Prudential Plc plans to more than double its new business profit by 2027 as Chief Executive Officer Anil Wadhwani ramps up his strategy less than one year into the job.
(Bloomberg) — Prudential Plc plans to more than double its new business profit by 2027 as Chief Executive Officer Anil Wadhwani ramps up his strategy less than one year into the job.
The firm expects to boost the gauge of profitability of new insurance policies to as much as $5.4 billion by 2027, up from $2.2 billion last year, according to a statement Wednesday. That implies an annual growth rate of up to 20%.
Wadhwani is making his mark since coming to the helm in February after Prudential’s pivot to Asia and Africa last year put it in more direct competition with AIA Group Ltd. Prudential also reported a 36% jump in new business profit from its insurance operation in the first half of this year, on an actual exchange rate basis, helped by the post-pandemic recovery of mainland Chinese visitors to Hong Kong.
“We have today announced that we will do things differently in the way we run Prudential,” Wadhwani said in the statement. “We are excited to write the next chapter of growth at Prudential.”
New business profit grew to $1.49 billion, topping the $1.46 billion average estimate of 19 analysts compiled by the group, which also has an asset management business. Bloomberg compiled estimates were for $1.48 billion. Annual premium equivalent, a sales figure better known as APE, surged 37%.
The resumption of quarantine-free travel between mainland China and Hong Kong in the first quarter unleashed pent-up demand after three years of strict Covid restrictions. Prudential’s new business profit in Hong Kong more than tripled in the first half, the main driver of the growth. New business of its mainland China venture fell 21% in the first half.
AIA last week reported a 32% jump in its equivalent of new business profit in the first half.
Prudential’s adjusted operating profit increased to $1.46 billion, from $1.4 billion a year earlier. That compared with the analysts’ consensus estimate of $1.38 billion.
(Updates with new business profit growth targets in first paragraph, adds details throughout)
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