2026-03-26 10:32Financial Performance - Prudential achieved a new business profit of $2,782 million in 2025, reflecting a 12% increase on a constant exchange rate basis[7]. - Adjusted operating profit before tax increased by 5% to $3,306 million, while adjusted operating profit after tax grew by 7% to $2,772 million[8]. - IFRS profit after tax surged by 71% to $4,119 million, with basic earnings per share based on IFRS profit increasing by 83% to 154.2 cents[8]. - Total segment profit increased to $3,939 million, reflecting a 6% growth from $3,723 million in 2024[125]. - The insurance business generated a profit of $3,610 million, a 6% increase from $3,419 million in 2024[131]. - New business profit increased by 12% to $2,782 million, driven by higher APE sales and positive pricing effects, with double-digit growth in each quarter of 2025[150]. - Total insurance business APE sales reached $6,661 million in 2025, a 7% increase from 2024, while new business profit rose by 13%[151]. - The new business margin improved to 42% in 2025, up from 40% in 2024, reflecting a focus on higher-margin products[152]. - Operating profit from the insurance business increased to $5,066 million, with a 16% rise in profit from in-force business to $2,284 million[154]. - The effective tax rate on adjusted operating profit was 16%, consistent with the 17% rate in 2024[146]. Shareholder Returns - Total dividend for 2025 was 26.60 cents per share, marking a 15% increase compared to 2024[7]. - The company plans to grow ordinary dividends by more than 10% in both 2026 and 2027, alongside additional capital returns including $500 million in share buybacks in 2026[161]. - The Group plans to return over $7 billion to shareholders from 2024 to 2027, including $500 million in share buybacks in 2026 and $600 million in 2027[54]. - Shareholders' equity rose from $17.5 billion at the beginning of 2025 to $20.1 billion by year-end, reflecting a profit of $4.0 billion during the period[159]. - The Group's total cash dividends for 2025 increased by 15% to 26.60 cents per share, compared to 23.13 cents per share in 2024[171]. Capital Management - Prudential completed a $2 billion share buyback in 2025 and commenced an additional $1.2 billion buyback in 2026[7]. - The Group issued SGD 600 million subordinated debt in May 2025, contributing $462 million to available capital[181]. - The Group maintained a total of $1.5 billion in undrawn committed facilities as of December 31, 2025, which expire in 2031[184]. - The company launched a $1.2 billion share buyback program in January 2026, comprising $500 million of recurring capital returns and $700 million from the IPO of IPAMC[122]. - The free surplus ratio was 221% at the end of 2025, down from the previous year due to capital returns, with a target operating range of 175-200%[121]. Business Growth - Prudential aims to grow new business profit at a compound annual growth rate of 15–20% from 2022 to 2027, targeting at least $4.4 billion in operating free surplus generation by 2027[30]. - In 2025, Prudential achieved a 12% growth in new business profit, exceeding the guidance of over 10%, supported by a 6% increase in APE sales and margin expansion[36]. - Bancassurance new business profit increased by 27% to $1,033 million in 2025, driven by a 5 percentage point margin increase and successful partnerships[42]. - Prudential's agency channel delivered new business profit of $1,560 million, up 4% from the prior year, with a 15% increase in agent productivity[40]. - New business profit in Mainland China grew by 27%, driven by strong APE sales growth and a focus on top-performing outlets[45]. - Prudential's growth markets collectively delivered a 12% increase in new business profit, with significant contributions from Taiwan and Thailand[48]. - New business profit in Hong Kong reached $1,221 million in 2025, a 12% increase from $1,091 million in 2024[196]. - APE sales in Hong Kong increased to $2,221 million in 2025, representing an 8% growth from $2,063 million in 2024[196]. Operational Efficiency - The company achieved a customer retention rate of 88%, up 1 percentage point from the previous year, with a target of 90-95% by 2027[97]. - The proportion of new business processed through auto-underwriting reached 70% by December 2025, indicating a significant shift towards digital self-service[101]. - The introduction of a generative AI-led performance management platform (PruAction) in Singapore aims to enhance agent productivity and is set for rollout to additional markets in 2026[62]. - The Group's focus on quality recruitment and upskilling initiatives led to a 15% increase in monthly new business profit per active agent in 2025[63]. - The company introduced a Health AI chatbot in Singapore to enhance sales team efficiency, supporting over 48,000 active health agents in priority markets[95]. Asset Management - Prudential's Asia-based asset management business, Eastspring, manages over $277 billion in funds and ranks in the top 10 in six markets[31]. - Eastspring's funds under management and advice increased by 8% from $258.0 billion at December 31, 2024, to $277.7 billion at December 31, 2025, driven by positive inflows and market movements[49]. - Operating free surplus generated from in-force insurance and asset management business rose by 15% to $3,059 million[7]. - Total expected transfer from in-force business and return on existing free surplus was $3,029 million, reflecting a 13% increase from 2024[165]. Market Recognition - The company was recognized as one of the 'Best Companies to Work for in Asia' for the fourth consecutive year, reflecting its commitment to a high-performance culture[200].