Mike Wells | Group Chief Executive & Executive Director |
Mark FitzPatrick | Group CFO, COO & Executive Director |
Good morning. I’m Mike Wells, CEO of Prudential PLC, and today we announced our 2021 half year results.
Our purpose is to help people get the most out of life. And we do this by making healthcare affordable and accessible and by protecting people’s wealth and by growing their assets. We want to do this for as many people as possible, which is why we want to build the capacity to serve 50 million customers by 2025.
our expected and the grow embedded as profit faster is future delivery new value strategy achieve substantially returns, and shareholder we than per Asia-focused share. to growth long-term support of business long-term Our double-digit GDP in markets’ intend to We achieve XXXX. by trajectory our in socially sustainable and neutral want manner net by carbon to responsible committing growth a to become
achieve ways. this will We in three
We and India, want growth profitable in big Indonesia particularly way & and China, business customers’ affordable Thailand. to through grow Firstly, making through delivering sustainable our Protection to markets the in Health we our healthcare of a grow Eastspring. wealth by and want accessible,
digitizing and services. our through products Secondly,
in we the here multi-channel that The making key doing our and choose. are way are easier to it interact us We they is this customers existing complementing for at all capability. scale and with stay
Thirdly, channels. advice through our company humanizing and
networks growth a to and our disciplined products track and of execution and people relevant are the we segments our of on the more metrics. We much our key operational serve. Because improvements strong strategy, a have and long upskilling all delivered focus providing record we of enabling in inclusive our advice broader approach
resilience shareholders. We value capital Our profit substantial embedded operational in value, has discipline, XXXX and Prudential generate reported IFRS to to for operating this interims and results new show capabilities, continuing. the operating growth continue double-digit business profits, free surplus.
written covers for insurance a China, both market unique believe So we major the market Thailand, expected sectors. some largest India, Indonesia the and in Asia opportunities. in of greatest investor the the asset and in over country. top premiums have advantages see life with term and footprint and in In why the X of In China, we and of are Life of India, unique? In already economies are the the we Why the are life we wealth XX% management our We growth, biggest largest markets player succeeding? growth. we opportunities the growth
there and is fast-growing India, market. growth which continue see but do second economy also a opportunities have we and opportunities contributor most huge We do the in we firms Asian growth one for to the fourth nation in largest that potential insurer not. ASEAN. GDP other we an with have are And business, underpenetrated in largest the populous Not number to in world’s only the Indonesia,
of Muslims the was the Sharia which We over up are XX% rapid size population. TTB enhanced also In growth Thailand, are the we making one where year. number the segment, huge, is start the deal, fast-growing of by this in bancassurance entire with of opportunity from the supported effective delivering
ways. multi-channel in ways of distribution strategy we can in multiple combinations Our serve and customers means our that
Pulse, our XX finally, And of flows and a conditions, our So branches. licensed this as is XXX,XXX can crucial adaptability more and form the the bank through of flexibility combination of and top of position have management, well, XX,XXX what agency volatile out customers leading us. digital and agents, Eastspring, business region all through reach in under the in from customers mass through us in life around XX our assets strong terms gives This we in with X today’s funds in with increasingly billion in we want critical of $XXX markets.
that developing support will So growth. me explain how the we capabilities future let are
our value-driven. multi-channel, have distribution. It flexible broadened Firstly, we and is
both XX% seen in year. our half the this Tables through could active number In of to have we expanded agent. our per increase increase bancassurance, we the of number to invest We improved and generated positions Million partners. we In in and the have our continue branches of XX% and in agency productivity, of and channels seen the APE have the in strong also performances quality have first enhanced be heavily access both agency, Round agents bancassurance and Dollar the in leading their
We driving in bancassurance markets. Vietnam, Thailand growth expanded significantly have and those in our recently operations
been provinces, distribution growing well agency growth largest of up strong presence long-term there bancassurance, have our best are our multi-partner that in business has building China the China outcome deepening then as agency accessing we with in and consistent The the in industry. margins Secondly, strategy the bancassurance new capability. in and our our as been
industry written in the premiums half outperformed both this gross have in growth in first We of the XXXX and respect of year.
