Prudential posts 11% profit growth in 2024, eyes over 10% growth in 2025

Investing.com -- UK-based financial services group Prudential PLC (LON:PRU) on Thursday reported its full-year 2024 financial results, indicating growth and progress towards its 2027 strategic objectives.

The company's new business profit rose by 11% to $3,078 million, while its operating free surplus from in-force insurance and asset management business remained steady at $2,642 million.

Prudential's adjusted operating profit before tax saw a 10% increase to $3,129 million, and the adjusted operating profit after tax rose by 7% to $2,582 million, the company said in a statement, adding that its earnings per share based on the adjusted operating profit were 89.7 cents per share, an 8% increase from 2023.

The company's Group EEV equity stood at $44.2 billion, and it maintained a strong capital position with a free surplus ratio of 234%. It completed $1,045 million in share buybacks under its $2 billion program announced in June 2024, which is now expected to finish by the end of 2025.

Prudential's total dividend for 2024 was 23.13 cents per share, a 13% increase, and the total shareholder returns for FY24 were $1.4 billion. The company also announced its 2024 second interim dividend of 16.29 US cents per ordinary share.

Looking ahead to 2025, Prudential expects to grow its new business profit, basic earnings per share based on adjusted operating profit, and operating free surplus generated from in-force insurance and asset management business by more than 10%.

The company also anticipates a minimum 10% increase in the dividend per share. Prudential is confident in achieving its 2027 financial and strategic objectives, aiming to generate sustainable value for its shareholders and other stakeholders.

"In our view, the most important development is that Prudential is guiding to >10% growth in 2025 for all key metrics; new business profit, operating profit, free surplus, and dividend. Further, the ongoing $2bn buyback has been accelerated, with management expecting to complete this in 2025, rather than 2026," Jefferies analysts said in a note.

Seperately, the company on Thursday also announced its intention to establish a joint venture with India's Vama Sundari Investments (Delhi) Private Limited, part of the HCL Group, to launch a standalone health insurance operation in the country.

The joint venture, contingent on regulatory approval, will see Prudential Group Holdings Limited, a subsidiary of Prudential plc, acquire a 70% stake, while Vama will retain the remaining 30%, the firm said in a separate press release.

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