Prudential 2H24 Preview - DBS Research 2025-01-23: Headwinds To New Business Profit, But Robust Sales.

• We expect a slight 1% y-o-y decline in Prudential's new business profit (NBP) in FY24F to US$3.0bn, due to economic impact from 10-year UST yield shooting up by 79bps in 4Q24.

Well positioned to capture structural life insurance opportunities in the fast-growing Asian market.

• - Read this at SGinvestors.io -
• We believe Prudential is well positioned to capture these structural opportunities in the fast-growing Asian market by leveraging its life insurance market leadership across Asia and Africa and productive multi-distribution channels in Greater China, ASEAN, India, and Africa.

Near-term headwind due to 10-year UST yield shooting up 79bps in 4Q24, while sales to remain solid.

• - Read this at SGinvestors.io -
• We expect a ~10ppts negative impact on the NBP margin, leading to slightly negative growth in NBP for full year of 2024.
• Despite this, annualised premium equivalent (APE) sales are expected to continue low-teen growth y-o-y vs 3Q24 levels, driven by resilient demand in key markets including HK and Indonesia.
• China market has seen strong demand in 3Q24, however, momentum moderated in 4Q24F.

Recovery of NBP growth expected in FY25F/26F.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-04-16 Prudential - Cautiously Optimistic Start To The Year..

Previous report by DBS:
2025-03-28 Prudential - Inflection Points Likely Seen In FY25F.

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