Q2 2026 Prudential PLC Earnings Call - Q&A

August 27, 2026

Speaker #1: Thank you for standing by, and welcome to the Prudential plc 2026 half-year results Q&A audio webcast call. At this time, all participants are in listen-only mode.

Operator: Thank you for standing by, and welcome to the Prudential plc 2026 H1 results Q&A audio webcast call. At this time, all participants are in listen-only mode. For those on the audio line, if you wish to ask a question, please press star one on your telephone. I will now hand over to Patrick Bose. Please go ahead.

Speaker #1: For those on the audio line, if you wish to ask a question, please press star one on your telephone. I will now hand over to Patrick Bowes.

Speaker #1: Please go ahead.

Speaker #2: Thank you very much, Alex. Good afternoon and good morning, everyone. Welcome to Prudential plc's first half 2026 results analyst and investor call. Before I turn over to our CEO, Anil, and Ben, our CFO, I have a couple of housekeeping points.

Patrick Bose: Thank you very much, Alex, and good afternoon, good morning, everyone. Welcome to Prudential plc's H1 2026 results analyst investor call. Before I turn over to our CEO, Anil, and Ben, our CFO, I have a couple of housekeeping points. A recording of today's call will be available from Tuesday next week. Our full results package is available on our website, and I will refer you to the disclaimers and safe harbor wordings in these documents, and they also apply to this call. Ben will start the call with opening remarks, followed by a Q&A. Also on the call today are Angel, Dennis, Rajiv, Naveen from our group GEC members. Now let me pass over to Anil, our CEO, to start us off.

Patrick Bowes: Thank you very much, Alex, and good afternoon, good morning, everyone. Welcome to Prudential plc's H1 2026 results analyst investor call. Before I turn over to our CEO, Anil, and Ben, our CFO, I have a couple of housekeeping points. A recording of today's call will be available from Tuesday next week.

Speaker #2: A recording of today's call will be available from Tuesday next week. Our full results package is available on our website, and our offer to you refers to the disclaimers and safe harbor wordings in these documents, and they also apply to this call.

Patrick Bowes: Our full results package is available on our website, and I will refer you to the disclaimers and safe harbor wordings in these documents, and they also apply to this call. Ben will start the call with opening remarks, followed by a Q&A. Also on the call today are Angel, Dennis, Rajiv, Naveen from our group GEC members. Now let me pass over to Anil, our CEO, to start us off.

Speaker #2: Anil will start. Ben will open the call with remarks, followed by a Q&A. Also on the call today are Angel, Dennis, Rajiv, and Naveen from our Group CEO, GEC members. Now, let me pass over to Anil, our CEO, to start us off.

Speaker #3: Thank you, Patrick. Good morning, good afternoon, and good evening, everyone, and thank you for joining us today. The strength and resilience of our multi-market, multi-channel platform across our insurance and asset management businesses allow us to deliver consistent, high-quality growth.

Anil Wadhwani: Thank you, Patrick. Good morning, good afternoon, and good evening, everyone. Thank you for joining us today. The strength and resilience of our multi-market, multi-channel platform across our insurance and asset management businesses allow us to deliver consistent, high-quality growth. We have been focused on accelerating the conversion of new business profit into cash, thereby generating sustainable and growing shareholder returns. I am really pleased with the progress we have made in the last few years and our strong track record of delivery as we transform and modernize Prudential. We have repositioned our Hong Kong business by substantially growing the domestic franchise. It now generates 50% of the new business profit in this key segment. We improved our Chinese mainland operations through better product mix, risk management, and strong levels of capital.

Speaker #3: We've been focused on accelerating the conversion of new business profit into cash, thereby generating sustainable and growing shareholder returns. I'm really pleased with the progress we have made in the last few years and our strong track record of delivery as we transform and modernize Prudential.

Anil Wadhwani: I am really pleased with the progress we have made in the last few years and our strong track record of delivery as we transform and modernize Prudential. We have repositioned our Hong Kong business by substantially growing the domestic franchise. It now generates 50% of the new business profit in this key segment. We improved our Chinese mainland operations through better product mix, risk management, and strong levels of capital.

Speaker #3: We have repositioned our Hong Kong business by substantially growing the domestic franchise; it now generates 50% of new business profit in this key segment.

Speaker #3: Improved our Chinese mainland operations through better product mix, risk management, and strong levels of capital; demonstrated the breadth of our diversification, with ASEAN markets growing new business profit by 13%, and our Indian and African businesses growing double-digit APE.

Anil Wadhwani: We demonstrated the breadth of our diversification with ASEAN markets growing new business profit by 13% and our Indian and African businesses growing double-digit APE. Alongside our insurance operations, our asset management business grew underlying profits by 20%. In addition, we are focused on our strong proprietary channels of agency and bancassurance, driving productivity and expanding our bancassurance footprint. We launched a multi-year transformation of our agency operations with productivity and quality recruitment being the key priorities. I am pleased that we have reported progress in these areas in both our developed markets and our emerging ASEAN businesses. We have built out our market-leading Health & Protection operations, helping our customers navigate the post-COVID medical inflation while delivering significant operating improvements. Driving innovation, AI adoption, and high-quality customer experience has been a focal point of our USD 1 billion investment program in technology, in distribution, health, and customers.

Speaker #3: Alongside our insurance operations, our asset management business grew underlying profits by 20%. In addition, we have focused on our strong proprietary channels of agency and bancassurance, driving productivity and expanding our bancassurance footprint.

Speaker #3: We launched a multi-year transformation of our agency operations, with productivity and quality recruitment being the key priorities. I'm very pleased that we have reported progress in these areas in both our developed markets and our emerging ASEAN businesses.

Anil Wadhwani: I am pleased that we have reported progress in these areas in both our developed markets and our emerging ASEAN businesses. We have built out our market-leading Health & Protection operations, helping our customers navigate the post-COVID medical inflation while delivering significant operating improvements. Driving innovation, AI adoption, and high-quality customer experience has been a focal point of our USD 1 billion investment program in technology, in distribution, health, and customers.

Speaker #3: We have built out our market-leading health and protection operations, helping our customers navigate the post-COVID medical inflation while delivering significant operating improvements. Driving innovation, AI adoption, and high-quality customer experience has been a focal point of our $1 billion investment program in technology, distribution, health, and customers.

