Prudential Pays Out: New $2B Stock Buyback Program Sweetens The Pot For Investors

Prudential plc PUK shares are trading higher after the company launched a share buyback program worth $2 billion.

The company expects to complete the share buyback no later than mid-2026.

CEO Anil Wadhwani, said, “Progress towards our financial objectives will increase the potential for further cash returns to shareholders. Our dividend policy remains unchanged, with the Board continuing to expect the 2024 annual dividend to grow in the range of 7-9 per cent.”

“Our outperformance in H1 2023 when the border between Hong Kong and the Chinese Mainland reopened results in a strong comparator for H1 2024. Q2 2024 APE sales trends are similar to those in Q1 2024.”

The terms of the proposed share buyback program will align with the shareholder approval obtained at the 2024 Annual General Meeting (AGM), and subsequently with any similar approval sought at the 2025 AGM.

Based on the current risk profile and applicable capital regulations across business units, the company aims to maintain a free surplus ratio between 175% and 200%. As of the end of 2023, Prudential’s free surplus ratio stood at 242%.

The company generated an operating free surplus generated from in-force insurance and asset management business of $2.74 billion.

Prudential plc anticipates releasing its half-year results for 2024 on Wednesday, August 28, 2024.

Price Action: PUK shares are up 7.97% at $19.45 at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Image: Shutterstock/ bangoland