5th Nov 2026 13:25
(Alliance News) - Prudential PLC on Thursday said new business profit edged up in the third quarter and profit margin improved, but it warned that achieving its target for full-year growth is "now more stretching" due to regulatory changes hurting its life operations in mainland China.
The London-based, Asia-focused provider of life and health insurance and asset management said new business profit was USD709 million in the three months that ended September 30, up 1.0% from USD702 million a year before. At constant currency exchange rates, the year-earlier result was USD705 million. NBP margin improved to 44% from 41%.
For the first nine months of the year, NBP was USD2.09 billion, up 5.7% from USD1.98 billion a year before. At constant currency, the year-earlier result was USD1.96 billion. Margin improved to 42% from 39%.
Prudential's life insurance business continues to be held back by regulatory changes to bancassurance expense controls in the Chinese Mainland. Excluding this operation, Prudential said NBP growth would have been 13% in the third quarter and 11% in the year-to-date.
Outside the Chinese Mainland business, called Citic Prudential Life, the company said its bancassurance channel has shown strong new business profit growth, particularly from wealth management in Hong Kong and new product launches in Thailand. The Hong Kong business benefited from price hikes, offsetting lower sales volume, Prudential said.
In Malaysia, Prudential said its business posted double-digit percentage new business profit growth in the third quarter, though slowed from the first half of 2026. However, in Indonesia and Singapore new business profit was down slightly in the recent quarter, despite ending strongly in September.
"Encouragingly, in both September and October, we have seen strong momentum in new business profit at a group level, including in our Chinese Mainland life operations, albeit that the delay in the rate of improvement in momentum in our Chinese Mainland life operations means that achievement of our group 2026 new business profit growth guidance is now more stretching than anticipated at the time of the half-year 2026 result," Prudential said.
At that time, the end of August, Prudential said it was confident to deliver double-digit-percentage growth in new business profit for all of 2026.
Prudential shares were down 0.9% to 957.00 pence early Thursday afternoon in London.
By Tom Waite, Alliance News editor
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