XXXX. the management Pulse We Pulse ecosystem Pulse the been And and the of the customer reach combination bancassurance around large we from seeking its take-up first have in finally have across agency The transfer enhance been excellent and XX the and then representing where and in of years how We sales partnerships critical elsewhere our we our in is XX% has in capability business, we APE million $XXX group. the the half two digital of available. new how did business. run leverage Then generated ago. skills to through we this created since from the established in of numbers have groups launch of it around million times of space, markets year, has operating downloaded total mass the not
backdrop the evolving and customer volatility hard-working performance due the and challenges to strengthen The and our resilient products build of continued social agents customers XXXX, against and substantial We while activity. economic moving to business cater continue staff capabilities. strategic environment, household incomes and COVID-XX core have consumer value and our first constraints a full segments. in And with shareholders, progress. serve the of at to our Despite for to spectrum for continuing and new we operational pace the of have of our is the and innovating with dedicated delivered in half a resulting forward
our adapting challenges. the the group. operating markets very months restrictions shows job to I a time, ways done our in strength. supporting in social we and in and the and of active great the All and our time. staff, disruption of for communities. times Across been The our that evolved of by or this development has position have responded space new believe economic so, almost XX This and done These accompanied are have of all of chart Group been infections to rapidly a we have challenges. markets. same people our activities of over customers last At to the working our waves accelerated short years testing adapted, of a the from have of the group into positively these to
significant us capture and of the capabilities us. well to opportunities position ahead We have the tools, talent, which
innovation executed action, face of lots in So of and progress the COVID-related disruption.
and of growth delivered by have eight In we financial in performance, markets. grown double-digit NBP Health double-digits APE and Protection & terms in nine have markets in
second-largest environment of new position confidence. a a circumstances. in had supported first-half China, of this strong Our and APE operating business quarter with can profit markets. the meaningful is QX, which was the prior by pre-COVID over particularly uncertain for face business new a first XXXX seven saw and ongoing unique into our in levels particularly the Clearly strong we market year. of profit COVID-related double-digit from growth volatile disruption set
regular-premium outperformed. profit sales, to development sold seen quarter re-opening sales. business continuing despite our down this of this, for in by through have in was and the as number We forms rising for skillsets sources the the APE more of NBP strong low scope XX%, period In standalone The their Kong, fell Industry-wide in product continuing of Chinese crucial in Indonesia . included higher, and however, distribution. the campaigns absolute the see further we in more which refresh Hong of Chinese domestic addition, we protection growth and our market In Despite Mainland higher and and first the year workshops in levels and conditions XX% remain evidence being retention market in Mainland we block Indonesia, protection the closed infection we future the base for the challenging at year. new period. at overall get from showed broadening on building with was rest benefited are This product comparatives, of visitor the continue reflecting adding of Customer sales comparative policies to and now agents high-quality seasonal X%, fall for innovation. strategy roughly we In rate of is expect Within conditions our a a the rates, visitors, execute progresses. the and Despite tougher will QX, of only simple as customer customer were difficult sales we business. disruption. year. COVID-related we of six provide headline the will least focus very weeks fact of training still border, to remained XX% continued ready but segmentation
in highlights had Takaful last our we quarter, there were market, the impacts where the environment Malaysia, for in upgraded the APE Singapore, was business to also year. to strong will on the COVID capabilities and meaningful half, in placed both capability excellent. face-to-face second in the well in of over doubled. products, very agency customer The be the both we the year profit business been in normalizes, our In the driving from more of the the In growth. and seek operating improvement well before. a channels segments Singapore QX sales. bounce Malaysia, demand given also especially more digital increase back the and APE COVID mitigate We strong channel Indonesian bancassurance When benefit last key performance a new the restrictions and has performed to recovering have agency than in and agency and In of than
