Prudential Plc has announced a $2 billion share buyback program, signaling its progress and potential for further shareholder returns. The company plans to complete the buyback by mid-2026, with the timing and pace dependent on market conditions. Repurchased shares will be canceled.
Prudential has experienced growth due to the return of mainland Chinese travelers to Hong Kong after Covid-related travel restrictions. In the first quarter, the insurer saw a 9% increase in new business profit, driven by the sale of more profitable products by its Hong Kong unit.
Following the announcement, Prudential’s shares rose by as much as 4.2% in Hong Kong trading. However, the stock has faced a 20% decline in its London listing this year.
“In a statement, Chief Executive Officer Anil Wadhwani expressed that progress towards our financial objectives will enhance the opportunity for further cash returns to our shareholders.”
The company had previously announced its plans to more than double its new business profit, a measure of the profitability of new insurance policies, by 2027.
Prudential follows in the footsteps of AIA Group Ltd. by initiating a share repurchase program. In April, AIA announced an additional $2 billion to its buyback plan and reported a 27% increase in new business value, driven by its Hong Kong and mainland China units.
Goldman Sachs Group Inc. has been appointed to conduct the initial $700 million phase of Prudential’s buyback. This allows for the purchase of ordinary shares from June 24 until no later than December 27, according to a separate statement.