(Aug 27): Insurer Prudential reported first-half new business profit largely in line with market expectations on Thursday, driven by strong growth in Hong Kong, Malaysia and Singapore, and expanded its share buyback programme by US$300 million (RM1.2 billion).

New business profit, a measure of the expected lifetime profits from policies sold, rose 8% to US$1.38 billion in the six months ended June 30 on a constant exchange rate (CER) basis, compared with the Visible Alpha consensus estimate of US$1.39 billion.

Hong Kong, new business profit rose 8% on a CER basis to US$581 million, while Malaysia recorded a 46% increase to US$70 million.

In mainland China, new business profit slipped 4% on a CER basis to US$159 million, hit by a shift in sales towards lower-margin products and regulatory changes affecting bank distribution costs.

Excluding the Chinese mainland, new business profit increased 10% on a CER basis.

Prudential's Hong Kong-listed shares closed 1.5% lower at HK$109, near a one-week low.

Earlier this month, shares of Hong Kong insurers fell on reports that China had begun imposing a 20% personal income tax on returns from Hong Kong insurance policies, raising concerns about demand from mainland Chinese customers and broader restrictions on cross-border investment channels.

However, Prudential CEO Anil Wadhwani told a press briefing that a recent company survey showed the key drivers of demand among mainland Chinese customers remained intact, including the need for investment diversification and health protection.

"That gives us the confidence that the growth, as well as the demand coming from Chinese mainland for Hong Kong policies, will continue in the second half of this year," he said.

The London- and Hong Kong-listed insurer also announced an interim dividend of 8.88 cents per share and increased its 2026 share buyback programme by US$300 million to US$1.5 billion.

Uploaded by Magessan Varatharaja