Prudential (NYSE: PUK) posts Q1 growth and advances $1.2B buyback
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Prudential plc reported another quarter of double-digit growth in Q1 2026 new business profit. On a constant exchange rate basis, new business profit rose 10% to $686 million, while APE sales increased 6% to $1,823 million. New business margins improved to 38%, up 2 percentage points.
Growth was broad-based, with double-digit new business profit increases in Hong Kong, Mainland China and Malaysia, supported by higher health and protection sales and product repricing. Eastspring’s funds under management were $268.9 billion at 31 March 2026, down from $277.7 billion at year-end, mainly due to adverse markets and currency moves.
The Group is executing a previously announced $1.2 billion share buyback for 2026, comprising $500 million of recurring capital returns and $700 million of IPO proceeds from ICICI Prudential Asset Management Company. In Q1 2026 it repurchased about 20 million shares for $312 million.
Positive
- Double-digit profit growth with margin expansion: Q1 2026 new business profit rose 10% at constant exchange rates to $686 million, with APE sales up 6% and new business margins increasing 2 percentage points to 38%, indicating both volume growth and improved profitability.
- Large ongoing share buyback: Prudential is executing a $1.2 billion buyback in 2026 and has already repurchased about 20 million shares for $312 million, signalling active capital returns alongside business growth.
Negative
- Assets under management impacted by markets: Eastspring’s funds under management declined to $268.9 billion at 31 March 2026 from $277.7 billion at 31 December 2025, largely due to adverse market and foreign exchange movements during a volatile period.
Insights
Prudential combines solid Q1 growth with an active $1.2B buyback.
Prudential plc delivered Q1 2026 new business profit of $686 million, up 10% at constant exchange rates, with APE sales up 6% to $1,823 million and margins rising to 38%. This mix of higher volumes and better pricing suggests disciplined growth in more profitable products.
Regional commentary highlights double-digit new business profit growth in Hong Kong, Mainland China and Malaysia, with some margin pressure in product areas focused on savings and participating business. Eastspring funds under management fell from $277.7 billion to $268.9 billion, reflecting market and FX volatility rather than outflows.
The company is in the middle of a $1.2 billion share buyback for 2026, and has already repurchased around 20 million shares for $312 million. Together with its stated ambition for double-digit growth and 2027 free surplus targets, this update underlines a strategy balancing organic expansion with capital returns.
Key Figures
New business profit: $686 million
APE sales: $1,823 million
New business margin: 38%
+5 more
8 metrics
New business profit
$686 million
Q1 2026, up 10% at constant exchange rates
APE sales
$1,823 million
Q1 2026, up 6% at constant exchange rates
New business margin
38%
Q1 2026, 2 percentage point increase year-on-year
Eastspring FUM
$268.9 billion
31 March 2026 vs $277.7 billion at 31 December 2025
Share buyback size
$1.2 billion
Buyback to be executed during 2026
Shares repurchased
20 million shares; $312 million
Repurchases completed in Q1 2026 under the 2026 buyback
NBP growth AER
13%
Q1 2026 new business profit growth on actual exchange rate basis
APE growth AER
9%
Q1 2026 APE sales growth on actual exchange rate basis
Key Terms
Annual premium equivalent (APE) sales, New business profit, Traditional Embedded Value (TEV), operating free surplus, +2 more
6 terms
New business profit financial
"NBP is measured in accordance with our Traditional Embedded Value (TEV) methodology..."
Traditional Embedded Value (TEV) financial
"NBP is measured in accordance with our Traditional Embedded Value (TEV) methodology..."
operating free surplus financial
"delivering in 2027 at least $4.4 billion of operating free surplus generation..."
Internationally Active Insurance Group regulatory
"given Prudential's designation as an Internationally Active Insurance Group;"
forward-looking statements regulatory
"This announcement contains 'forward-looking statements' with respect to certain of Prudential's..."
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the
month of April, 2026
PRUDENTIAL PUBLIC LIMITED COMPANY
(Translation
of registrant's name into English)
13/F, One International Finance Centre,
1 Harbour View Street, Central,
Hong Kong, China
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports
under
cover Form 20-F or Form 40-F.
Form
20-F X
Form 40-F
Indicate
by check mark whether the registrant by furnishing the
information
contained
in this Form is also thereby furnishing the information to
the
Commission
pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes
No X
If
"Yes" is marked, indicate below the file number assigned to the
registrant
in
connection with Rule 12g3-2(b): 82-
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NEWS RELEASE
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29
April 2026
PRUDENTIAL PLC Q1 2026 BUSINESS PERFORMANCE UPDATE
Another quarter of consistent double-digit new business profit
growth
Performance highlights on a constant exchange rate basis for the
three months ended 31 March 2026 (Q1):
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Q1 new business profit was up 10 per cent compared with the prior
year to $686 million with growth across all segments.
