Prudential plc ADR Stock News

JP Morgan has reiterated its overweight rating on Prudential PLC (LSE:PRU), saying the negative market reaction to the insurer's first-half results was overdone. The bank said concerns over first-half new business profit growth and the outlook for Mainland China Visitor business in Hong Kong after Decree 837 tax changes were understandable.

JP Morgan expects investors to react positively to Prudential PLC (LSE:PRU) half-year results, after the insurer reaffirmed its full-year growth targets despite a slower first-half performance. The bank, whose analyst Farooq Hanif rates the insurer overweight with a price target of 1,480 pence, said new business profit rose 8% at constant exchange rates in the first half of 2026.

Jefferies has reiterated its 'buy' rating on Prudential PLC (LSE:PRU), the Asia and Africa-focused life insurer, citing management's confidence in demand for its Hong Kong products. New business profit reached $1.384 billion in the first half of 2026, marginally ahead of a consensus estimate of $1.379 billion.

Prudential PLC (LSE:PRU) reported stronger first-half operating profit and new business growth, while increasing its dividend and expanding its 2026 share buyback programme. Adjusted operating profit before tax rose 9% on a constant exchange rate basis to $1.81 billion in the six months to 30 June, while adjusted operating profit after tax increased 10% to US$1.52 billion.

Prudential PLC (LSE:PRU) shares plunged 11.6% to 967.9p after reports that Chinese authorities had begun taxing returns from offshore insurance policies, threatening demand from mainland customers. The sell-off spread to other Asia-focused FTSE 100 companies, with HSBC Holdings PLC (LSE:HSBA, NYSE:HSBC) and Standard Chartered PLC (LSE:STAN) both dropping over 6%.

Prudential PLC (LSE:PRU) numbers later this month are likely to be weaker than the market is forecasting, UBS believes, though it is confident that long-term growth prospects in Asia remain intact. The insurer reports first-half results on 27 August.