID-19, with all business segments performing well[19]. - The company anticipates a decline in sales of fixed annuities and indexed annuities in the short term due to current interest rate drops, compared to 2019 levels[20]. Risk Management - The group faces various risks, including financial, operational, regulatory, and environmental, social, and governance risks, which could impact financial performance and brand reputation[112]. - The company is focusing on managing risks associated with ongoing operations to ensure it remains within its risk tolerance[88]. - Prudential has established a governance framework to clarify risk responsibilities and align risk management with business objectives[109]. - The group conducts stress and scenario testing, including reverse stress testing, to assess capital adequacy and ensure solvency needs are met[110]. Community and Social Responsibility - The company has allocated over $1.8 million from a $2.5 million COVID-19 fund to support vulnerable communities and healthcare facilities in Asia and Africa[12]. - Prudential's community initiatives aim to reach over 100,000 people in Africa through support from the COVID-19 relief fund[19]. - The company emphasizes the importance of ethical conduct in meeting customer needs and expectations[139]. Regulatory Environment - The group is monitoring regulatory developments related to the governance and ethical use of technology and data as the insurance industry increasingly adopts emerging technological tools and digital services[141]. - The implementation of IFRS 17 is expected to introduce significant changes to the recognition of profits, with the revised standard coming into effect in 2023[144]. - Prudential is adopting risk management and mitigation measures to address regulatory risks, including conducting risk assessments of business plans and closely monitoring the operating environment[143].
保诚(02378) - 2020 - 中期财报