Prudential’s H1 2024 IFRS profit declines YoY

It dwindled 80.8% to $182m.

Prudential’s net profit for the first six months of the year (H1 2024) was cut by 80.8% year-on-year (YoY) to $182m, mainly due to decreases seen in new business and operations.

New business profit marginally fell by 1.4% YoY to $1.5b, excluding economic impacts, it grew by 8.0% YoY.

Earnings per share stood at 4.4 cents, contracting 87.2% YoY.

“This followed exceptional growth of 47% (excluding economic impacts) in new business profit for the full year 2023, resulting from the strong rebound in Hong Kong after the removal of COVID 19 restrictions and the opening of the border with the Chinese Mainland,” chief executive officer Anil Wadhwani said. 

Wadhwani emphasised the company's strategic clarity and commitment to achieving a 15-20% CAGR in new business profit and double-digit cash generation by 2027. 

Prudential's H1 2024 was supported by repositioning in the Chinese Mainland, early medical repricing in Indonesia and Malaysia, and strong performance in Singapore, India, and Taiwan. The company is focused on improving cash conversion, managing operational variances, and leveraging scale. 

Whilst agency new business profit declined due to high 2023 base effects, bancassurance saw a 28% increase in new business profit, particularly in Hong Kong, Malaysia, Singapore, Taiwan, and Thailand.

Sales momentum picked up in June and is expected to continue into H2 2024. Prudential anticipates new business profits to grow at a pace aligned with its 2022 to 2027 targets, supported by strong demand in Asia and Africa for protection, long-term savings, and retirement products.