the momentum India expanded health new hub TTB And launching agreement are improvement of opportunity. in benefits into Elsewhere And continue grow Singapore. new volatile our business there. second East enter in and rapidly profits to grow. a margin We QX African COVID-affected services showed markets, the market recovering the the vaccination rates as we from and and continued see start pattern recovery our shift initiatives. our comparatives low the of to the restrictions last was Indonesia, mix factor of from first material recently, higher and affected and several claims. and high in to our low We rates environment the expansion evident a of of resume, lockdown made first The enhanced need given the QX, products. was vaccination in with worth progress the in are first continue is in of July. Malaysia, in our due I In bancassurance and of that it growth markets year weekly more The at in through COVID, be and markets and you to number lifted moving year. in seeing Vietnam. despite operating business is segment, see markets. most were into both of products can protection our in Thailand tougher But Indonesia Mainland markets, half franchise to this Wealth from of continues it Africa expect good mortality, by to outcome Vaccination sales but through rates cross-border last largest in our most Thailand strong recently China a in materially half swing In restrictions our travel with segment, market, up. recently this rising rates include Hong coming Kenya QX increased Philippines and before net January year China channel COVID-related the sadly aimed by year. in to retirement COVID-related development the levels rates and India a QX ability financial to driven is through can many with distribution were the our coming COVID delivered sales margin to the less Pulse Growth Kong a increase the in has been
to continue will that ahead our further the and that demand. structural markets, platforms products and that increasingly for looking this expanded extremely are are the However, placed grow, we mean chosen demand growth given to offering in digitalized our distribution well confident meet we our
the The turning the United to effective. with now timetable XX Now, announced been States. has Form demerger
approval, marketing is of RBC forma XXth vote for XX% and, completion of stock with term XXX% is Jackson’s independent listed trading of to pass sell of or A and and shareholder resolution to target XXth meeting will at this majority starts investors, start X than extended XXth a ex range immediately, September. more for being due subject Our on Jackson to now needed management The give Jackson the as down September. August. Jackson drawn of its on is simple After this PLC business. August. has on shareholder will loan, is a close pro XXX% period teach-in to of planned a side its called
a will debt and required and refinancing completes, subject to Jackson for operate standalone to From preparations, expect capabilities the its complete it Africa. in launched be transformation is the We the growth all after perspective, and market ready extensive businesses listing after demerger as the PLC company. to has return our independence conditions. and demerger focus strategic Asia a will on our higher exclusively proposed risk-adjusted higher
the to highlighting accelerate half need had year, increased conclusion, and are, resilient and So provision health. The we trends, financial expected pandemic of for health performance. in my this further is digital protection messages a for key successful
of Importantly, communities, reinforced staff social stakeholders. purpose our our COVID also business has and the with our our and alignment
build substantial of build-out digital We are and competitive in capability. year. September proposed advantages, our this Jackson our for enhancing later capabilities on to on track demerger distribution we strengthening are to And
of to is the positioned standalone of the Our our business which flexibility, allows growth we summary, are debt. capture redemption And intended set to well in is financial high-coupon enhance a Africa ahead long-term existing potential equity be raise and opportunities us. to Asia and
value, CFO and growing this Prudential. on growing three components Hello, I capital, and will presentation of continuing and our COO FitzPatrick, am Asia I growing the business, earnings. key Mark of focus Africa Group In
held within proposed Jackson have discontinued expected Jackson context. demerger it briefly distribution classified we presented to to in as will financials. refer in Accordingly year as September, only has complete is for that half been and As our XXXX I
for positive As half very we people, have measure in metrics. first and partners performed of well grown and primary capital across capital our financial by Mike our Compared business OFSG, asset culminating the agents new in by of X% our X%. has management businesses generation XX% profit shareholder indicated, GWS our this our by and grew our half, life have our with surplus and XXXX, results
of by our Asia formulaic XX%. the with dividend a has profit a to approved per XXXX grew also And operating first which operating lastly, interim and interim IFRS $X.XX XX% by Board approach We earnings policy dividends, in-line share. group applies dividend first
topic, first my to value. Turning growing
