Prudential

PUK

Market cap $38.3B

Prudential plc (PUK) Q4 2025 Earnings Call Prepared Remarks Transcript

Prudential Plc continues to outperform, driven by robust double-digit growth in new business profit and free surplus generation across Asia and Africa. PUK's capital return policy prioritizes share buybacks over dividends, with over $7 billion targeted for return between 2024-27, equating to a 5% annual yield. Valuation remains attractive at 1.8x book value, especially versus peers, supported by a conservative investment portfolio with minimal private credit exposure.

Prudential plc (PUK) Q4 2025 Earnings Call Transcript

Full-year results from Prudential PLC (LSE:PRU) were broadly what City analysts were hoping for, with new business profit, earnings and the dividend all nudging ahead of expectations – but a softer-than-expected free surplus ratio is likely to temper enthusiasm. Shares in the FTSE 100 group fell almost 5% to 1045p by early afternoon.

Insurer Prudential , posted a 12% rise in ‌annual new business profit on Wednesday, helped by resilient momentum in its Asia and Africa markets.

Investors interested in stocks from the Insurance - Multi line sector have probably already heard of Aegon NV (AEG) and Prudential (PUK). But which of these two stocks presents investors with the better value opportunity right now?

Prudential PLC (LSE:PRU) reports full-year results on 17 March, and the numbers Deutsche Bank is watching most closely sit inside the cash flow statement rather than the headline profit line. The bank, which rates the stock a 'buy' with a 1,355p price target, forecasts new business value of $2.7 billion, embedded value of $39.3 billion, IFRS operating profit of $3.25 billion and a dividend of 25.44 cents per share for the year.

UBS has reiterated its ‘Buy' recommendation on Prudential PLC, with the Swiss bank expecting the insurance and financial services firm to return around 16% of its market capitalisation to shareholders over the next three years. The bank's analysts meanwhile, also raise their 12-month price target to 1,400p from 1,385p, with the increase reflecting a higher valuation for ICICI AMC following its listing.

Shares in Prudential PLC (LSE:PRU) are valued lower than others in the wider sector as investors continue to take a cautious view, despite the insurer's exposure to fast-growing markets in Asia and Africa, according to analysts at UBS. That caution means the stock is trading at one of the highest market-implied costs of equity in the sector of between 12% and 13.5%, a measure that reflects the return investors demand for holding the shares.

British insurer Prudential , 2378.HK named Douglas Flint as its new chair on Wednesday, succeeding Shriti Vadera, who is stepping down in May after five years in the role.