Prudential plc (PRU) Earnings Call Transcript & Summary

Hello, I'm Anil Wadhwani, CEO of Prudential. Thank you for joining us today. I'm pleased to share our half year 2026 results and update you on the progress we are making on the execution of our strategy. The message I want to leave with you today is simple. Prudential is focused on the strategy we set out, delivering high-quality growth, generating strong capital and cash, and positioning the group for long-term success in the growth markets of Asia and Africa. We remain disciplined in our execution, capturing the benefits of Prudential's diversified, multi-market and multichannel growth engines for all our stakeholders. And our first half reflects that. Growth was broad-based, margins expanded, underlying variances turned positive and earnings, capital and cash generation remained strong. Importantly, this is quality growth. We are writing business that delivers attractive margins, strong cash conversion and resilient capital generation. And in doing so, we are creating long-term value for all our stakeholders. Our focus on long-term savings and protection is also closely aligned with the regulator's objective for the insurance sector. At the same time, we are allocating capital with discipline. For example, investing for long-term growth in Malaysia and India, while continuing to increase returns to shareholders. In line with this, we expect to add $0.3 billion to our previously announced $1.2 billion 2026 share buyback program. We are strengthening our competitive position in structurally growing markets across Asia and Africa. Our investments in distribution, propositions and technology position Prudential to capture the opportunity over time, creating a significant and durable growth runway. In summary, disciplined execution is delivering quality growth, stronger capital generation and greater shareholder value, while positioning Prudential for sustained long-term growth. For the first half of 2026, new business profit was $1.4 billion, up 8%, or 10% excluding the Chinese Mainland. Adjusted operating profit after tax grew 17% per share. Gross operating free surplus generation grew 15% to $1.8 billion, and dividend per share grew 15%. Capital generation remains strong, supporting $1 billion of returns to shareholders in the first half through dividends and the share buyback program. We remain firmly focused on the delivery of our full year 2026 guidance of double-digit growth in new business profit, gross OFSG and adjusted EPS together with double-digit dividend per share growth, and on achieving our 2027 financial objectives. We are executing at pace across agency, bancassurance, health and customer. We are making steady progress on agency transformation with new business profit growth of 5% versus 4% for the full year of 2025. We recognize there is more work to be done, and we continue to implement our plans to improve the performance of this key distribution channel. Bancassurance delivered another excellent performance, with new business profit up 13%, driven by deeper strategic partnerships and a broader partnership base. Excluding the Chinese Mainland, bancassurance grew 18%. Health new business profit grew 15%, as we continue to build on our strengths in health to further extend into protection. We are reshaping and reimagining customer experiences through better technology, operations and AI. This is translating into stronger outcomes and more scalable engagement. For example, our Customer Engagement Platform, now live in 10 markets, has helped drive more than $330 million of sales in the first half, and our customer retention rate is strong at 94%. These results are supported by our $1 billion strategic investment program, which was designed to build capabilities and modernize our infrastructure. We have invested around $700 million since 2023, including $145 million in the first half of this year, continuing to build our distribution and customer capabilities and significantly strengthening our technology platform. Our growth continues to be high quality, broad-based and balanced across channels and markets. Quality growth is a deliberate choice. We are focused on writing business that delivers attractive margins, strong profitability, persistency and higher cash conversion. We are seeing that come through in margin expansion, strong aggregate IRRs of more than 25% and fast paybacks. We saw a broad-based contribution from our multi-market growth engine model. New business profit in Greater China grew 5%, and in ASEAN markets by 13%. APE sales were up 11% in India and were up 19% in Africa. Our asset manager, Eastspring, delivered operating profit growth of 20% on a like-for-like basis with funds under management up 5% to $291 billion. Our distribution model remains well balanced with agency contributing 53% of first half new business profit, bancassurance 42% and other channels combined, including brokers, 5%. This balance matters because it gives us resiliency and flexibility. Our proprietary channels support higher-quality advice and deeper customer engagement, while serving customers through the channels that best meet their needs. Turning now to the Chinese Mainland. Entering 2026, we had great momentum. APE grew 42% in the first quarter, with very strong momentum across both agency and bancassurance. Bancassurance, however, reduced in the second quarter following the implementation of more prescriptive expense regulations. Overall, the first half APE grew 21%. New business profit was down 4%, reflecting an accelerated shift towards participating products. The par mix increased from 35% to 76% of APE, which compressed new business profit margins. Alongside this, we are working closely with our bancassurance