digital expanded roots business and to our overall use of of all reporting at each Kong, COVID-related for markets capabilities. strongly, to Hong new our of compared broader fell many product new disruption in with new higher profit levels and profit despite Malaysia Looking rebounded prior our very business new segments, China, low of growth reflects In Singapore, cross-border offering, business the period. the very markets from due market and XX%, sales
Health the a business, Scheme a business. Insurance focus share focus new in bracket. performance, up XX% However, We new Protection Kong Hong have our domestic business continued lower & our circa reflecting performing particularly Voluntary product our appeals income now market that Health Health a on to well. was Protection in is & high Supporting profit XX% quality that on proposition
pivoted Our tightening has Chartered banca distribution Standard Protection Bank business to Health of sales through relationship with criteria. & also
result it new increased profit very a business substantially. As contribution its
growth indicated, this particularly disruption of us We this double-digit case significant early example we Kong our was percentages. have is continue delivering in in growth Asia shifts the product- agent we’ve business border stage, by to Overall, NBP interest is in activation, delivered and & new new favorable year. to as accessing diversify This was customers Chinese is continued in segment. border fell from Indonesia, up in will Hong suite the on-going, unlikely insurance believe higher and from Health lower double-digit and COVID-related margin up broader these customers. Protection be new as we a reopens. business billion. of both range period. to to policies, But there for demand size another to profit mix successfully At our Mainland some products the products reopen when but business profit Sharia We improvement economic believe contributed the strong the by product markets of which in and Overall rates growth. profit. sales $X.X have XX% as contributed XX% well the reduction nine benefited in with business channel, new APE has a materially higher driven to APE absolute and In new
varied this Underlying first reflect on the writing nature business. COVID quality over the rates growth also of the period. relentless the prior year and this related focus markets high is across addition, In of disruption various our timing in half
XX% Over & premium year business the XX% Protection was of products. the and first regular was Health half from our APE of
We and of our disruption. as of agency, us mitigate breadth COVID significant some allows continue digital, market, distribution this diversification to the capability. benefit as and depth from well banca all by Spanning to of
Our we Pulse markets. virtual higher distribution million to a continue have middle $XXX capabilities successfully half and deployed this involving first in of of was number the in APE and income XXXX. capability develop
remote more the restrictions. COVID in have than months, XX tools reach our place addition, now been for In despite are channels selling to customers enabling which
agency with XX% For at capita, Singapore, example the high Philippines, in cases featured agency Day the and of per Investor banca were sold which in of we GDP while virtually, XX% cases were XX% its virtual. of
expected the effect return partly prior last contributing persist growth billion year, the year. new XX% EEV small, profit to the the to core a million, first higher chart rates methodology. Within which and into were variances and restructuring business the was small As Jackson. operations $XX on related at underlying new I of than year, our movements our due very and Investor negative profit. billion $X.X business of effects, period currency negative of half positive, of variances interest of a overall were may months growth profit EEV continued presented driver $X.X and benefit higher The operating under to the operating at Investment $X.X active explained is for billion the non-operating this key recent excludes other value our this, so Day, the generation the basis the movements. embedded was second EEV represents changes the In the COVID of contributor costs. of reflecting half billion the for before assumption with end of six Experience in $X.X business
at end June billion of continuing $XX.X EEV [$X.XXX] Our Group the share. for was operations or per
As with add to know, Eastspring’s external you and the first customers consider an to ability we in driven value-style half June particularly Investment Asia Eastspring of by as life equity the relative management differentiated our funds delivered for strong performance current year in value end group’s our focused of $XXX encouraging billion. proposition. the performance teams. improved under at core of performance the
do these with rose, Operating that income and by $XXX ratio the the XXXX. revenues cost XX% Asia on performance. million by of $XX.X supported and margin the revenue were saw lower flows from second year in-flows $X.X outflows. to however, end of billion Funds by in positive flows outflows the mandates. at was life in-line of over margin from $XX.X behalf investment were profits of We the XX%, billion $X.X in fee billion up billion billion offset M&G external $X of end PLC XXXX At increased higher around margins. bond at expect XXXX higher reflecting equity managed half June to
