Prudential profit rockets 71% in 2025 as S&P elevates rating to AA

Its new business profit also rose 12% to $2.78b.

Prudential plc reported an IFRS profit after tax of $4.12b for 2025, up 71% from $2.42b in 2024, according to its financial report.

New business profit on a traditional embedded value basis rose 12% to $2.78b, whilst operating free surplus from in-force insurance and asset management increased 15% to $3.06b. Adjusted operating profit before tax grew 5% to $3.31b.

S&P Global Ratings also upgraded the financial strength rating of the group’s core entities to AA from AA-, citing its strong capital position.

Earnings per share based on adjusted operating profit rose 12% to 101.4 cents. The group declared a total dividend of 26.60 cents per share, up 15%, including a second interim dividend of 18.89 cents.

Prudential expects to return more than $7b to shareholders between 2024 and 2027 under its capital management framework.

The company completed a $2b share buyback and the IPO of ICICI Prudential Asset Management Company Limited in 2025, and has launched a further $1.2b buyback in 2026, with a $1.3b capital return planned for 2027.

The Group’s TEV equity rose 15% to $37.8b, equivalent to 1,483 cents per share.

The free surplus ratio stood at 221%, compared with 234% in 2024, whilst the shareholder coverage ratio reached 262%.

APE sales increased 7% to $6.66b, whilst the present value of new business premiums rose 10% to $31.9b.

Life weighted premium income grew 10% to $28.1b, and new business margin expanded by two percentage points to 42%.

Eastspring’s funds under management or advice increased 8% to $277.7b.

The group also raised its stake in its Malaysia conventional business to 70% in early 2026.