partners as the channel transitions to the new expense regulations. We see these regulatory changes as supportive of a healthier, more sustainable industry over a period of time, even as they create some short-term transition impacts. Our strategic relationship with CITIC Bank continues to deepen, and we expand our preferred bank network from 50 to more than 80 branches. At the same time, agency transformation continues to progress, with APE per active agent up 24% and MDRT qualifiers up 40%. The Chinese Mainland faces a high bancassurance comparator in the third quarter, which eases materially from September onwards. We expect full year new business profit to be in a similar range to that of 2025. We continue to focus on the transformation of agency, restoring momentum in bancassurance and rebalancing product mix, with a clear focus on quality and capital efficiency. We have navigated previous periods of change effectively. While this creates some short-term transition impacts, it does not take away from the medium- to long-term potential, and we continue to see significant long-term growth potential in the Chinese Mainland market. I really like the shape of our Hong Kong business. It is now better balanced between domestic and Chinese Mainland visitors and across agency and bancassurance. Our emphasis on generating quality growth translated into a 7 percentage point improvement in margins overall across both our proprietary channels of agency and bancassurance. Overall new business profit grew 8%. Within that, bancassurance grew 48% as it captured wealth flows, and agency grew 4% against a strong comparator. Our domestic customer segment, which now generates around 50% of our new business profit, performed strongly, supported by demand from new residents. New business profit grew 22%. CMV new business profit was down 2% against an extraordinarily strong prior year comparator. We remain highly optimistic about our Hong Kong business, given the strength of our multichannel model, the balance between domestic and CMV, and our emphasis on longer-pay savings, health and protection, and regular premium products. That is why we continue to target double-digit growth in Hong Kong for the full year, with the high July/August comparator base starting to ease from September onwards. On the recent commentary around the reinforcement of existing rules for Chinese Mainland customers, in our assessment it is too early to tell what impact this might have on customers' behavior. In our conversations with customers and agents, the underlying demand drivers for insurance in Hong Kong remain very strong. Customer retention rates remain very high, at around 99% across both domestic and CMV segments. This reflects the continued attractiveness of our propositions and is supported by our most recent customer survey, reinforcing our confidence in the structural growth prospects of our Hong Kong business. ASEAN continues to perform well, with improving momentum across the region, driven by our underlying transformation. Overall, new business profit grew 13% in the first half and new business profit margins improved by 2 percentage points. In Singapore, we delivered double-digit volume growth in both the first and the second quarters. We refreshed and broadened our health and protection offerings, adding new critical illness solutions. We saw 39% growth in investment-linked products, reflecting continued demand for wealth and savings solutions. Agency productivity improved, with new business profit per active agent up 9% and average case size up 23%. In Malaysia, new business profit grew 46%, supported by propositions that help customers upgrade their health cover to better reflect their current needs. This was complemented by more specialized advice for affluent and high-net-worth customers, with new business profit per active agent up 29% and agency new business profit up 36%. In Indonesia, the first half was challenging on account of the macro environment, including inflationary pressure, volatile equity markets and a depreciating currency, which weighed on the customer sentiment. Bancassurance performed very well, up 55%, supported by demand for U.S. dollar products and a higher mix of affluent customers, while agency was impacted by a strong prior year comparator and weaker customer sentiment. In Thailand, product innovation and partnership execution supported strong growth. Our investment-linked offering, targeting affluent and upper-affluent customers, together with our partnership with TMBThanachart Bank, known as ttb, contributed to 41% APE growth in the first half. The theme is consistent: growing our proprietary multichannel distribution model, while improving the quality and productivity of our agents, and leveraging product innovation to engage emerging affluent and affluent customers across the attractive markets of ASEAN. India is one of Asia's significant long-term growth opportunities. Our strategy is to play a more active role and shape our growth trajectory through 2 complementary insurance platforms: life and health. In life, our proposed acquisition of a 75% controlling stake in Bharti Life, subject to regulatory approval, would fundamentally reposition our platform. It moves us from passive minority participation to an active operating platform in a market with significant long-term potential. We are excited to be partnering with Bharti Airtel and 360 ONE. Together, Bharti Airtel's omnichannel reach and 360 ONE's affluent, high-net-worth and institutional relationships give us a stronger route to expand distribution, deepen customer access and deploy Prudential's capability more directly. In health, we said we would launch our stand-alone business in the second half. We have now done so, and