So, NBP and up is up. FuM in up, EEV is summary, is
COVID XX embedded achieving double-digit And achieved the closure months. double-digit have focus border going near-term per management our ongoing of the to continue We to on new albeit value NBP in life be the the challenging in clearly share, asset value businesses will over Africa. and growth and Hong and of given we Kong/China and the hence is Asia last more long-term volumes on in this business both effects across across growth
output emerging of predictable a focus our on highly in-force our that second of from capital. The portfolio. Turning to sales our high my growing quality surplus now, topic is
drive billion and period, of the $X.X our life can is earnings. million. of with positive and capital of As were month in head a surplus attractive billion for generation. period compounding insurance This billion of this returns guidance. this year higher XX% to primary six measure than with to reductions the return to office the life $X.X achieve growth. the Eastspring’s operating took emerges, in-force In annum expected our expense of variances risk-adjusted since further OFSG included in $XXX $XX OFSG Central of million addition the and XXXX, small costs we benefit was per reinvest our prior $X.X previous line in-force
costs over million reinvestment $XX investment total shareholders. the of expect X) And capital our We further as strategic per the start the billion organic And cost aim fall XXXX. these period, generated of to investment $X.X line businesses are capital of to deliver which for allocation our X) to by dividends business. reductions priorities in additional growth. central priorities. with then in is X) available we annum existing an therefore new to support further In
Over billion on year, months quality writing times invested created billion business nearly the our which of four first new a $X.X $X.X we new investment. i.e. high multiplier of six profit business in the
the company billion from timing continuing This same businesses and bank year. of and million initiatives. payments from of of activity On shown costs. central our to distribution of development. The the $XXX in see our both operating individual over $X office the recur deducting Hong aggregate bancassurance UOB, head our our reporting functions summary not therefore prior to a this Kong central of majority and in all now remittances These vast just IFRS remittances, is businesses reflecting strategic London. these aligned Remittances the to the cash merge presentation you the growth corporate the level right costs and for from include: In EEV will costs expected item were million slide reflects the change up investment $XXX our is significantly changes of of functions of at Hong are and a holding recent in period. London, cash Vietnam. Asia with Kong the costs, half relate across for before second our extension model The agreements of to and central non-recurring are non-recurring in for
June billion continuing central resources above resulting cash was operations, our flexibility $X leverage with $X.X billion our remain for stock range. combined the and cash Our with at we XX, afforded by target comfortable financial
the We of a are regulatory effective regime, transition supervision regime, is the this than group or which our methodology May capital from the GWS now previous XXth is or regime, year. with was We local method LCSM on under capital the LCSM, for in-line the this the operating and consistent new became expectations. with wide summation called which GWS were The debt. well previous largely prepared other for
first XXXX come $X.X year and the estimated in capital cover debt, will addition our As we surplus percentage shareholder billion the already ratio points. our force. ratio debt in The under half sub driven the GWS the of operating allowed to as By is benefited expected, from XXX% principally of generation LCSM market the senior GWS local over grandfathering at debt period. existing for billion increased increase $X.X changes resulted end by of of in senior capital into we XX from design, end The by incorporate the these position as capital a to cover frameworks of of addition the in which methodology. of $XX.X billion
Hong low macro we shown the shocks, result external recurring adoption. economic also to finalized position GWS on our the relatively which and of allocation selling surplus ratio focus the year. is has capital be This our generative enable strong capital regime currently sensitivity by sensitivities Pillar is to framework, RBC of expect & capital risk. and keen to resilient supportive framework. remain and is The X this rules premium is developing high in of highly HKIA adopt which early the is business, Health respect the we market plans also quality, exposure position This lower So to capital aligned capital to And Protection resilient demonstrated as here. an to Kong’s to
Our roughly the the demerger. asset reduced X and XXXX, of at is the asset which times shareholder U.S. businesses. of than is U.S. by the exposure position smaller continuing included significantly proposed shareholder group The end the operations exposure U.K. group’s
Lastly on sheet capital and balance structure.