Speaker #3: We have also set clear priorities for capital allocation, with a comprehensive and sustainable capital management framework. We are making good progress in delivering over $7 billion of returns to our shareholders from 2024 to 2027.

Anil Wadhwani: We have also set clear priorities for capital allocation with a comprehensive and sustainable capital management framework. We are making good progress in delivering over $7 billion of returns to our shareholders from 2024 to 2027. Rounding off last year, we completed a highly successful IPO of our asset management operations in India, creating substantial value for our shareholders and are in the process of returning it. Most recently, you may have seen we are moving towards meeting the initial 15% free flow requirement. This will generate proceeds of approximately $0.3 billion, which will be added to our 2026 share buyback. Coming to our H1 results, we continue to build on the track record of our delivery.

Speaker #3: And rounding off last year, we completed a highly successful IPO of our asset management operations in India, creating substantial value for our shareholders and are in the process of returning it.

Speaker #3: Most recently, you may have seen we are moving towards meeting the initial 15% free float requirement. This will generate proceeds of approximately $300 million, which will be added to our 2026 share buyback.

Anil Wadhwani: Most recently, you may have seen we are moving towards meeting the initial 15% free flow requirement. This will generate proceeds of approximately $0.3 billion, which will be added to our 2026 share buyback. Coming to our H1 results, we continue to build on the track record of our delivery.

Speaker #3: Coming to our first half results, we continue to build on the track record of our delivery. We have invested further in our high-performing business in Malaysia through increasing ownership, and we have fundamentally repositioned our India business through taking control of the two complementary insurance platforms of life and health.

Anil Wadhwani: We have invested further in our high-performing business in Malaysia through increasing ownership, and we have fundamentally repositioned our India business through taking control of the two complementary insurance platforms of life and health. In H1 2026, we grew new business profit by 8%. We grew earnings per share by 17%, and free surplus generation was up 15%. As well, we increased our first interim dividend per share by 15%. Our H1 2026 performance was well-rounded, and we remain very disciplined on both quality and our execution. I have three clear messages to our investors. First, we remain firmly focused on the delivery of our guidance for 2026 of double-digit growth across our key financial metrics and on achieving our 2027 financial objectives. Second, we are progressing well in our transformation agenda, continuing to build capabilities and modernizing our operations and technology platform.

Speaker #3: In the first half of 2026, we grew new business profit by 8%. We increased earnings per share by 17%, and free surplus generation was up 15%.

Speaker #3: Additionally, we increased our first interim dividend per share by 15%. Our first half 2026 performance was well-rounded, and we remained very disciplined on both quality and our execution.

Anil Wadhwani: Our H1 2026 performance was well-rounded, and we remain very disciplined on both quality and our execution. I have three clear messages to our investors. First, we remain firmly focused on the delivery of our guidance for 2026 of double-digit growth across our key financial metrics and on achieving our 2027 financial objectives. Second, we are progressing well in our transformation agenda, continuing to build capabilities and modernizing our operations and technology platform.

Speaker #3: I have three clear messages for our investors. First, we remain firmly focused on delivering our guidance for 2026 of double-digit growth across our key financial metrics, and on achieving our 2027 financial objectives.

Speaker #3: Second, we are progressing well in our transformation agenda, continuing to build capabilities and modernize our operations and technology platform. Third, we remain highly disciplined in allocating capital. We are investing for quality growth, driving attractive margins, and sustainable growth in capital generation.

Anil Wadhwani: Third, we remain highly disciplined in allocating capital. We are investing for quality growth, driving attractive margins, and sustainable growth in capital generation. With our multi-market, multi-channel model and our drive for quality growth, I am excited with our prospects in the growing markets of Asia and Africa. Now, I will hand it over to Ben, our CFO, to walk through the financial highlights.

Speaker #3: With our multi-market, multi-channel model and our drive for quality growth, I'm excited about our prospects in the growing markets of Asia and Africa. Now, I will hand it over to Ben, our CFO, to walk through the financial highlights.

Speaker #2: Thanks, Anil, and hello everyone. So, as Anil has mentioned, in the first half of 2026, we delivered double-digit growth in EPS, DPS, gross OFSG, and 8% growth in new business profit.

Ben Bulmer: Thanks, Anil, and hello, everyone. As Anil has mentioned, in H1 2026, we delivered double-digit growth in EPS, DPS, gross OFSG, and 8% growth in new business profit. We remain firmly focused on high-quality growth in new business with high IRRs and short payback periods, the compounding effects of which are driving strong capital generations and earnings. The new business margin expanded 2 percentage points to 40%, and further focus on improvements in agency performance and increasing the proportion of H&P business within our new business mix provides us opportunities to continue to improve margins over the medium term. Our embedded value per share, ex goodwill, reached $15.27 or GBP 11.50, and our return on embedded value is 15%, with scope to improve this further by 2 to 3 percentage points.

Speaker #2: We remained firmly focused on high-quality growth in new business with high IRRs and short payback periods, the compounding effects of which are driving strong capital generation and earnings.

Speaker #2: The new business margin expanded 2 percentage points to 40%, and further focus on improvements in agency performance and increasing the proportion of health and protection business within our new business mix provides us with opportunities to continue to improve margins over the medium term.

Ben Bulmer: The new business margin expanded 2 percentage points to 40%, and further focus on improvements in agency performance and increasing the proportion of H&P business within our new business mix provides us opportunities to continue to improve margins over the medium term. Our embedded value per share, ex goodwill, reached $15.27 or GBP 11.50, and our return on embedded value is 15%, with scope to improve this further by 2 to 3 percentage points.

Speaker #2: Our embedded value per share, excluding goodwill, reached $15.27, or £11.50, and our return on embedded value is 15%, with scope to improve this further by 2 to 3 percentage points.

Speaker #2: The management of our enforced book continues to improve, and we are pleased that our underlying variances are back in positive territory. This is an important milestone and reflects actions in strengthening claims management, growing revenue premiums, and containing costs.

Ben Bulmer: The management of our in-force book continues to improve, and we are pleased that our underlying variances are back in positive territory. This is an important milestone and reflects actions in strengthening claims management, growing revenue premiums, and containing costs. These improvements will allow us to continue to invest in our business on a normal course basis while delivering sustainable positive variances as we move forward. We continue to benefit from strong persistency, and in Hong Kong, that is 99%. We will largely complete our capability investment program in 2026 with an investment of between $300 million and $350 million, and we are confident of returning to positive variances north of $200 million in 2027. In short, we are pleased with our capital generation trajectory. Gross OFSG is up 15% year on year, and net OFSG is up 41%.