I am delighted that we have written our first policies earlier this month. Together, life and health give us the foundations to build a scalable franchise in India, aligned with the country's long-term ambition of Insurance for All by 2047. Our focus is on building a high-quality business with a differentiated customer experience and regional expertise, and a strong position in health, where there is significant unmet demand to address. We are investing for the long term in a structurally attractive market, where we can apply our capabilities and create sustainable value. Eastspring continues to be an important value creator and a key differentiator for Prudential. In the first half, operating profit after tax grew 20% on a like-for-like basis, while funds under management increased 5% to $291 billion. Performance was supported by $5.7 billion of positive net flows, diversified sources of funds and strong investment performance, with 74% of funds outperforming their 3-year benchmarks. The business is highly cash generative, with a strong ROE and a disciplined cost-income ratio. Eastspring is well positioned to capture the rising wealth flows and growing retirement needs across Asia. Its scale, diversified funds under management, strong investment performance and deep local market expertise give it a clear platform for growth. Strategically, it's an important differentiator for Prudential, strengthening our life businesses through its investment capabilities and co-developed solutions while creating synergies between the 2 businesses. Agency remains central to our quality growth strategy, contributing to 53% of first half new business profit. In the first half, agency new business profit grew 5%, margin improved by 2 percentage points, and new business profit per active agent increased 9%. Importantly, productivity is improving across both developed and Emerging ASEAN. In developed markets, active agents were broadly stable and productivity increased 5%. In Emerging ASEAN, active agents were lower, but productivity increased 19%. That reinforces our view that the opportunity in agency is not simply about scale. It is about building a more professional, productive and active agency force. Agent quality matters because customer needs are becoming more complex, particularly across affluent customers and in health and protection, requiring trusted high-quality advice. We remain the #2 MDRT agency force globally, and building that top-tier pipeline remains a key lever. The opportunity now is to continue lifting productivity across both developed markets and Emerging ASEAN, while improving activation and quality recruitment where the need is the greatest. To accelerate productivity and quality recruitment, what I want to emphasize to you is that we are very focused on: increasing the proportion of agents who reach the top-producer cohort, particularly MDRT agents; enhancing productivity through AI and technology tools, such as PRUAction; strengthening our customer propositions in affluent high-net-worth, health and protection; transforming our recruitment program through initiatives such as PRUVenture, that support high-quality recruits at entry level; and focused training programs and upskilling of agents. We know agency transformation is a multi-year journey, but our direction is clear. We are building a higher-quality, more professional and more productive agency force, with more agents moving up the productivity curve. Bancassurance delivered an excellent performance, contributing 42% of first half new business profit. We are now on track to reach the target range of our 2027 bancassurance objective in 2026, 12 months early. New business profit was up 13%, with margins improving by 1 percentage point. This performance is driven by the strength of our exclusive strategic partnerships. These relationships provide access to target customer segments, quality distribution and a platform to scale relevant propositions. We are deepening these partnerships through specialist models, stronger frontline execution and digital and AI-enabled tools. At the same time, we are broadening our reach through nonexclusive partnerships and driving a pipeline of new digital banking partners. Bancassurance is an important distribution channel for us and positions us strongly to tap into the wealth flows across Asia. One-Tech is the backbone of our digital investment program, moving us from fragmented digital stacks to a unified, scalable platform across the group. On this foundation, our business-led approach is embedding AI across customer journeys, helping customers access faster service, more relevant solutions and better support. Together, our modernized technology platform and AI-enabled capabilities are improving customer experiences, increasing straight-through processing, reducing processing times and lifting agent experience and productivity. I'm excited by the value this is already unlocking. It is showing up in faster, simpler digital servicing for customers through PRUServices, stronger digital lead generation for agents, increased sales through our Customer Engagement Platform, and higher productivity through PRUAction, our agent performance management tool. Our approach to capital allocation remains disciplined. We continue to invest in organic growth, strengthen the business, and return capital to our shareholders. This is underpinned by a strong balance sheet position and predictable capital generation. We remain committed to returning more than $7 billion of capital to shareholders between 2024 and 2027. And now for 2026, we expect to increase our existing buyback program by approximately $0.3 billion. This takes expected shareholder returns for the year to more than $2 billion through ordinary