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Q1 APE sales grew 6 per cent to $1,823 million over the same
period.
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New business margin increased 2 percentage points.
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Commenting on the results, CEO Anil Wadhwani
said: "In
the first three months of 2026, we once again demonstrated our
continued delivery of double-digit new business profit growth.
Performance was broad-based across segments, with higher APE sales
and improved new business margins, reflecting our disciplined
execution and continued focus on driving high-quality
growth.
"The quarter reinforced the strength of
our multi-channel, multi-market business model, with resilient
performance despite ongoing market volatility and geopolitical
uncertainty. Similar to the outcome in full-year 2025,
bancassurance delivered
strong year-on-year growth in both volumes and margins, with
continued traction across key markets. We
continue to progress our agency transformation programme with a
focus on quality
recruitment and actions to improve agent productivity, including
the rollout
of enhanced digital
tools. The agency channel continued to grow new business profit in
the first quarter.
"Through disciplined value creation, continued strengthening of our
distribution and a focus on enhancing customer experience we are
well positioned to capture structural growth opportunities across
Asia and Africa. We remain confident in delivering double-digit
growth across our key financial metrics in 2026 and achieving our
2027 financial objectives."
APE new business sales (APE sales) and TEV new business profit
(NBP)
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Three months ended 31 March
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2026
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2025 CER
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Change CER
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2025 AER
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Change AER
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NBP $m
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686
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625
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10%
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608
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13%
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APE Sales $m
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1,823
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1,725
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6%
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1,677
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9%
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NBP margin
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38%
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36%
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2 ppts
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36%
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2 ppts
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Comparatives on a constant exchange rate basis (CER) and actual
exchange rate basis (AER).
Market highlights for the three months ended 31 March
2026
(New business profit and APE sales growth rates are both on a
constant currency basis. See "Definitions of Performance Metrics"
below for more details. Discussions of changes in metrics refer to
comparisons of the first quarter of 2026 to the first quarter of
2025 unless otherwise stated.)
In the first quarter of the year, we saw higher new business profit
growth in each of our segments with Hong Kong, Mainland China and
Malaysia delivering double-digit growth.
Hong Kong saw
new business profit growth across both agency and bancassurance
channels and delivered an expansion in margins, with a higher
proportion of health and protection APE sales and repricing
actions. Our Mainland
China joint venture, CITIC
Prudential Life, continued the strong APE sales momentum seen in
the second half of 2025. As expected, the on-going focus on
participating business, as we rebalance the product portfolio, led
to a moderation in profit margins. Malaysia new
business profit growth was driven by agency and while volumes were
lower in our bancassurance business, margins increased as we
further optimised our product portfolio.
Indonesia saw
modest new business profit growth following on from the strong
performance seen in the prior period. The bancassurance channel
grew double-digit as we continued to build our partnership with
BSI, while in the agency channel we remain focussed on quality
recruitment to drive activation levels. In Singapore,
we again saw good growth in APE sales particularly through the
agency channel, reflecting customer demand for savings and wealth
products. As in 2025, these shifts in product mix have reduced
margins, leading to more modest growth in new business profit. We
are taking targeted actions to broaden our health and protection
offerings and to address previously announced changes in co-payment
requirements on certain health insurance plans.
Growth in our "Growth markets and
other" segment was led by our
business in Thailand, which saw continuing strong demand for
savings products, and our associate in India, ICICI Prudential
Life. While overall performance in Taiwan moderated after the
strong growth delivered in recent periods, we are pleased with
progress in the broker channel.
Overall, Eastspring saw net inflows in the period, led by
positive flows from the Group's insurance business, demonstrating
the scale and continuity provided by our integration of life
insurance and asset management capabilities. Eastspring's funds
under management (FUM) were $268.9 billion at 31 March 2026 (31
December 2025: $277.7 billion), with the reduction largely driven
by adverse market and foreign exchange movements given the market
volatility in the period. Eastspring's FUM includes contributions
from both its wholly owned and joint venture
businesses.
We have a multi-channel, multi-market business model which leads to
a high degree of diversification. We continue to monitor the impact
on consumers of the current geopolitical events, acknowledging that
some of our smaller ASEAN businesses are relatively more exposed to
the risk of higher inflation from higher energy prices. This could
impact consumer sentiment and buying behaviours in the
future.
