By Kimberley Kao


U.K. insurer Prudential is planning a $2 billion share buyback as part of its efforts to boost shareholder returns.

Under the program, shares worth $700 million will be repurchased under the first tranche, the insurer said Sunday.

Prudential said it was also exploring the issuance of employee and agent share schemes and enhancing the liquidity of its common shares held on the Hong Kong stock exchange.

The insurer's business has seen robust growth since the lifting of pandemic restrictions in China and Hong Kong in early 2023. Prudential's new-business profit rose 45% to $3.125 billion in 2023, which the company attributed to its shift in focus to Asian and African markets.

Prudential, which is targeting a compound annual growth rate of 15%-20% for new-business profit over 2022-2027, expects to complete the buyback program by mid-2026.

"Progress towards our financial objectives will increase the potential for further cash returns to shareholders," Chief Executive Anil Wadhwani said. The dividend policy will remain unchanged, with this year's annual dividend expected to grow in the 7% to 9% range, he said.

The insurer expects to publish its first-half results on Aug. 28.


Write to Kimberley Kao at kimberley.kao@wsj.com


(END) Dow Jones Newswires

06-23-24 2150ET