Prudential notches up better-than-expected annual earnings

In reported currencies, new business profit was 2 per cent lower, it added.

The result was better than forecast and Pru lifted its dividend payout to shareholders, but the figures also showed growth was down significantly on the 45 per cent profit growth delivered in 2023.

The results showed that new business profits in mainland China halved to $111m (£85.6m) in 2024, while it saw 2 per cent growth to $1.44bn (£1.11bn) in Hong Kong.

Hong Kong was boosted a year earlier after the removal of Covid restrictions and the opening of the border with mainland China.

The group said: “Mainland China’s macroeconomic environment and, in particular, the substantial reduction in long-dated government bond yields, presented a key challenge for the Mainland China life industry during 2024, which we expect to continue into 2025.”

But chief executive Anil Wadhwani said he had faith in the group’s long-term growth prospects.

He said: “The long-term growth trends inherent in our Asia and Africa markets are reasserting themselves, creating significant opportunities for us.

“Insurance penetration rates in Asia are low and there is continued, and growing, demand for long-term savings and protection products across our markets, alongside a need for wealth management and retirement planning, particularly in our higher income Asian markets.

“We are well positioned to capitalise on this growth opportunity.”

The group said it expects to grow underlying operating profits by 10 per cent in 2025, holding firm on the 10 per cent growth in that measure seen in 2024.

Richard Hunter, Head of Markets at interactive investor, commented “Prudential has a new strategy and fresh purpose, and the early signs of this renewed focus are extremely encouraging.

"Now focused on Asia and Africa, the group is fully aware that such major continents bring significant opportunities.”

"In addition, the group has noted that insurance penetration remains low in Asia, where growing demand for savings and protection products come alongside the need for wealth management and retirement planning amid a higher income market.”