said As on proposed a we over demerger leverage the Moody’s medium-term. the post before, to debt we U.S. in the basis XX% range XX% seek have will
equity used proceeds to to raise financial high this, flexibility. coupon be achieve potential would to increase debt with Our the expected repay order our in
$X.X period. of investment, in XX% our at growing capital segment XX half China are third around was Kong first about were predictable markets, scale, times topic, significant growing we and And flexibility funding $X take requirements. on in markets GWS surplus the growth summary And in and topic is raise of million operating the creates growth and to how So five delivered which We are opportunities adjusted highest to earnings. $XXX and the segment by above and the our the two asset Overall the $XXX million delivered My businesses of retain generative business growth. we in from largest management single capital business our of X under new our surplus generated billion. delivered billion year. we Growth strong new of to or double-digit aim earnings the to including operating reinvestment ensure, free these of creates group-wide advantage a Hong profit billion. growth my emergence, $X.X in above our further value final resilient the Our markets capital JV financial Asia followed Africa, including our businesses IFRS business, equity potential remains
varies experience in COVID-related widely. indicated presentation, Mike his As
For sadly, favorable including level example while of increased in lower in in Indonesia claims, Hong less related the claims mortality claims saw claims. Kong COVID-related markets experience like of levels we seen saw we XXXX, following
into to high quarter the this COVID-XX with a fourth continue expect for markets trend those We of number cases.
to We nearly income higher continue the Insurance profits of rise. markets accounts business reflecting business, over nature & & Protection years insurance to underwriting the the recent continue growth in-force for of benefit Protection as fee of our compounding and XX% the from growth Health margin, income. Health from equity
$XXX source the in you here such, to As come benefit operating a overall IFRS the our through. can At of just million the margin and primary insurance growth Group profits increase the of was described. the rise in actions level drivers see starting the cost I have reflects
$X.X Our by from reduced profit profits adjusted a segment higher and corporate billion, operations operating to XX% rose expenditure. driven
long-term. At in for will same time, and invest across the growth. actively to for at continue as reviewing scope to high support and we IFRS property levels XX costs, reshaping March, potential processes including, markets, of Prelims needs of see example, manage we We I continue functions of expense said for given the and and distribution automation the in Group, trends. In restructuring in further to respect the core changes costs,
with We will the IFRS program. on-going costs incur more XX
As and a restructuring of overall costs remain IFRS elevated in implementation to expect to IFRS the result, we continue XX up lead to XX.
Thereafter, costs these we expect to reduce.
performance. Finally, will for on last Jackson’s financial comment and time, probably the I
sales were driven So net growth by Jackson profit of also higher first the billion values income fee in half, favorable short-term XX%. from $X.X account by I annuities up fluctuations delivered IFRS highlight in would rates. that Its like new and of before-tax variable to interest driven higher
Jackson Now this loss remeasurement billion remeasurement, $X.X fair has to value with X, interest. of costs relates operation, economic group’s resulted discontinued this after-tax, in to the IFRS remeasured $X.X to fair less on a Using as of a accordance has in billion. XX.X% distribute. value been
interest proposed be remaining the fair at will held economic demerger, XX.X% the Following value.
from perspective, growth down saw from good costs Jackson. operating profit, So, growth earnings an and good coming a performance in we
So to wrap-up.
and demonstrates how strategy shareholders terms Our value, earnings. first performance our capital again of delivers for in growth half
generation the profit of core long-term is growth. New EEV business driver
will economies, movement impact COVID our making is on Our to people that various lives customers. near-term continue reflect of the performance the of and
cost our in of central However, for continue $X nearly provide at surplus. wider with time, value capabilities, and distribution OFSG our new to diverse the reinvested our business. growing continue generating proven margins, attractive and in enabled times. uncertain focus quality protection customers will our business, support relentless them we platform We these with on digitally and on same focus to we and GWS dollar At and operational efficiency, invested every
Our chosen compounding sheet our Asia capital-generative continued Africa. in and support to plans and flexibility our financial growth business, across resilient pursue markets our balance