Prudential plc released its 2025 fourth‑quarter earnings, reporting revenue of $14.52 billion, up 11.6% year‑on‑year, and adjusted earnings per share of $3.30, which fell short of the consensus estimate of $3.36 by 1.9%. The miss was largely driven by a $0.30‑per‑share, after‑tax one‑time severance charge that was not included in the adjusted figure. Excluding that charge, the adjusted EPS would have been $3.60, a 22% increase over the same quarter in 2024.
Revenue growth was supported by a 13.7% beat in net premiums earned, which reached $7.03 billion versus analyst expectations of $6.18 billion. The premium gain was concentrated in the U.S. and international business segments, where underwriting performance and investment income helped offset modest margin pressure in legacy products.
Management guidance for the full year 2025 remains upbeat. Prudential projects double‑digit growth across key metrics, including a 12% rise in new business profit to $2.782 billion and a 15% increase in operating free surplus to $3.059 billion. The company also reaffirmed its commitment to shareholder returns, declaring a quarterly dividend of $1.40 per common share and authorizing up to $1.0 billion in share repurchases for 2026.
A significant headwind emerged from Prudential of Japan, where the company voluntarily suspended new sales for 90 days following internal findings of employee misconduct. Management estimates the suspension will reduce 2026 pretax adjusted operating income by $300 million to $350 million. Analysts noted that this event could weigh on profitability in the coming year.
Investor sentiment was tempered by the Japan suspension and the EPS miss, despite revenue beating expectations. Analysts highlighted the company’s strong capital return program and the resilience of its U.S. and international segments, but expressed caution about the impact of the sales halt and ongoing client outflows in active asset management.
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