dividends and other capital returns. Likewise, we remain firmly focused on delivery of our full year 2026 guidance of double-digit growth in new business profit, adjusted EPS, gross OFSG and dividend per share. And on achieving our 2022 to 2027 objective of 15% to 20% CAGR new business profit and gross OFSG of above $4.4 billion in 2027. Our confidence is supported by the long-term structural demand across our markets. Favorable demographics, rising wealth flows and low insurance penetration continue to drive demand for protection, health, savings and retirement solutions. With our trusted brand, multichannel distribution, strong market positions and asset management capabilities, Prudential is well positioned to capture these opportunities over time, giving us significant and durable long-term growth runway. Let me close by reminding you of our journey. We are now close to 4 years in our 5-year strategy, and we have made strong progress. We have reset the business and built stronger capabilities through our billion-dollar investment program, investing in modernizing our technology, operations, AI and data, with a renewed focus on customer, distribution and health. Those investments are now translating into better customer experiences, more scalable distribution and stronger execution across agency, bancassurance and health. At the same time, we have reshaped the portfolio and allocated capital with discipline, taking actions across India, Malaysia, Eastspring and Africa to strengthen the group's long-term growth profile. We have also increased returns to shareholders, supported by the strength of our capital generation and balance sheet. In summary, Prudential is executing with discipline, delivering resilient, high-quality growth, strengthening its long-term capital position and increasing shareholder value. We remain firmly focused on the delivery of our 2026 guidance and achieving our 2027 financial objectives. I will now hand over to Ben Bulmer, our CFO.

Thank you, Anil. Hello, I am Ben Bulmer, CFO of Prudential plc. I'm pleased to report that Prudential delivered another period of high-quality growth and increasing shareholder returns in the first half of 2026. Our operational performance generated double-digit growth in 3 of our 4 key financial KPIs. Overall, we grew: new business profit or NBP, 8%; operating profit per share, 17%; capital generation, or gross OFSG, 15%; and the first interim dividend per share is up 15%, set as usual, at 1/3 of the prior year's full year dividend per share. We remain focused on disciplined and active capital allocation in line with the framework we set out last year. We continue to invest in high-quality organic new business and in the capabilities required to transform the group and support sustainable growth. At the same time, we've taken actions to strengthen our strategic portfolio. In India, we announced our agreement to acquire a 75% controlling stake in Bharti Life. This will move us from a passive to an active growth platform. We have also received approval to launch our stand-alone health business. And in Malaysia, we increased our stake in our conventional life insurance business to 70%. In addition, during the first half of 2026, we returned over $1 billion to shareholders through dividends and buybacks. We expect to increase our 2026 buyback of $1.2 billion by circa $0.3 billion, funded by our current capital market actions. Our previous guidance for capital returns in 2027 is reconfirmed. We expect to return $1.3 billion in addition to the ordinary dividend, resulting in over $7 billion of returns to shareholders over the 2024 to 2027 period. We remain firmly focused on the delivery of our 2026 guidance of double-digit growth across our 4 financial KPIs and on achieving our 2027 financial objectives. As usual, I will now run through our results in more detail, starting with value generation before turning to IFRS earnings and capital. Our diversified multi-market and multichannel platform continues to support high-quality value creation. NBP generation reached $1.4 billion, up 8%. Excluding the Chinese Mainland, overall NBP growth would have been 10%. The 4% reduction in Chinese Mainland NBP reflected the combination of the margin impact from the increased share of participating business and the impact on sales volumes from the application of new industry-wide bancassurance expense rules. We are working closely with our bank partners to restore momentum and rebalance product mix, including expanding our preferred branch network with CITIC and launching a range of new products. We expect full year NBP to be similar to 2025 levels. By market, Malaysia was the standout performer, with NBP up 46%. We also saw good growth in Hong Kong, with higher margins and a strong domestic segment performance. Thailand and India supported double-digit growth in our growth markets segment. From a channel perspective, the vast majority of our NBP generation is from proprietary distribution through our agency and bank partners. Over the first half, agency grew 5% whilst bancassurance continued to deliver strongly, with NBP up 13% overall or 18% outside of the Chinese Mainland. We continue to focus on writing high-quality, capital-generative new business. The group's NBP margin improved by 2 percentage points year-on-year to 40%. We drove improvement in both agency and bancassurance margins despite reductions in the Chinese Mainland. Margin progression was generated in Hong Kong and Malaysia through an improved health and protection mix. Hong Kong also benefited from further selective repricing actions. 