Consistent with our disciplined capital return framework, we
launched a $1.2 billion buyback in January to be executed during
the course of 2026, comprising $500 million of recurring capital
returns and $700 million of net proceeds from the initial public
offering of ICICI Prudential Asset Management
Company. During
the first quarter of 2026 we repurchased approximately 20 million
shares for a total consideration of $312
million.
Contact:
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Media
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Investors/analysts
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Simon Kutner
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+44 (0)7581 023260
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Patrick Bowes
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+852 2918 5468
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Sonia Tsang
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+852 5580 7525
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William Elderkin
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+44 (0)20 3977 9215
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Janice Wong
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+852 6188 6381
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Ming Hau
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+44(0)20 3977 9293
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Bosco Cheung
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+852 2918 5499
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Tianjiao Yu
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+852 2918 5487
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About Prudential plc
Prudential provides life and health insurance and asset management
in Greater China, ASEAN, India and Africa. Prudential's mission is
to be the most trusted partner and protector for this generation
and generations to come, by providing simple and accessible
financial and health solutions. The business has dual primary
listings on the Stock Exchange of Hong Kong (HKEX: 2378) and the
London Stock Exchange (LSE: PRU). It also has a secondary listing
on the Singapore Stock Exchange (SGX: K6S) and a listing on the New
York Stock Exchange (NYSE: PUK) in the form of American Depositary
Receipts. It is a constituent of the Hang Seng Composite Index and
is also included for trading in the Shenzhen-Hong Kong Stock
Connect programme and the Shanghai-Hong Kong Stock Connect
programme.
Prudential is not affiliated in any manner with Prudential
Financial, Inc. a company whose principal place of business is in
the United States of America, nor with The Prudential Assurance
Company Limited, a subsidiary of M&G plc, a company
incorporated in the United Kingdom.
https://www.prudentialplc.com/
Metrics presented
This business performance update provides information on the
trading and sales development of the Group in
the three
months ended 31 March 2026. This update focuses on annual premium
equivalent (APE) and new business profit (NBP), which are key
metrics used by the Group's management to assess and manage the
development and growth of the business. APE sales are provided as
an indicative volume measure of transactions undertaken in the
reporting period that have the potential to generate profits for
shareholders. NBP is measured in accordance with our Traditional
Embedded Value (TEV) methodology and reflects the value of future
profit streams which are not fully captured in shareholders' equity
in the year of sale under IFRS. Under this methodology, new
business profit is determined using long-term economic assumptions
at the start of the year and on operating assumptions at the start
of the quarter being reported on. More details on the Group's TEV
methodology is contained in the TEV basis results section of the
Group's Annual Report 2025.
The presentation of these key metrics is not intended to be
considered as a substitute for, or superior to, financial
information prepared and presented in accordance with IFRS. Further
information about these metrics including a reconciliation of TEV
shareholders' equity at 31 December 2025 to the most directly
comparable IFRS measure can be found in the Group's
Annual Report
2025.
Definitions of Performance Metrics
Annual premium equivalent (APE) sales
A measure of new business activity that comprises the aggregate of
annualised regular premiums and one-tenth of single premiums on new
business written during the period for all insurance
products.
Eastspring total funds under management or advice
Total funds under management or advice including external funds
under management, money market funds, funds managed on behalf of
M&G plc and internal funds under management or
advice.
New business profit
Presented on a post-tax basis, on business sold in the period
calculated in accordance with Group TEV methodology.
Traditional Embedded Value (TEV)
Financial results that are prepared on a supplementary basis to the
Group's IFRS results and are a way of measuring the current value
to shareholders of the future profits from life business written
based on a set of assumptions. Our TEV methodology is set out in
the Group's
Annual Report
2025.
Key financial metrics
Our three key financial metrics are new business profit, basic
earnings per share based on adjusted operating profit and operating
free surplus generated from in-force insurance and asset management
business.
2027 financial objectives
Our 2027 financial objectives are: growing new business profit over
the period 2022 to 2027 at a compound annual growth rate of 15-20
per cent; and delivering in 2027 at least $4.4 billion of operating
free surplus generation from in-force insurance and asset
management business. The objectives assume exchange rates at
December 2022 and are based on regulatory and solvency regimes
applicable across the Group at the time the objectives were set.
The objectives assume that the same TEV and free surplus
methodology will be applicable over the period and no material
change to the economic assumptions will occur.