Speaker #2: These improvements will allow us to continue to invest in our business on a normal-course basis, while delivering sustainable, positive variances as we move forward.

Speaker #2: We continue to benefit from strong persistency, and in Hong Kong, that is 99%. We will largely complete our capability investment program in 2026, with an investment of between $300 million and $350 million, and we're confident of returning to positive variances north of $200 million in 2027.

Ben Bulmer: We continue to benefit from strong persistency, and in Hong Kong, that is 99%. We will largely complete our capability investment program in 2026 with an investment of between $300 million and $350 million, and we are confident of returning to positive variances north of $200 million in 2027. In short, we are pleased with our capital generation trajectory. Gross OFSG is up 15% year on year, and net OFSG is up 41%.

Speaker #2: In short, we're pleased with our capital generation trajectory. Gross OFSG is up 15% year on year, and net OFSG is up 41%. We'll continue to build on this momentum as we work towards, and beyond, our 2027 objective year.

Ben Bulmer: We will continue to build on this momentum as we work towards and beyond our 2027 objective year. The group's capital position remains highly robust, and we have a conservative level of gearing. Our free surplus ratio as of 30 June was 209%, or 200%, excluding the remaining net proceeds from the AMC IPO, consistent with the 175% to 200% range we have set out. In January, we launched a combined $1.2 billion buyback to be completed by the end of 2026. As Anil indicated with today's capital market actions, we add a further $0.3 billion of buyback to be completed by the year-end. We continue to expect to return a further $1.3 billion in 2027, all contributing to over $7 billion of capital being returned to shareholders between 2024 and 2027.

Speaker #2: The group's capital position remains highly robust, and we have a conservative level of gearing. Our free surplus ratio, as of 30 June, was 209%, or 200% excluding the remaining net proceeds from the IMC IPO—consistent with the 175% to 200% range we've set out.

Speaker #2: In January, we launched a combined $1.2 billion buyback to be completed by the end of 2026, and as Anil indicated, with today's capital market actions, we add a further $0.3 billion of buyback to be completed by year-end.

Ben Bulmer: In January, we launched a combined $1.2 billion buyback to be completed by the end of 2026. As Anil indicated with today's capital market actions, we add a further $0.3 billion of buyback to be completed by the year-end. We continue to expect to return a further $1.3 billion in 2027, all contributing to over $7 billion of capital being returned to shareholders between 2024 and 2027.

Speaker #2: We continue to expect to return a further $1.3 billion in 2027, all contributing to over $7 billion of capital being returned to shareholders between 2024 and 2027.

Speaker #2: In summary, we delivered a significant improvement in financial performance in the first half of 2026, with quality growth across our key financial KPIs. Looking forward, we are firmly focused on delivering our 2026 guidance of double-digit growth in our KPIs and our 2027 financial objectives.

Ben Bulmer: In summary, we delivered a significant improvement in financial performance in H1 2026 with quality growth across our key financial KPIs. Looking forward, we are firmly focused on delivering our 2026 guidance of double-digit growth in our KPIs and our 2027 financial objectives. Prudential has leading positions in the highly attractive markets of Asia and Africa. We are generating attractive margins while positioning the business to deliver double-digit performance for many years to come. With that, I will pass back to Patrick.

Speaker #2: Prudential has 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.

Speaker #2: With that, I'll pass back to Patrick.

Speaker #1: Thank you, Ben and Anil. I'll now hand over to Alex, our call operator, who will provide instructions and open the lines for questions.

Patrick Bose: Thank you, Ben and Anil, and I will now hand over to Alex, our call operator, who will provide instructions and open the lines for questions. Please remember to give your name and organization that you represent when asking your question. Also please submit your questions online. In particular, if you are on a mobile phone, just for the benefit of everyone else to be able to hear properly, please do use the online service or dial into the VoIP. It is much clearer. So over to you, Alex.

Patrick Bowes: Thank you, Ben and Anil, and I will now hand over to Alex, our call operator, who will provide instructions and open the lines for questions. Please remember to give your name and organization that you represent when asking your question. Also please submit your questions online. In particular, if you are on a mobile phone, just for the benefit of everyone else to be able to hear properly, please do use the online service or dial into the VoIP. It is much clearer. So over to you, Alex.

Speaker #1: Please remember to give your name and the organization you represent when asking your question. Also, please submit your questions online, especially if you are on a mobile phone, for the benefit of everyone else being able to hear properly.

Speaker #1: Please do use the online service or dial into the VOIP; it's much clearer. So, over to you, Alex.

Speaker #4: Thank you, Patrick. As a reminder, to ask a question, please press star 1 on your telephone keypad. You will hear a tone to confirm that you're in the queue.

Operator: Thank you, Patrick. As a reminder, to ask a question, please press star one on your telephone keypad. You will hear a tone to confirm that you are in the queue. If you wish to withdraw your question, you may do so by pressing star two to cancel. Thank you. Our first caller is Kailesh Mistry from Bank of America. Your line is now unmuted. Please go ahead.

Speaker #4: If you wish to withdraw your question, you may do so by pressing star 2 to cancel. Thank you. Our first caller is Kailesh Mistry from Bank of America. Your line is now unmuted. Please go ahead.

Kailesh Mistry: Hi. Good afternoon. Thanks for taking my questions. It is Kailesh here. First one, predictably, is on new business value in Hong Kong. Anil, thank you for your guidance of double-digit growth for 2026. Couple of things I wanted to unpick here. Could you help us better understand your base case for the H2? Should we think about the domestic growth continuing at the 20-plus level and the MCV kind of at the level we saw at the H1? Also, how much should we expect to be driven by margin versus volume? That is the first question. Second question is just on new business strain. Obviously, sales up 3%, 4%, strain was 11% lower. What were the key drivers here, and are they sustainable, or should we still have the 11% to 12% of APE guidance in our mind? Then lastly, just on India very quickly.

Speaker #5: Hi, good afternoon. Thanks for taking my questions. It's Kailesh here. So, the first one, predictably, is on new business value in Hong Kong. Anil, thank you for your guidance of double-digit growth for 2026.