33% of our NBP is sourced through health and protection products. The majority of savings-related shareholder profits are derived from fee income within participating and unit-linked structures with limited direct market risk. Most importantly, we continue to focus on high-quality business that converts to cash, with attractive IRRs and short shareholder payback periods. Embedded value operating profit increased by 11% to $2.5 billion, driven by NBP growth, a higher in-force return, and disciplined management of central costs. On a per share basis, embedded value operating EPS grew by 16%, benefiting from reduced noncontrolling interests in Malaysia and a lower average share count following our ongoing buyback. On a headline basis and before allowing for capital distributions, the group's embedded value increased 6% over the 6-month period to $40.1 billion. On a per share basis, after allowing for capital distributions and excluding goodwill, this was $15.27, an increase of 5%. Finally, on an annualized basis, our RoEV was 15%. We continue to believe that sustained high-quality growth and disciplined capital management will support a 2 to 3 percentage point improvement in RoEV over time. I will now turn to our financial performance from an IFRS perspective. In our accounts, you will see that we've made a slight change to our presentation of our IFRS CSM and operating income, moving to what we call a shareholder view, removing certain policyholder items related to reinsurance that can distort the individual lines of the source of earnings analysis. This results in an increase in the insurance service result and a corresponding reduction in the net investment result. Our guidance for CSM structural growth, growth in the net investment result, and growth in operating EPS are all unchanged. I will start, as usual, with the development of our CSM balance. This acts as a store of future profit, released over time to the income statement as insurance services are provided to customers. Our focus on high-quality new business grew the CSM new business contribution to $1.4 billion, up 9%. Together with the normalized unwind and the release to the income statement, the underlying annualized CSM growth rate was 7%. This remains in line with our 6% to 9% guidance range, but below that reported in the prior period as a result of lower start-of-period interest rates mechanically reducing the rates of normalized unwind and a lower relative contribution from new business. Economic and other variances were $0.3 billion. The release to the income statement was $1.4 billion. This equates to an annualized release rate of 10%, moderately below the first half of 2025, reflecting growth in longer-duration savings business over recent years. Overall, this, together with adverse FX translation, resulted in a closing CSM balance of $26.8 billion. Turning to IFRS earnings, our insurance result was driven by the $1.4 billion CSM release, up 10%. This accounts for around 3 quarters of insurance operating profit. The net investment result was $0.5 billion, up 2%, in line with the guidance we provided in March. This reflects growth in life business surplus funds being dampened by strong remittances to group and asset derisking activities in the Chinese Mainland. Experience variances, included within the other column of the left-hand chart, were negative $27 million compared with a positive $24 million in the first half of 2025. This mostly reflects increased investment in capabilities and start-up costs. As a result, the overall insurance result is up 5%. Our IFRS income statement is summarized on the right-hand side of the slide. The headline asset management result is up 1%, with improved operating profit offset by the lower share of earnings from our Indian asset management operations, or AMC, following the IPO in December last year. On a like-for-like basis, underlying asset management pre-tax earnings were up 19%. We have maintained our rigorous approach to controlling central expenditure. Corporate expenditure was broadly flat year-on-year and the level of restructuring costs reduced significantly. This positive operating leverage lifted growth in group operating profit before tax to 9%. The effective tax rate was 16%, and benefiting from a reduced noncontrolling interest charge, shareholder operating profit after tax was up 13%. Allowing for the 4% reduction in the average share count, operating earnings per share grew by 17%. Finally, turning to capital generation. We continue to make very good progress towards our 2027 objective of delivering in-force capital generation, or gross OFSG, of above $4.4 billion. Gross OFSG increased by 15% in the period, in line with the guidance provided in March. Underlying this was sustained growth in the expected transfer, up 16% to $1.6 billion, consistent with the $3.1 billion expected for the year as a whole. This increase reflects the benefit of high-quality new business growth over recent years. Capability investment was $145 million. I continue to expect this to be between $300 million and $350 million for the full year, largely completing our program. Underlying operating variances are positive, and I will return to this shortly. Overall, gross OFSG increased to $1.8 billion, up 15%. We then invested $0.4 billion in new business at attractive returns. Finally, adding the benefit of lower central and restructuring costs, group-level capital generation increased 41% to $1.2 billion. We remain confident in achieving our 2027 gross OFSG objective of above $4.4 billion. We will meet this through growth in profitable new business, and completing in-train actions to return to long-term net positive variances. The now familiar chart on the left summarizes these key drivers. As of the end of 2025, the capital emerging in 2027 from life business already written stood at $3 billion. To this, in 2026, we add profitable