Prudential PLC 

Prudential PLC (LSE: PRU) is listed under FTSE 100 index and engaged in providing health & life insurance and asset management products across Africa and Asia.

H1 FY24 Results (for the six months ended 30 June 2024, as of 28 August 2024)

New Business Profit Growth

• The Company's new business profit reached USD 1,468 million, reflecting an 8% increase on a constant exchange rate basis. When adjusting for economic impacts, the growth was slightly reduced to 1%. This marks a steady improvement compared to the previous year’s performance, highlighting the company's ability to maintain profitability amidst economic fluctuations.

Dividend and Share Buyback Initiatives

• A notable development is the increase in the first interim dividend to 6.84 cents per share, up from 6.26 cents in the previous year, representing a 9% rise. Additionally, the company has embarked on a USD 2 billion share buyback program, with £150 million ($192 million) already allocated towards repurchasing 22 million shares. These actions signal a commitment to returning value to shareholders while managing capital effectively.

Financial Stability and Equity

• The Company's EEV shareholders' equity showed a slight decrease to 1,644 US cents per share from 1,650 US cents per share at the end of 2023. However, the ratio of free surplus to required capital remains strong at 232%, although it has slightly decreased from 242% previously. The GWS shareholder capital surplus stands at USD 15.2 billion, with a coverage ratio of 282%, indicating robust financial health.

Strategic Execution and Market Performance

• The Company's strategy for 2024 includes a targeted new business profit growth of 15-20% annually, with a focus on cash generation. This follows a notable 47% increase in new business profit in 2023, driven by a rebound in Hong Kong. Performance across various markets, including Hong Kong, Malaysia, and Singapore, remains strong, with a strategic emphasis on quality recruitment and enhanced digital platforms to bolster growth.

Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Prudential PLC (LSE: PRU) was trading at the current market price of GBX 657.10  (as of 30 August 2024, 11:11 AM GMT+1)

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 30 August 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.