Forward-looking statements
This announcement contains 'forward-looking statements' with
respect to certain of Prudential's (and its wholly- and
jointly-owned businesses') current plans, goals and expectations
relating to future financial condition, performance, results,
strategy and objectives. Statements that are not historical facts,
including statements about Prudential's (and its wholly- and
jointly-owned businesses') beliefs and expectations and including,
without limitation, commitments, ambitions and targets, including
those related to sustainability matters, and statements containing
words such as 'prospects', 'goals', 'may', 'will', 'should',
'could', 'continue', 'aims', 'estimates', 'projects', 'believes',
'intends', 'expects', 'plans', 'targets', 'commits', 'seeks' and
'anticipates', and words of similar meaning and the negatives of
such words, are forward-looking statements. These statements are
based on plans, assumptions, estimates and projections as at the
time they are made, and therefore undue reliance should not be
placed on them. By their nature, all forward-looking statements
involve risk and uncertainty.
A number of important factors could cause actual future financial
conditions, performance or other indicated results to differ
materially from those indicated in any forward-looking statement.
Such factors include, but are not limited to:
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current
and future market conditions, including fluctuations in interest
rates and exchange rates, sustained inflationary pressure
(including resulting interest rate increases), volatile or
sustained high or low interest rate environments, the escalation of
protectionist policies, the performance of financial and credit
markets generally and the impact of economic uncertainty, slowdown
or contraction;
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the
impact of global political uncertainties, geopolitical instability,
armed conflicts, and heightened geopolitical tensions, including
increased friction in cross-border trade and the exercise of laws,
regulations and executive powers to restrict or control trade,
financial transactions, capital movements and/or investment, as
well as related sanctions, trade restrictions, and other
governmental or regulatory measures, which may also impact
policyholder behaviour and reduce product
affordability;
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asset
valuation impacts arising from sustainability related
considerations;
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derivative
instruments not effectively mitigating any exposures;
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the
policies and actions of regulatory authorities, including, in
particular, the policies and actions of the Hong Kong Insurance
Authority, as Prudential's Group-wide supervisor, as well as the
degree and pace of regulatory changes and new government
initiatives generally;
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the
impact on Prudential of systemic risk and other group supervision
policy standards adopted by the International Association of
Insurance Supervisors, given Prudential's designation as an
Internationally Active Insurance Group;
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the
physical, social, morbidity, health and financial impacts of
climate change and global health crises (including pandemics), as
well as other catastrophic events, both natural and human-made,
which may impact Prudential's business, investments, operations and
its duties owed to customers;
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legal,
policy and regulatory developments in response to climate change
and broader sustainability-related issues, including the
development and interpretation of regulations, laws and standards
relating to sustainability reporting, disclosures and product
labelling (which may be inconsistent across jurisdictions and give
rise to conflicts of interpretation between approaches,
misrepresentation or compliance risks) on the one hand, and those
which may seek to limit the influence of sustainability
considerations on corporate activity on the other;
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the
collective ability of governments, policymakers, the Group,
industry and other stakeholders to implement and adhere to
commitments on mitigation of climate change and broader
sustainability-related issues effectively (including not
appropriately considering the interests of all Prudential's
stakeholders or failing to maintain high standards of corporate
governance and responsible business practices), and the challenges
presented by conflicting approaches in this regard;
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the
impact of competition and technological change, including the pace
of innovation, adoption, and changing customer
demands;
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the
effect on Prudential's business and results from mortality and
morbidity trends, lapse rates and policy renewal
rates;
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the
timing, impact, and realisation of intended benefits, if any, and
other uncertainties of future acquisitions or combinations within
relevant industries;
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the
impact of internal transformation projects and other strategic
actions failing to meet their objectives in a timely manner, or at
all, or adversely impacting the Group's operations or
employees;
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the
availability and effectiveness of reinsurance for Prudential's
businesses;
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the
risk that Prudential's operational resilience (or that of its
suppliers and partners) may prove to be inadequate, including to
prevent, respond to or recover from operational disruption arising
from external events;
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disruption
to the availability, confidentiality or integrity of Prudential's
information technology, digital systems and data, including
hardware and software (or those of its affiliates, suppliers,
service providers and partners), including the risk of
cyber-attacks, other data, information or security breaches and
challenges in integrating AI tools and the related security and
privacy considerations, which may result in financial loss,
business disruption and/or loss of customer services and data and
harm to Prudential's reputation;
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the
increased non-financial and financial risks and uncertainties
associated with operating joint ventures with independent
partners;
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the
impact of changes in capital, solvency standards, accounting
standards or relevant regulatory frameworks, and tax and other
legislation and regulations in the jurisdictions in which
Prudential and its affiliates operate; and
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the
impact of legal and regulatory actions, investigations and
disputes.