new business driving future capital generation in 2027 and beyond. Over the first half, the new business addition to 2027 capital generation was up 42% on a year-on-year basis. This is largely driven by the mechanical effect of moving to the structurally higher policy year 1 contribution compared to policy year 2, alongside underlying volume growth. As a reminder, the 2025 full year new business addition was $0.5 billion, and I expect like-for-like growth this year to be broadly in line with growth in new business. Returning to positive operating variances and assumption changes is the other key to the achievement of our 2027 gross OFSG objective. The return to underlying positive variances, at $32 million over the first half, for the first time since 2020, is an important milestone. This outcome reflects the continued benefit of actions to improve underwriting profitability within our health and protection business and the benefits of improving economies of scale, with total costs growing more slowly than revenues. As I just mentioned, we expect to largely complete the investment in capability program this year. Given this, I'm confident we will deliver positive variances north of $200 million in 2027. Business unit remittances to the group center are very strong. Over the first half, segment capital generation, net of investment in new business, was $1.4 billion. Remittances matched this. I continue to guide you to a remittance ratio of around 70%, noting that the timing of remittances is typically weighted to the first half of the year. At a holding company level, this resulted in holding company free cash flow of $0.9 billion, the payment of the 2025 second interim dividend and our ongoing buyback program. Other corporate activities largely represent our increased holding in Malaysia. Overall, our central liquidity position remains very strong, with a closing balance of $3.7 billion. The group's capital position remains robust. We benefit from strong and improving capital generation, very strong regulatory capital ratios, and low financial leverage. Our GWS regulatory capital ratio was 268% on a shareholder basis and 195% on a total company basis. And our free surplus ratio stood at 209% at the end of the period, ahead of our 175% to 200% operating range. On a pro forma basis, allowing for the full return of the AMC IPO proceeds, this would be 200%. The development of the free surplus ratio over the first half reflects ongoing organic capital generation, less capital returns to shareholders, and the increased stake in Malaysia. The progress evident in our first half financial performance and our strong capital position reflects our disciplined and active management approach to capital allocation and our focus on driving sustainable growth in value and capital generation. We continue to execute consistently across our framework by maintaining a very strong regulatory capital position, and investing in new business with IRRs in excess of 25% and payback periods of less than 4 years. Our capital management program is now firmly established. So far this year, we have returned $0.8 billion of capital through our buyback program. We are also actively managing our strategic portfolio for sustained long-term growth. Let me give you some further financial details on India, a key strategic market where we have pivoted from a passive position to a controlled growth platform. There are 2 separate but related transactions. First, our agreement to acquire a 75% stake in Bharti Life. And secondly, the prospective reduction in our current 22% holding in ICICI Prudential Life, or IPru, to around 10%. The initial cash consideration for Bharti Life is circa $370 million, with a potential additional payment of up to $74 million, dependent on fulfillment of certain conditions. The transaction process is ongoing, with multiple regulatory approvals required. It's proceeding as expected, but will take some time to complete and hence, it has not yet been recognized in our accounts. Regarding the second transaction, the reduction in our IPru stake. Part of the proceeds will be used to support future growth in the Prudential/Bharti platform, while the residual capital will contribute to our free surplus. We will also continue to invest in growth in our stand-alone health business, now we have an operating license. This will be modest though, as we test, learn and grow alongside our partner, HCL. Our performance over the first half has further demonstrated the quality of our franchise and the strength of a platform that is delivering high quality and compounding sustainable growth. We have leading positions in the highly attractive markets of Asia and Africa. We are generating attractive margins and are positioning the business to deliver double-digit performance for many years to come. In summary, we remain focused on driving high-quality growth and increasing shareholder returns. We are executing against our strategic priorities at pace, sustaining bancassurance momentum, while building agency strength and quality. And we continue to enhance the quality of our new business to drive sustainable, efficient growth. We are disciplined in the allocation of capital, investing in capability build, and in selective infill acquisitions that strengthen the future growth prospects of the group. We expect to increase our 2026 buyback of $1.2 billion by circa $0.3 billion, funded by our current capital market actions. We remain firmly focused on the delivery of our 2026 guidance of double-digit growth in NBP, gross OFSG, operating EPS and DPS, and on achieving our 2027 financial objectives. Finally, we are well positioned in the long-term growth markets of Asia and Africa, and I remain excited by the opportunities ahead.