Prudential plc

The in-force book generates $3.06 billion in operating free surplus annually (FY2025, up 15% vs FY2024), underpinned by life weighted premium income of $28.1 billion. Life insurance policies typically run for decades, creating a structurally recurring premium stream that continued generating cash flow through the COVID-era disruptions to new business volumes in 2020-2022.

Prudential spans life savings, life protection, health insurance, and asset management across 24 markets, with Eastspring managing $277.7 billion in FUM (FY2025) providing a second revenue leg. All segments remain correlated financial services demand drivers, and no individual product category is clearly below 30% of group revenue, placing the mix at a moderate rather than exceptional level of diversification.

Hong Kong contributed roughly 45% of group new business profit in FY2023 and remained the largest single market in FY2025, with H1 2025 new business profit from Hong Kong growing 16%. Operations across 24 markets in Asia and Africa provide spread, but Greater China (Hong Kong plus the China joint venture) together likely represents well over half of new business profit, leaving the group well below a balanced geographic distribution.

Incremental premiums on the growing in-force book flow through at high contribution margins because the policy administration infrastructure is largely fixed, providing structural operating leverage. Operating return on IFRS shareholders' equity held stable at 14% in both FY2024 and FY2025, though ongoing agency digitization investment and expansion into 24 emerging markets limits full leverage realization.

Life and health insurance premiums are contractual, mission-critical, and multi-year in duration, giving Prudential's in-force revenue a quality profile well above transactional financial services. Eastspring's recurring AUM-based fees on $277.7 billion in funds under management (FY2025) add a second stable, high-quality revenue layer.