PRU(US:PUK)2024-08-28 10:44Financial Data and Key Metrics Changes - New business profit for the first half of 2024 grew by 8% to 1.5 billion, building on a strong growth rate of 47% in the first half of 2023 [1][16] - Gross operating free surplus generation was in line with expectations, with a 9% growth in operating profits [2][21] - The first interim dividend for 2024 was announced at 188 million, up by 9% compared to the previous year [3][21] Business Line Data and Key Metrics Changes - Bank assurance new business profit increased by 28%, contributing to the overall growth in health and protection and savings new business profit [2][10] - Health and protection new business profits grew by 15%, supported by strong bank assurance relationships [10][11] - In Indonesia, new business profits reduced by 18% due to regulatory changes impacting investment-linked products [27] Market Data and Key Metrics Changes - APE (Annual Premium Equivalent) grew by 6% in the first half of 2024, following a 37% increase in 2023 [3][16] - Hong Kong saw a 9% growth in new business profit on an ex-economics basis, despite a year-on-year reduction in sales [24][25] - Singapore's new business profit increased by 12% year-on-year, driven by agency and bank assurance sales growth [26] Company Strategy and Development Direction - The company aims to create long-term sustainable value for stakeholders, with a focus on enhancing customer experience and operational efficiency [4][7] - A multi-year strategy is in place, with ongoing investments in technology and talent to drive quality sustainable growth [5][39] - The company is repositioning its business in China to adapt to regulatory and macroeconomic changes, with early signs of improvement [6][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving strategic and financial objectives for 2027, supported by broad-based sales momentum [4][17] - The outlook for the second half of 2024 is positive, with expectations of continued growth as base effects from 2023 ease [3][23] - Management highlighted the importance of disciplined capital deployment to ensure sustainable shareholder returns [2][18] Other Important Information - A $2 billion share buyback program was launched in June 2024 as part of the capital return framework [3][18] - The company is investing in digital capabilities and technology to enhance customer engagement and operational efficiency [7][40] - A shift to a traditional embedded value (TEV) basis for reporting will begin in the first quarter of 2025, enhancing transparency [44][47] Q&A Session Summary Question: What are the expectations for new business profit growth? - The company maintains a compound annual growth rate (CAGR) objective of 15% to 20% for new business profit from 2022 to 2027, despite recent economic challenges [46][47] Question: How is the company addressing regulatory changes in China? - The company has taken proactive measures to reposition its business in China, including repricing and adjusting product offerings to align with regulatory changes [6][12] Question: What is the outlook for the health business? - The health business is expected to be a significant growth driver, with ongoing investments in new products and pricing strategies to ensure long-term sustainability [12][28]