Prudential targets 9% to 13% growth in H2 2024

However, analysts raised concerns about the impact of non-controlling interests.

Prudential’s management expressed confidence in meeting growth targets of between 9% and 13% for the second half of the year (H2 2024), which they noted would be easier to achieve given the softer comparative period, reported Jefferies Equity Research. 

However, analysts raised concerns about the impact of non-controlling interests, particularly after the group’s recent legal setback in Malaysia, which may reduce shareholder benefits from hitting these targets.

The group also addressed concerns about its cash signature, particularly regarding the back-end loaded free surplus release in 2023. 

This was largely attributed to high sales of long-duration Hong Kong cross-border savings products. 

Management expects the cash signature to normalise through a reduction in pent-up demand in Hong Kong, price increases in health and protection products, and a shift from with-profits to shareholder-backed participating contracts.

Prudential's new 15-year bancassurance deal in Indonesia, targeting the country's large Muslim population with takaful products, was also discussed. Whilst the deal is not exclusive, Prudential will be the preferred provider.

Lastly, Prudential is focusing on reforming its corporate culture. Management said it aims to strengthen connections across its regional units through its Target Operating Model, addressing concerns about the group's previously federated structure and fostering better cross-regional collaboration.