Jefferies has reiterated its 'buy' rating on Prudential PLC (LSE:PRU), the Asia and Africa-focused life insurer, citing management's confidence in demand for its Hong Kong products.
New business profit reached $1.384 billion in the first half of 2026, marginally ahead of a consensus estimate of $1.379 billion.
The insurer's new business profit margin came in at 40%, more than a percentage point above expectations.
Prudential reported stronger first-half results Thursday, with adjusted operating profit before tax rising 9% to $1.81 billion and adjusted profit after tax up 10% to $1.52 billion.
The insurer is adding $300 million to its share buyback programme, funded by a 2% reduction in its Indian shareholding, on top of $1.2 billion already planned for 2026 and $1.3 billion for 2027.
Growth accelerated to 5% at constant exchange rates in the first half of 2026, from 4% last year, while Prudential continued to cut less productive agents.
Bancassurance sales, generated through partnerships with banks, grew 13%, or 18% excluding China.
Jefferies said improving experience variances in free surplus generation support Prudential's long-standing target of $4.4 billion for the 2027 financial year.