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These factors are not exhaustive.
Prudential operates in a continually changing business environment
with new risks emerging from time to time that it may be unable to
predict or that it currently does not expect to have a material
adverse effect on its business. In addition, these and other
important factors may, for example, result in changes to
assumptions used for determining results of operations or
re-estimations of reserves for future policy benefits. Further
discussion of these and other important factors that could cause
actual future financial conditions or performance to differ,
possibly materially, from those anticipated in Prudential's
forward-looking statements can be found under the 'Risk Factors'
heading of Prudential's 2025 Annual Report (or any US equivalent
filed with the US Securities and Exchange Commission), available on
its website at www.prudentialplc.com.
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Any forward-looking statements contained in this announcement speak
only as of the date on which they are made or in the case of any
document incorporated by reference, the date of the document.
Prudential expressly disclaims any obligation to revise or update
any of the forward-looking statements contained in this
announcement or any other forward-looking statements it may make,
whether as a result of future events, new information or otherwise
except as required pursuant to the UK's Public Offers and
Admissions to Trading Regulations (2024), the UK Prospectus Rules:
Admission to Trading on a Regulated Market, the UK Listing Rules,
the UK Disclosure Guidance and Transparency Rules, the Hong Kong
Listing Rules, the SGX-ST Listing Rules or other applicable laws
and regulations. Unless expressly stated otherwise, no statement
contained or referred to in this announcement is intended to be a
profit forecast or profit estimate.
Prudential may also make or disclose written and/or oral
forward-looking statements in reports filed with or furnished to
the US Securities and Exchange Commission, the UK Financial Conduct
Authority, the Hong Kong Stock Exchange, the Securities and Futures
Commission of Hong Kong and other regulatory authorities, as well
as in its annual report and accounts, other periodic financial
reports, proxy statements, offering circulars, registration
statements, prospectuses, prospectus supplements, press releases
and other written materials and in oral statements made by
directors, officers or employees of Prudential to third parties,
including financial analysts. All such forward-looking statements
are qualified in their entirety by reference to the factors
discussed under the 'Risk Factors' heading of Prudential's 2025
Annual Report (or any US equivalent filed with the US Securities
and Exchange Commission), available on its website
at www.prudentialplc.com.
Cautionary statements
This announcement does not constitute or form part of any offer or
invitation to purchase, acquire, subscribe for, sell, dispose of or
issue, or any solicitation of any offer to purchase, acquire,
subscribe for, sell or dispose of, any securities in any
jurisdiction nor shall it (or any part of it) or the fact of its
distribution, form the basis of, or be relied on in connection
with, any contract therefor.
NOT FOR DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR INTO
THE UNITED STATES OF AMERICA
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
Date:
29 April 2026
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PRUDENTIAL
PUBLIC LIMITED COMPANY
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By:
/s/ Ben
Bulmer
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Ben
Bulmer
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Chief
Financial Officer
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FAQ
How did Prudential (PUK) perform on new business profit in Q1 2026?
Prudential’s Q1 2026 new business profit reached $686 million, up 10% on a constant exchange rate basis from 2025. On an actual exchange rate basis, profit rose to $686 million from $608 million, a 13% increase, reflecting both higher volumes and better margins.
What were Prudential (PUK) Q1 2026 APE sales and growth rates?
In Q1 2026, Prudential reported APE sales of $1,823 million, representing 6% growth at constant exchange rates versus Q1 2025. On an actual exchange rate basis, APE sales increased from $1,677 million to $1,823 million, equating to 9% year-on-year growth in sales volumes.
How did Prudential’s new business margins change in Q1 2026?
Prudential’s Q1 2026 new business margin improved to 38%, up from 36% a year earlier, a gain of 2 percentage points. The uplift reflects a richer mix of health and protection business, pricing actions and product optimisation across several key Asian markets.
What is happening with Eastspring’s funds under management at Prudential (PUK)?
Eastspring’s funds under management were $268.9 billion at 31 March 2026, down from $277.7 billion at 31 December 2025. The reduction was largely driven by adverse market movements and foreign exchange effects amid volatility, despite net inflows led by Prudential’s insurance operations.
What are Prudential’s key financial objectives for 2027?
Prudential targets 15–20% compound annual growth in new business profit between 2022 and 2027 and at least $4.4 billion of operating free surplus generation in 2027 from in-force insurance and asset management. These objectives assume December 2022 exchange rates and unchanged methodologies.