Insurer Prudential unveils $1.1 billion buyback, first-half profit rises
FILE PHOTO: The logo of British life insurer Prudential is seen on their building in London, Britain March 17, 2019. REUTERS/Simon Dawson/File Photo
Prudential unveiled on Wednesday a $1.1 billion share buyback plan and signalled higher dividends over the next two years, after posting a 12 per cent rise in first-half new business profit on robust performance across key markets.
The London- and Hong Kong-listed insurer plans to repurchase shares worth $500 million in 2026 and $600 million in 2027, on top of an existing $2 billion buyback launched last year.
It also guided to more than 10 per cent annual dividend growth through fiscal year 2027 and declared a payout of 7.71 cents per share for the six months to June 30, up from 6.84 cents a year ago.
"We have reached the inflection point in our capital generation, enabling us to update our capital management programme and increase shareholder returns," said CEO Anil Wadhwani.
Prudential also plans to return proceeds from the potential IPO of ICICI Prudential Asset Management (IPAMC), a 49 per cent-owned joint venture with India's ICICI Bank.
IPAMC filed for a $1.2 billion IPO at a $12 billion valuation earlier this year.
On Friday, the insurer said a "draft red herring prospectus" was filed in July, comprising an offer for sale of up to 10 per cent of the equity share capital in IPAMC by Prudential's subsidiary.
Its first-half new business profit on a traditional embedded value basis rose to $1.26 billion, up 12 per cent on a constant exchange rate basis from year-ago $1.12 billion, led by growth in Hong Kong and Indonesia.
Hong Kong, Prudential's top money-making region, recorded annual premium equivalent (APE) sales growth of 13 per cent on a constant exchange rate basis.