Speaker #5: A couple of things I wanted to unpick here. Could you help us better understand your base case for the second half? Should we think about the domestic growth continuing at the 20-plus level, and the MCV kind of at the level we saw in the first half?

Speaker #5: And also, you know, how much should we expect to be driven by margin versus volume? So that's the first question. The second question is just on new business strain.

Kailesh Mistry: Second question is just on new business strain. Obviously, sales up 3%, 4%, strain was 11% lower. What were the key drivers here, and are they sustainable, or should we still have the 11% to 12% of APE guidance in our mind? Then lastly, just on India very quickly.

Speaker #5: Obviously, sales were up 3% to 4%, strain was 11% lower. What were the key drivers here, and are they sustainable, or should we still have the 11% to 12% of AP guidance in our mind?

Speaker #5: And then lastly, just on India—very quickly, in terms of the asset management business, is your intention to get to the FII criteria and then stop at that point and keep your stake stable, or are you thinking something else there?

Kailesh Mistry: In terms of the asset management business, is your intention to meet the free float criteria and then stop at that point and keep your stake stable, or are you thinking something else there? Ditto on IPRU. Should we expect all the proceeds to be used for reinvestment in the new entity, or could we see some coming back to shareholders? Thank you.

Speaker #5: And ditto on IPRU, should we expect all the proceeds to be used for reinvestment in the new entity, or could we see some coming back to shareholders?

Speaker #5: Thank you.

Speaker #1: Thanks, Kailesh. Many questions there, so let me first start with the Hong Kong question and the margin question, and then I will pass on to Ben for the new business strain as well as the question on AMC and IPRU.

Anil Wadhwani: Thanks, Kailesh. Many questions there. Let me first start with the Hong Kong question and the margin question, and then I will pass on to Ben for the new business strain, as well as the question on AMC and IPRU. Firstly, let me just kind of zoom out and give you a little bit of color on our Hong Kong business. I really like the shape of where our Hong Kong business is. As you would remember, Kailesh, coming out of COVID, we were highly skewed towards the Chinese mainland visitor business. We are now very much in balance. 50% is Chinese mainland and 50% is domestic. You are right in pointing out that our domestic business did very well, grew by 22%. It also underscores, in many ways, the focus that we have been employing on quality. We are very focused on driving our proprietary channels.

Speaker #1: So, firstly, let me just kind of zoom out and give you a little bit of color on our Hong Kong business. I really like the shape of where our Hong Kong business is.

Speaker #1: As you would remember, Kailesh, coming out of COVID, we were highly skewed towards the Chinese mainland visitor business. We are now very much in balance—50% is Chinese mainland and 50% is domestic.

Anil Wadhwani: We are now very much in balance. 50% is Chinese mainland and 50% is domestic. You are right in pointing out that our domestic business did very well, grew by 22%. It also underscores, in many ways, the focus that we have been employing on quality. We are very focused on driving our proprietary channels.

Speaker #1: You're right in pointing out that domestic business did very well—grew by 22%. And it also underscores, in many ways, the focus that we've been employing on quality.

Speaker #1: We are very focused on driving our proprietary channels, and the quality came through quite strongly with the 7 percentage point improvement that we saw in our margins.

Anil Wadhwani: The quality came through quite strongly with the 7 percentage points improvements that we saw in our margins. Additionally, we are a multi-channel growth engine model. You would have noted the strong performance on bancassurance. A combination of these factors are likely to continue in the H2 of this year. To your specific question on MCV, I will try and keep the answer short. We are not seeing any abatement in terms of the drivers of demand. We are constantly in touch with our agents as well as with our customers. The structural demand drivers for why Chinese mainland customers buy in Hong Kong, that seems to be very strong. So strong domestic margin improvement, strong bancassurance.

Speaker #1: Additionally, we are a multi-channel growth engine model. You would have noted the strong performance on bancassurance, and a combination of these factors is likely to continue in the second half of this year.

Speaker #1: To your specific question on CME—and I'll try to keep the answer short—we are not seeing any abatement in terms of the drivers of demand.

Anil Wadhwani: To your specific question on MCV, I will try and keep the answer short. We are not seeing any abatement in terms of the drivers of demand. We are constantly in touch with our agents as well as with our customers. The structural demand drivers for why Chinese mainland customers buy in Hong Kong, that seems to be very strong. So strong domestic margin improvement, strong bancassurance.

Speaker #1: We are constantly in touch with our agents as well as with our customers. And the structural demand drivers for why Chinese mainland customers buy in Hong Kong—those seem to be very strong.

Speaker #1: So, strong domestic margin improvement, strong bancassurance, we are working very hard on improving our agency performance, and that gives us the positive outlook for taking Hong Kong to double digits for the full year, including upping our performance in the second half.

Anil Wadhwani: We are working very hard on improving our agency performance, and that gives us the positive outlook for taking Hong Kong to double digit for the full year, including upping our performance in the H2. I am going to pause there and pass it on to Ben.

Speaker #1: I'm going to pause there and pass it on to Ben.

Speaker #5: Okay, thanks, Anil. Hi, Kailesh. So, if I take these in order, on new business strain, what you're seeing is the benefit of a slight shift in product mix.

Ben Bulmer: Okay, thanks, Sunil. Hi, Kailesh Mistry. If I take these in order. On new business strain, what you are seeing is the benefit of a slight shift in product mix. There is a bit more par in the mix, so we are more capital efficient. There is also some nuances in country mix. I think I would steer you to going forwards is to continue to use 11%, 12% in terms of APE when you think about modeling strain. To your question on the free float, I think you have seen from today's actions, us making steps towards meeting our free float requirements. Initially I think, as you will recall, that was a 15% free float, but that then ups to a 25% free float. The proceeds, as you have seen, add to an already very healthy free surplus ratio. Of course, we are not going to retain capital we do not need.

Speaker #5: There's a bit more power in the mix, so we're more capital efficient. There are also some nuances in country mix. Look, what I think I'd steer you to going forward is to continue to use 11% to 12% in terms of APE when you think about modeling strain.

Speaker #5: To your question on the free float, you know, you’ve seen from today’s actions us making steps towards meeting our free float requirements. You know, initially, I think as you’ll recall, that was a 15% free float, but that then ups to a 25% free float.

Ben Bulmer: To your question on the free float, I think you have seen from today's actions, us making steps towards meeting our free float requirements. Initially I think, as you will recall, that was a 15% free float, but that then ups to a 25% free float. The proceeds, as you have seen, add to an already very healthy free surplus ratio. Of course, we are not going to retain capital we do not need.

