Prudential PLC Sees Modest Profit Growth Amid China Headwinds

Prudential PLC demonstrated resilient performance in the third quarter, with new business profit (NBP) rising 1% to $709 million, despite headwinds in its Chinese Mainland life operations. This result underscores the success of the company’s strategy to diversify its business model and capitalize on growth opportunities in other markets.

The Q3 NBP figure contributed to a 6% year-to-date increase in overall NBP, reaching $2,093 million. Crucially, this growth was accompanied by a 3 percentage point improvement in new business margin, indicating a focus on higher-quality sales. The company offset lower sales volumes in China through strong performance in other regions, particularly through its bancassurance channel, in Hong Kong, Thailand, and Malaysia.

Excluding the impact of its Chinese Mainland life operations, NBP grew by 13% in Q3 and 11% year-to-date. This highlights the effectiveness of the diversification strategy in mitigating the impact of regulatory changes affecting bancassurance expense controls in China. The company reported that the delay in the rate of improvement in its Chinese Mainland life operations means that achievement of its Group 2026 new business profit growth guidance is now more stretching than anticipated.

Eastspring, Prudential’s asset management division, saw total funds under management or advice decrease to $285.7 billion by the end of Q3, down from $290.8 billion in June. While net inflows of $5.4 billion were seen, these were offset by market movements and a $2.6 billion reduction due to the sale of a stake in ICICI Prudential Asset Management Company Limited. The company continues to actively manage its capital, having repurchased $1.0 billion of shares to date, with plans to increase this to $1.5 billion by year-end. The results indicate a shift towards prioritizing profitability and margin expansion, even as the company navigates a complex macroeconomic environment and regulatory landscape.