Prudential plc (PUK) Q2 2025 Earnings Call Transcript
New business profit and adjusted operating profit per share Both grew 12% year-over-year. This growth reflects strong momentum across core markets, sharp execution, and a focus on writing high-quality new business.
Gross operating free surplus generation Grew 14% year-over-year. This increase demonstrates the strength of the business model and its ability to generate sustainable cash returns.
Dividends per share Increased 13% year-over-year. This reflects the company's confidence in its future and its strong capital generation.
New business profit in Hong Kong Grew 16% year-over-year. This growth is attributed to strong market performance and effective execution strategies.
New business profit in Indonesia Grew 34% year-over-year. This significant growth is due to strong market performance and strategic initiatives.
Return on embedded value Improved to 15% year-over-year. This improvement is driven by growth in in-force profit and ongoing capital return.
Net operating free surplus generation (Net OFSG) Increased 20% year-over-year. This reflects improved organic capital generation and strategic progress.
New business profit margin (NBP margin) Expanded by 2 percentage points to 38% compared to the first half of last year. This expansion is due to actions to reprice products and improve mix.
Get Free Real-Time Notifications for Any Stock
Analyst Views on PUK
About PUK
About the author
Prudential Leads Year-to-Date Performance in Life and Health Insurance Stocks
S&P 500 Financials Performance: The S&P 500 financials sector has performed well in 2025, with a year-to-date increase of approximately +14%, ranking as the fourth-best performing sector in the index.
Top Life and Health Insurance Stocks: Prudential leads the life and health insurance stocks with a YTD performance of +96.80%, followed by Lincoln National and Brighthouse Financial, while Aegon holds the highest Quant Rating among the top performers.
Quant Ratings Overview: The list of top-performing life and health insurance stocks includes various Quant Ratings, with Aegon receiving a Strong Buy rating of 4.69, indicating strong investor confidence.
Leading Stocks in Other Financial Services: StoneCo is highlighted as the top payment processing stock, and Rocket is noted for leading in mortgage finance services based on their year-to-date performance.
AEG vs. PUK: Which Stock Offers Better Value?
Investment Comparison: Aegon NV (AEG) has a Zacks Rank of #2 (Buy) and a better earnings outlook compared to Prudential (PUK), which has a Zacks Rank of #3 (Hold). AEG is considered a superior value option based on various valuation metrics.
Valuation Metrics: AEG's forward P/E ratio is 6.86 and PEG ratio is 0.21, while PUK's forward P/E is 13.84 and PEG is 0.82. AEG also has a P/B ratio of 1.48 compared to PUK's 1.91, contributing to AEG's higher Value grade of B versus PUK's C.
Quantum Computing Revolution: Quantum computing is rapidly advancing and is seen as the next major technological revolution, with major companies like Microsoft, Google, and Amazon integrating it into their infrastructure.
Investment Opportunities: Senior Stock Strategist Kevin Cook has identified seven stocks poised to lead in the quantum computing sector, suggesting a significant investment opportunity for those looking to capitalize on this emerging technology.