Speaker #5: The proceeds, as you've seen, add to an already very healthy free surplus ratio, and of course we're not going to retain capital we don't need.

Speaker #5: So, they're being returned to shareholders. I think, stepping back on the opportunity, India remains a very strategic market for the group, and asset management more broadly is an important wealth enabler.

Ben Bulmer: They are being returned to shareholders. I think stepping back on the opportunity, India remains a very strategic market for the group, and asset management more broadly, an important wealth enabler. Your question on ICICI Prudential Life Insurance sell down. Well, this firstly is subject to successful completion of our acquisition of Bharti. We are in discussions with the relevant parties around the timetable of reducing shareholdings. As we said in our presentation, we will want to retain a portion of the proceeds from the sell-down, not just to fund the initial acquisition, but also to fund investment in the Prudential Bharti platform to accelerate growth. There will, however, be residual proceeds. We expect these to add once again to a very healthy free surplus ratio, and hopefully you can see by our behaviors what that is likely to mean.

Speaker #5: Your question on IPL sell-down—well, look, this firstly is subject to successful completion of our acquisition of BARTI. We are in discussions with the relevant parties around the timetable for reducing shareholdings.

Ben Bulmer: As we said in our presentation, we will want to retain a portion of the proceeds from the sell-down, not just to fund the initial acquisition, but also to fund investment in the Prudential Bharti platform to accelerate growth. There will, however, be residual proceeds. We expect these to add once again to a very healthy free surplus ratio, and hopefully you can see by our behaviors what that is likely to mean.

Speaker #5: You know, as we said in our presentation, we'll want to retain a portion of the proceeds from the sell-down, not just to fund the initial acquisition but also to fund investment in the Prudential BARTI platform to accelerate growth.

Speaker #5: There will, however, be residual proceeds. We expect these to add, once again, to a very healthy free surplus ratio, and hopefully you can see by our behaviors what that's likely to mean.

Speaker #1: Just one additional point from my side, Kailesh. We now have complementary channels for both life and health in India, and I'm pleased to share that we started writing our first set of policies in the health business earlier this month.

Anil Wadhwani: Just one additional point from my side, Kailash Mistry. We now have complementing channels of both life and health, in India. Pleased to share that we have started writing our first set of policies on the health business from earlier this month. Remember, this is a joint venture where we have control with HCL and delighted with the fact that we have been able to launch our health business in a market as strategic as India.

Speaker #1: And remember, this is the joint venture where we have control with HCL, and we're delighted with the fact that we've been able to launch our health business in a market as strategic as India.

Speaker #2: Okay, thanks, Anil.

Ben Bulmer: Okay. Thanks, Sunil.

Patrick Bowes: Okay. Thanks, Sunil.

Kailesh Mistry: Thank you.

Anil Wadhwani: Thank you.

Speaker #5: Thank you.

Ben Bulmer: Over to the next one.

Patrick Bowes: Over to the next one.

Speaker #2: Over to the next one.

Speaker #4: Thank you. Our next call is from Andrew Greene at Autonomous Research. Your line is now unmuted. Please go ahead.

Operator: Thank you. Our next caller is from Andrew Crean at Autonomous Research. Your line is now unmuted. Please go ahead.

Speaker #5: Good morning, or good afternoon, all. A couple of things. Ben, I think you said that the new business contribution to 2027 gross operating free surplus generation would move in line with new business in the 2026 contribution.

Andrew Crean: Good morning or good afternoon, all. Couple of things. Ben, I think you said that the new business contribution to 2027's gross operating free surplus generation would move in line with new business in the 2026 contribution, whereas I think it was up 42% in the H1. Just wanted to clarify that you think that the contribution for 2026 will be roughly 10% or in line with new business profits growth. Secondly, could you talk about MDRT active agent numbers in H1 2026 within your 55,000 total, and how much they grew? Then thirdly, Ben, you talked about the ROE being 15% and the scope to improve it by two to three points over time. Where do you see that coming from? Do you see it coming from stronger new business, from positive operation variances, or from shrinking the embedded value denominator? Thank you.

Speaker #5: Whereas, I think it was up 42% in the first half. Just wanted to clarify there that you think that the contribution for '26 will be roughly 10%, or in line with new business profit growth.

Speaker #5: Secondly, could you talk about MDRT active agent numbers in the first half of 2026 within your 55,000 total, and how much they grew? And then, thirdly, Ben, you talked about the ROV being 15% and the scope to improve it by two to three points over time.

Andrew Crean: Secondly, could you talk about MDRT active agent numbers in H1 2026 within your 55,000 total, and how much they grew? Then thirdly, Ben, you talked about the ROE being 15% and the scope to improve it by two to three points over time. Where do you see that coming from? Do you see it coming from stronger new business, from positive operation variances, or from shrinking the embedded value denominator? Thank you.

Speaker #5: Where do you see that coming from? Do you see it coming from stronger new business, from positive operating variances, or from shrinking the embedded value denominator?

Speaker #5: Thank you.

Speaker #1: Thanks. Thank you for your question. So, Andrew, why don't we first go to the new business contribution to free surplus generation? Let's have Ben answer that.

Anil Wadhwani: Thanks for your questions, Andrew. Why don't we first go to the new business contribution to pre-surplus generation? Let Ben answer that. I'll have Naveen address your MDRT question, and then we'll kind of come back to the ROE one.

Speaker #1: I'll have Naveen address your MDRT question, and then we'll kind of come back to the ROE one.

Speaker #5: Yeah, thanks. And hi, Andrew. So, the 42% increase represents really two things. One, as you appreciate, is sort of moving on one policy year, and the other is growth in the book.

Ben Bulmer: Yeah. Thanks, and hi, Andrew. The 42%

Andrew Crean: Hi

Ben Bulmer: increase, represents really two things. One, as you appreciate, is sort of moving on one policy year, and the other is growth in the book. Another way to express that, if I think about the 2026 new business contribution to the 2027 target, there is a couple of things. One is actually the cash generation signature we are writing is very much in line with the 2025 cohort of new business. That would have added, and you can see this in our accounts, 0.5 billion of contribution to 2027. So I would start with that as a base and then simply grow that by the growth we are putting on the book in 2026, if that makes sense. Do you want me to pick it up with the

Speaker #5: And so, another way to express that: if I think about the 2026 new business contribution to the 2027 target, there are a couple of things.

