Financial Performance - For the first half of 2024, Prudential plc reported a 6% increase in annualized premium equivalent sales to 1.468 billion, reflecting strong performance in 2023 with a 45% growth in new business profit for the full year[9]. - Adjusted operating profit for the first half of 2024 was 182 million[15]. - The total profit attributable to shareholders for the period is 947 million in the same period last year[62]. - The company reported a significant drop in profit before tax attributable to shareholders, down 66% to 1.175 billion in the previous year[62]. - The operating profit from insurance business rose to 2.333 billion in the previous year[80]. - The total European embedded value shareholders' equity decreased to 45.250 billion as of December 31, 2023[81]. - The overall IFRS post-tax profit for the growth markets segment was 406 million in the previous year, primarily due to rising interest rates[139]. Business Strategy and Growth - Prudential plc operates in 14 Asian life insurance markets, ranking among the top three insurers in 10 of these markets, with an average of 63,000 active agents monthly[9]. - The company aims for a compound annual growth rate of 15% to 20% in new business profit by 2027, alongside double-digit growth in operating free surplus from insurance and asset management[11]. - Prudential plc's strategy is centered on providing comprehensive protection in Asia and Africa, aiming to create value for all stakeholders[7]. - The company plans to deploy a consistent customer communication platform across seven business units within the next 12 months to enhance customer interaction and support new business development[22]. - The company is focusing on high-quality recruitment for its agency business and enhancing its digital agent platform, PRUForce, to support agents with sales lead management[12]. - The company is optimistic about growth opportunities in Malaysia, Indonesia, Hong Kong, and Singapore, targeting a first quartile net promoter score level by 2027 for health products[36]. Digital Transformation and Technology - Prudential plc launched an enhanced digital service platform, PRUServices, in Malaysia and plans to expand it to nine markets within the next 12 months[12]. - Significant progress has been made in transforming the technology function, enabling the creation of a new shared capability in data, analytics, and artificial intelligence to enhance operational outcomes[37]. - The flagship agent application PRUForce is being upgraded to improve agent onboarding, performance measurement, and sales lead management, with a full suite of features expected to launch in seven markets by the end of the year[38]. - Approximately 100 AI use cases have been established across various business functions to enhance agent and customer experiences[39]. Health and Protection Products - Prudential plc is strengthening its health business by implementing strict regular repricing measures and establishing a preferred provider network in key markets[12]. - New business profit from health and protection products sold through bancassurance channels increased by 15%, contributing 8.5% to bancassurance annual premium equivalent sales[28]. - The company is facing high levels of medical cost inflation in markets like Indonesia and Malaysia, and is taking measures to renegotiate contracts with healthcare partners to improve efficiency in medical insurance claims costs[32]. - The new health business operating model will be launched in April 2024, aiming to enhance accountability and collaboration across markets, with a focus on improving efficiency in health and life insurance operations[32]. Customer Engagement and Retention - Customer retention rate remained stable at 93% in the first half of 2024, with positive trends in customer experience metrics[18]. - 95% of new business policies were submitted electronically, with 75% using electronic payment and 75% processed through automated underwriting[21]. - 59% of annualized premium equivalent sales in the first half of 2024 came from new customers, indicating effective customer acquisition strategies[22]. Capital Management and Financial Stability - The group's estimated shareholder surplus above capital requirements was 2 billion share buyback plan announced in June[51]. - The leverage ratio was reported at 14%, consistent with the company's AA financial strength target[57]. - The estimated surplus of group regulatory capital over the specified capital requirement is $18.7 billion, with a coverage ratio of 192% as of June 30, 2024[99]. Market Performance and Challenges - Annualized premium equivalent sales in Hong Kong decreased by 7% compared to the previous period, but overall sales for the year increased by 276% compared to the previous year[13]. - The average number of active agents decreased by 8% in the first half of 2024, primarily due to regulatory changes in Indonesia and competitive recruitment challenges in the Philippines[24]. - The company is actively taking measures to control medical inflation in Malaysia, which is facing significant challenges due to rising healthcare costs and increasing claims[129]. - The macroeconomic environment remains uncertain, with potential challenges from central banks maintaining tight monetary policies to curb inflation, which could pressure economic growth[191]. Risk Management - Prudential's risk management framework emphasizes comprehensive risk governance, ensuring alignment with regulatory requirements and stakeholder interests[161]. - The group has established a robust risk management framework that emphasizes long-term goals and sustainable development, avoiding excessive risk-taking[167]. - The liquidity coverage ratio is used to measure the adequacy of cash resources to meet financial obligations under stressed scenarios[34]. - The group faces significant risks including market risks from global economic and geopolitical conditions, which may directly impact financial performance[186].
保诚(02378) - 2024 - 中期财报