Prudential Plans $2 Billion Share Buyback
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
June 23, 2024 21:50 ET (01:50 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
Six Sports Betting and iGaming Stocks Trading at a Discount
-
4 Predictions for Stocks and the Economy for the Second Half of 2024
-
What Broadening Rally? AI Stocks Dominate Again In Q2
-
After Earnings, Is Nike Stock a Buy, a Sell, or Fairly Valued?
-
Worst-Performing Stock ETFs of the Quarter
-
Top-Performing Stock ETFs of the Quarter
-
Q2 In Review and Q3 2024 Market Outlook
-
5 Stocks to Buy for 3Q 2024
-
Industrials: Sector Offers Investment Opportunities as Performance Lags Broader Market
-
Consumer Defensives: Even Amid Macro Pressures, Deals Permeate the Landscape
-
33 Undervalued Stocks
-
Utilities: Can the Stocks Keep the Rally Going?
-
Basic Materials: Following Index Decline, We See Many Long-Term Opportunities
-
Healthcare: Valuations Look Attractive In Most Industries
-
Financial Services: Amid Uncertainties, We See the Most Value In Banks and Credit Services
-
Consumer Cyclicals: Even With Anxiety Over Spending, We See Attractive Valuations