Speaker #5: One is actually the cash generation signature we're writing is very much in line with the 2025 cohort of new business, and that would have added—and you can see this in our accounts—£0.5 billion of contribution to 2027.

Ben Bulmer: That would have added, and you can see this in our accounts, 0.5 billion of contribution to 2027. So I would start with that as a base and then simply grow that by the growth we are putting on the book in 2026, if that makes sense. Do you want me to pick it up with the

Speaker #5: So, I would start with that as a base, and then simply grow that by the growth we're putting on the book in 2026, if that makes sense.

Speaker #5: Do you want me to pick up? Is that growth in new business profits or sales? Profits, Andrew. Profits. Okay, thanks.

Andrew Crean: Is that growth in new business, profits or sales?

Ben Bulmer: Profits, Andrew. Profits.

Andrew Crean: Okay, thanks.

Speaker #1: Let's go to the MDRT, and then we'll come to the ROE question.

Anil Wadhwani: Let's go to the MDRT and then we'll come to the ROEV question.

Naveen Tahilyani: Okay. Thank you, Anil. Andrew, hi. Thanks for your question. Let me answer it like this. I think firstly, as we have shared in the past, we remain very focused on improving the productivity of our agency force. One aspect of which is growing our MDRT franchise. We are very proud that we are the number 2 MDRT franchise, and we look to strengthen that position this year. As you've seen from the numbers, our NBP per active has grown a further 9% in H1 this year. This has happened because of five initiatives, which we will continue to accelerate through the second half of this year.

Speaker #2: Okay, thank you, Anil. Andrew, hi. Thanks for your question. Let me answer it like this. I think, firstly, as we have shared in the past, we remain very focused on improving the productivity of our agency force.

Speaker #2: One aspect of which is growing our MDRT franchise. We are very proud that we are the number two MDRT franchise, and we look to strengthen that position this year.

Naveen Tahilyani: We are very proud that we are the number 2 MDRT franchise, and we look to strengthen that position this year. As you've seen from the numbers, our NBP per active has grown a further 9% in H1 this year. This has happened because of five initiatives, which we will continue to accelerate through the second half of this year.

Speaker #2: As you've seen from the numbers, our NBP per active has grown a further 9% in H1 this year. This has happened because of five initiatives, which we will continue to accelerate through the second half of this year.

Speaker #2: Very briefly, I think the first one is we will continue to pivot the quality of our recruitment towards high-quality schemes like Pro Ventures.

Naveen Tahilyani: Very briefly, I think the first one is we will continue to pivot the quality of our recruitment towards high-quality schemes like Pru Ventures, which have scaled up already in markets of Hong Kong, Singapore, and Malaysia, and which have been relaunched and refurbished in markets of Indonesia and Philippines. Second, we have launched for the first time this year a group wide through MDRT program, which kind of creates benefits, capability building, and incentives for our MDRTs across all markets. You will recall, we had also made compensation changes early on in the year favoring high productivity agents, which we expect to see some benefits come through in the second half of the year in particular. Third, we have had good success with launch of affluent propositions. Our case sizes have increased by 6% in H1 this year. You would have noticed that number.

Speaker #2: which have scaled up already in the markets of Hong Kong, Singapore, and Malaysia, and which have been relaunched and refurbished in the markets of Indonesia and the Philippines.

Speaker #2: Second, we have launched, for the first time this year, a group-wide PRO MDRT program, which kind of creates benefits, capability building, and incentives for our MDRTs across all markets.

Speaker #2: And you will recall we had also made compensation changes early on in the year, favoring high-productivity agents, which we expect to see some benefits from in the second half of the year in particular.

Naveen Tahilyani: You will recall, we had also made compensation changes early on in the year favoring high productivity agents, which we expect to see some benefits come through in the second half of the year in particular. Third, we have had good success with launch of affluent propositions. Our case sizes have increased by 6% in H1 this year. You would have noticed that number.

Speaker #2: Third, we have had good success with the launch of affluent propositions. Our case sizes have increased by 6% in H1 this year—you would have noticed that number.

Speaker #2: And we are poised for some more affluent proposition launches in our key markets in the second half, so that will be an additional fillip.

Naveen Tahilyani: We are poised for some more affluent proposition launches in our key markets in the second half. So that will be an additional fillip. Fourth, Ben already mentioned that we've pivoted quite strongly to Health & Protection, which has been a driver of our margins, and we have further initiatives to enhance Health & Protection, in our agency channel. Last but not the least, there's significant investment in AI and technology in the agency platform to drive productivity. Our Pru Action 1.0, which is our AI module for performance management, is now live in Singapore at scale across 5,000 agents. Pleased to share that regular users have improved productivity by more than 13%. Now on your specific question of what is the actual growth, in the MDRT numbers, what I can share is the following, that MDRT is a full year phenomena.

Speaker #2: Fourth, Ben already mentioned that we've pivoted quite strongly to health and protection, which has been a driver of our margins. And we have further initiatives to enhance health and protection in our agency channel.

Speaker #2: And last but not least, there's significant investment in AI and technology in the agency platform to drive productivity. Our PRO Action 1.0, which is our AI module for performance management, is now live in Singapore.

Naveen Tahilyani: Our Pru Action 1.0, which is our AI module for performance management, is now live in Singapore at scale across 5,000 agents. Pleased to share that regular users have improved productivity by more than 13%. Now on your specific question of what is the actual growth, in the MDRT numbers, what I can share is the following, that MDRT is a full year phenomena.

Speaker #2: At scale, across 5,000 agents. And pleased to share that regular users have improved productivity by more than 13%. Now, on your specific question of what is the actual growth in the MDRT numbers, what I can share is the following: MDRT is a full-year phenomenon.

Speaker #2: We are at the half-year stage, and, you know, we will continue to focus on our MDRT initiatives as we grow forward. What I can share specifically is the contribution of MDRT and the strong pipeline that we have on MDRT.

Naveen Tahilyani: We are at the H1 stage, and we will continue to focus on our MDRT initiatives as we go forward. What I can share specifically is that the contribution of MDRT and the strong pipeline that we have on MDRT. I am now in particular referring to agents who have already crossed 70% of MDRT threshold at the H1 mark. The contribution of APE from this cohort and people who have already become MDRTs remains exactly what it was last year. We are pretty much dead on where we were last year, and we will look to accelerate in the H2 of this year. Thank you.

