S&P says rapid expansion could weaken Prudential outlook

Prudential will likely keep a strong capital buffer and steady profit growth.

Prudential plc’s outlook could weaken if capital or earnings deteriorate due to faster-than-expected expansion, sustained margin pressure or more aggressive shareholder payouts, S&P Global Ratings said.

Prudential plc will likely keep a strong capital buffer and steady profit growth over the next two years as it expands across Asia and other emerging markets.

The agency said the insurer’s stronger capital position should be enough to meet upcoming growth needs and withstand market volatility. 

It expects Prudential’s continued repricing and product mix changes to support stable margins and value generation, helped by efforts to improve agent productivity and grow bank distribution.

For the first nine months of 2025, Prudential’s new business profit rose 12% to US$1.96 billion, supported by higher sales and better margins.

S&P also highlighted the loss-absorbing capacity within Prudential’s Hong Kong with-profits funds, which provide an extra buffer through ring-fenced structures and flexible bonus adjustments during stress.

The stable outlook reflects expectations that Prudential will retain its competitive position in Asia and Africa and maintain excellent financial strength.