Prudential profit rises just 1% in Q3 2026 as China weighs on growth

Annualised premium equivalent sales declined 6% to $1.6b.

Prudential plc's new business profit rose 1% year-on-year to $709m in the third quarter of 2026, as growth in Hong Kong, Malaysia and other markets offset weaker sales in mainland China.

New business profit for the nine months ended 30 September increased 6% to $2.1b, whilst new business margins expanded by 3 percentage points to 42%, supported by repricing and the insurer's focus on business quality.

Annualised premium equivalent (APE) sales fell 6% to $1.6b in the third quarter, whilst year-to-date sales were broadly unchanged at $5b.

Excluding its mainland China life operations, Prudential's new business profit grew 13% in the third quarter and 11% in the first nine months of 2026.

Chief executive Anil Wadhwani said the group's diversified business model and investments in distribution capabilities supported growth, particularly through bancassurance, its Hong Kong domestic business, Thailand and Malaysia.

Outside mainland China, new business profit from the bancassurance channel grew by more than 20% in the third quarter. Group bancassurance and agency channel new business profit increased 10% and 2%, respectively, in the first nine months.

In Hong Kong, new business profit recorded double-digit growth in the third quarter, supported by repricing and higher margins and volumes in bancassurance. However, sales conversion amongst mainland Chinese visitors was slower.

Malaysia also delivered double-digit new business profit growth, driven by demand for health and protection products from mass affluent customers. Thailand and Taiwan contributed to double-digit growth in Prudential's growth markets and other segment, whilst Vietnam returned to growth in both sales and new business profit.

In mainland China, CITIC Prudential Life's new business profit declined significantly in the third quarter as bancassurance sales volumes were affected by regulatory changes to expense controls and a high prior-year comparison.

Prudential said strong APE sales growth in September and October supported its expectation of a return to growth in the fourth quarter, although the recovery is likely to be slower than previously anticipated. It expects full-year 2026 new business profit in mainland China to be 10% to 15% lower than in 2025.

The insurer said its 2026 group new business profit growth target had become more challenging due to the slower recovery in mainland China. It nevertheless remained focused on achieving its full-year guidance of double-digit growth across its four key financial metrics.