Speaker #2: So, I'm now in particular referring to agents who've already crossed 70% of MDRT threshold at the half-year mark. The contribution of APE from this cohort and people who've already become MDRTs remains exactly what it was last year.

Speaker #2: So, we are pretty much dead on where we were last year, and we will look to accelerate in the second half of this year.

Speaker #2: Thank you.

Speaker #5: And then coming back to your ROE question, Andrew, the starting point for that is, you know, double-digit growth in new business. We are at double-digit new business.

Ben Bulmer: Coming back to your ROEV question, Andrew. The start point for that is double-digit growth in new business. We are a double-digit business. The opportunity for the additional 2 to 3 points is really twofold. One, completion of the investment and capability program you are aware of, but also then improving variances. I am pleased with the progress we have made in that regard. As you will have seen, we are back to net positive underlying variances, positive underlying claims experience. What we will now start to benefit from is scale coming through ultimately, and greater operating leverage. There is a slide in the appendix to my presentation showing our operating leverage ratio improving 40 basis points the period. That is where you are going to see the uptick.

Speaker #5: The opportunity for the additional two to three points is really twofold: one, completion of the investment in capability program you're aware of, but also improving variances. And I'm pleased with the progress we've made in that regard.

Ben Bulmer: I am pleased with the progress we have made in that regard. As you will have seen, we are back to net positive underlying variances, positive underlying claims experience. What we will now start to benefit from is scale coming through ultimately, and greater operating leverage. There is a slide in the appendix to my presentation showing our operating leverage ratio improving 40 basis points the period. That is where you are going to see the uptick.

Speaker #5: You know, as you will have seen, we're back to net positive underlying variances—positive underlying claims experience. What we'll now start to benefit from is scale coming through, ultimately.

Speaker #5: And greater operating leverage, and there's a slide in the appendix to my presentation showing our operating leverage ratio improving 40 bps in the period.

Speaker #5: So, yeah, that's where you're going to see the uptick.

Speaker #1: Okay, thank you.

Patrick Bose: Okay. Thank you.

Patrick Bowes: Okay. Thank you.

Speaker #5: Thank you.

Ben Bulmer: Thank you.

Speaker #1: Back to Alex for the next question, please.

Patrick Bose: Back to Alex for the next question, please.

Patrick Bowes: Back to Alex for the next question, please.

Speaker #3: Thank you. Next caller is Nasib Ahmed from UBS. Your line is now unmuted. Please go ahead.

Operator: Thank you. Our next caller is Nasib Ahmed from UBS. Your line is now unmuted. Please go ahead.

Speaker #2: Okay, thank you. Thanks for taking my questions. There are three from me. Firstly, can I unpack the double-digit growth for the group in NBP?

Nasib Ahmed: Perfect. Thank you. Thanks for taking my questions. There are three from me. Firstly, can I unpack the double-digit growth for the group in NBP regarding China broadly flat? I get Hong Kong is going to do double digit, but what is kind of pulling up the rest of the business? Secondly, on Malaysia, I saw MDRT 2026 was up 4%. EBITDA profit is pretty good as well. Where can you actually get Can you get any learnings from this Malaysia business and kind of get them onto other places and geographies as well? Then finally, on the short-term variances below the line, the $66 million, where does it come from? Is there anything that is actually economic versus non-economic in there? China is typically an economic move. Thank you.

Speaker #2: You're guiding China broadly flat. I get that Hong Kong is going to do double-digit, but what's kind of pulling up the rest of the business?

Speaker #2: Second, on Malaysia, I saw MDRT 2026 was up 4%. Because it's profit, it's pretty good as well. Where can you actually get can you get any learnings from this Malaysia business and kind of get them onto other places and geographies as well?

Nasib Ahmed: Where can you actually get Can you get any learnings from this Malaysia business and kind of get them onto other places and geographies as well? Then finally, on the short-term variances below the line, the $66 million, where does it come from? Is there anything that is actually economic versus non-economic in there? China is typically an economic move. Thank you.

Speaker #2: And then finally, on the short-term variances below the line, the six to six million, where has it come from? Is there anything that’s actually economic versus non-economic in there? China is typically an economic move.

Speaker #2: Thank you.

Speaker #1: Thanks, Nasib. So, let me take the first one, and I'll go to Naveen on the second and Ben on your third question.

Anil Wadhwani: Thanks, Naseeb. Let me take the first one, and I will go to Naveen on the second and Ben on your third question. We are firmly focused on delivering our guidance of double-digit growth across a range of financial metrics, and pretty much kind of lining that up as we look at our objectives for 2027 as well. You are right in pointing out that we believe that we will carry some of the positive developments in Hong Kong into the second half. We also believe that the growth will resume in China. We are taking a number of steps to firstly conform to the new expense regulations as well as have a slew of actions in force to be able to get our product mix in balance. So that should hopefully get us to positive growth in the second half in China.

Speaker #1: So, we are firmly focused on delivering our guidance of double-digit growth across a range of financial metrics, and pretty much kind of lining that up as we look at our objectives for 2027 as well.

Speaker #1: You're right in pointing out that we believe we'll carry some of the positive developments in Hong Kong into the second half. We also believe that growth will resume in China.

Anil Wadhwani: We also believe that the growth will resume in China. We are taking a number of steps to firstly conform to the new expense regulations as well as have a slew of actions in force to be able to get our product mix in balance. So that should hopefully get us to positive growth in the second half in China.

Speaker #1: We are taking a number of steps to, firstly, conform to the new expense regulations, as well as having a slew of actions in force.

Speaker #1: To be able to get our product mix in balance. So that should, hopefully, get us to positive growth in the second half in China.

Speaker #1: But, at the end of the day, we are a multi-market growth model. So, if you look at our Malaysia business, it did very well.

Anil Wadhwani: But at the end of the day, we are a multi growth, or rather multi-market growth model. If you look at our Malaysia business, it did very well. Thailand had an outstanding H1. We believe that we can take the growth in Singapore from mid-single digit to high single digit, if not early double digit. We are also starting to see a turnaround come through in our Vietnam business. Remember, the Vietnamese business has been a negative growth for us, and it is starting to now flatten out to getting marginally positive. We are hopeful that it will start to grow, as we kind of go through the H2 of this year.

