Prudential Earnings: Marginally Beats Consensus but Tracking a Little Light vs. Strategic Target

Prudential reported a broadly decent set of results for the first half. New business profit of $1.47 billion was marginally better than the $1.46 billion estimated by company-compiled consensus. However, it does leave the business looking a little light versus the 2027 target. Most core markets recorded a half-on-half decline in new business profit. For example, new business profit in China was down 33% as the business altered its product mix and changing economics had an outsize impact. Sales in terms of annual premium equivalent also declined in Hong Kong. While that is against a strong comparison as the border reopened in the prior year, mainland visitor traffic has not been maintained. Active monthly agent numbers in Hong Kong grew.