Prudential reported an 8% rise in new business profit to US$1.38 billion in the first half of 2026 on a constant exchange rate basis, driven by strong results outside mainland China [1, 2, 3]. Hong Kong's new business profit grew 8% to US$581 million, while Malaysia saw a 46% surge to US$70 million over the same period [1, 3]. Meanwhile, mainland China's new business profit declined 4% to US$159 million due to a shift toward lower-margin products and regulatory changes increasing bank distribution costs [1, 3].
Excluding mainland China, new business profit rose 10% on a constant exchange rate basis [1, 3]. Annual premium equivalent sales increased 3% to US$3.42 billion, up from US$3.29 billion in the previous year, according to Prudential's financial data [2]. Adjusted operating profit rose 9% to US$1.81 billion, or 58.4 US cents per share, for the first half of 2026 [2].
Prudential declared an interim dividend of 8.88 US cents per share and announced it was expanding its 2026 share buyback programme by US$300 million, raising the total to US$1.5 billion [1, 2, 3]. The company’s shares in Hong Kong closed 1.5% lower at HK$109 following reports of a new 20% personal income tax on returns from Hong Kong insurance policies for mainland customers, stemming from regulatory changes in early August [1].
Prudential CEO Anil Wadhwani said the demand drivers among mainland Chinese customers remain intact, including a need for investment diversification and health protection. "That gives us the confidence that the growth, as well as the demand coming from Chinese mainland for Hong Kong policies, will continue in the second half of this year," he said [1]. A Prudential representative added the company remains "confident in the structural growth prospects of our Hong Kong business" despite uncertainties around the new tax enforcement [3].
The results reflect Prudential's financial position as of June 30, 2026, the end of the first half reporting period [1, 2, 3]. Investors will watch closely how the new tax measures might impact Hong Kong policy demand across the remainder of 2026.
