Andrew Sinclair's questions to PRUDENTIAL (PUK) leadership • H1 2025
Question
Andrew Sinclair from Bank of America asked for the timescale to bring the capital ratio back within the 175-200% target range, given it is expected to be well above. He also inquired about regional drivers for new business margin changes and details on the Mainland China participating (par) business back book, including yields and guarantees.
Answer
CFO Ben Bulmer explained that the company may operate slightly above the 200% range due to remittance timing, and the Board will regularly review excess capital. He noted that a seasonal shift to the agency channel in H2 would benefit margins. For China, he stated that current returns are sufficient to cover liabilities on the par book and that the business has gained approval to issue perpetual debt locally to bolster its balance sheet.