Speaker #1: Thailand had an outstanding first half. We believe that we can take the growth in Singapore from mid-single digit to high-single digit, if not early double-digit.

Speaker #1: And we are also starting to see a turnaround come through in our Vietnam business. So, remember, the Vietnam business has had negative growth for us, and it's starting to now flatten out to being marginally positive.

Speaker #1: And we are hopeful that it will start to it will start to grow as we kind of go through the second half of this year.

Speaker #1: So, we have a number of markets that will complement some of the growth that we are going to see in Hong Kong, which gives us the belief that we will be able to get to our guidance for 2026.

Anil Wadhwani: So we have a number of markets that will complement some of the growth that we are going to see in Hong Kong, which gives us the belief that we will be able to get to our guidance for 2026. I am going to go to Malaysia, which had a very strong performance. Naveen, you want to tee that up?

Speaker #1: I'm going to go to Malaysia, which had a very strong performance. Naveen, do you want to tee that up?

Naveen Tahilyani: Sure. Thanks, Anil. Naseeb, thanks for the question on Malaysia. As you have seen in the numbers, Malaysia grew very strongly in the H1, led by an outstanding performance from agency in particular. If you recall, agency, we had shared last time, had turned the corner in the H2 of the year. Malaysia is, H2 of last year, I mean. Malaysia is the one emerging ASEAN market where our agency transformation is the furthest in its implementation. To your specific question, there are three big learnings, I think, coming out of Malaysia, which will sustain the performance of Malaysia through the next few quarters, but also help us in our other ASEAN markets. The first one is focus on quality recruitment.

Speaker #5: Sure, sure. Thanks, Anil and Nasib. Thanks for the question on Malaysia. So, as you've seen in the numbers, Malaysia grew very strongly in the first half.

Speaker #5: Led by an outstanding performance from agency in particular. And if you recall, agency, we had shared last time, had turned the corner in the second half of the year.

Speaker #5: And Malaysia is the second half of last year, I mean. And Malaysia is the one emerging ASEAN market where our agency transformation is the furthest along.

Naveen Tahilyani: Malaysia is the one emerging ASEAN market where our agency transformation is the furthest in its implementation. To your specific question, there are three big learnings, I think, coming out of Malaysia, which will sustain the performance of Malaysia through the next few quarters, but also help us in our other ASEAN markets. The first one is focus on quality recruitment.

Speaker #5: In its implementation—and to your specific question—there are three big learnings, I think, coming out of Malaysia which will sustain the performance of Malaysia.

Speaker #5: Through the next few quarters, but also help us in our other ASEAN markets. The first one is focus on quality recruitment. We had talked about this last time as well, that the PruVentures program is at scale in Malaysia.

Naveen Tahilyani: We had talked about this last time as well, that the Pru Ventures program is at scale in Malaysia, and we are seeing the incoming class of recruits actually drive productivity, which is 5 to 6 times the normal organic recruits. Increasingly, the focus is to make sure that we have more and more share coming from the Pru Venture recruits. The second one is a tailored proposition for the agency, largely on H&P, but also a set of propositions addressing the HNI and affluent needs in the Malaysian markets, has worked really well in the H1 for us. Those are learnings that we will also take forward to other markets, particularly Indonesia, Philippines, where we have launched Pru Ventures or refurbished it in the first part of this year.

Speaker #5: And we are seeing the incoming class of recruits actually drive productivity, which is five to six times that of the normal organic recruits. And increasingly, the focus is to make sure that we have more and more share coming from the PruVenture recruits.

Speaker #5: The second one is a tailored proposition for the agency—largely on health and protection, but also a set of propositions addressing the H&I and affluent needs in the Malaysian markets.

Naveen Tahilyani: The second one is a tailored proposition for the agency, largely on H&P, but also a set of propositions addressing the HNI and affluent needs in the Malaysian markets, has worked really well in the H1 for us. Those are learnings that we will also take forward to other markets, particularly Indonesia, Philippines, where we have launched Pru Ventures or refurbished it in the first part of this year.

Speaker #5: It has worked really well in the first half for us. And those are learnings that we will also take forward to other markets, particularly Indonesia and the Philippines.

Speaker #5: Where we have launched PruVentures or refurbished it in the first part of this year. We are looking to launch some of these protection and affluent propositions in the second half.

Naveen Tahilyani: We are looking to launch some of these protection and affluent propositions in H2. Third, very pleased to also share that Malaysia had very strong growth in active agents in H1. This was 10% plus on the back of some of the waves of agency management initiatives that we have put in place. Again, those give us learnings for some of the emerging ASEAN markets as we move forward. All in all, strong performance from Malaysia, sustainable growth as we see it going forward, particularly driven by agency, and lots of learnings that we are already taking to other emerging ASEAN markets.

Speaker #5: And third, very pleased to also share that Malaysia had very strong growth in active agents in the first half. This was the result of agency management initiatives that we have put in place.

Speaker #5: And again, those gave us learnings for some of the emerging ASEAN markets as we move forward. So, all in all, strong performance from Malaysia.

Speaker #5: Sustainable growth, as we see it going forward, is particularly driven by agency and lots of learnings that we are already taking to other emerging ASEAN markets.

Anil Wadhwani: Nazim, just one additional point from me. While we remain positive about the growth prospects in Malaysia in H2, on account of all the reasons that Naveen has mentioned, do expect the growth to moderate in H2 versus H1. I am going to go to Ben for your third question.

Speaker #1: Nasib, just one additional point from me. While we remain positive about the growth prospects in Malaysia in the second half, on account of all the reasons that Naveen has mentioned, do you expect the growth to moderate in the second half versus the first half?

Speaker #2: I'm going to go to Ben for your third question.

Speaker #5: Yeah, hi Nasib. So, two elements really to the IFRS non-op results. Firstly, lower rates in China. That lowered the discount rate that we apply to the GMM contracts.

Ben Bulmer: Yeah. Hi, Nazim. Two elements really to the IFRS non-op results. Firstly, lower rates in China that lowered the discount rate that we apply to the GMM contracts, and lower spreads. Secondly, higher rates more broadly across many of our markets. There was a mark-to-market impact on bond holdings backing shareholder business. Also, you then had the discounting effect getting us to a lower present value of future profits on Health & Protection business. Arguably, a lot of those movements sort of discount rate related as opposed to underlying economics. What I would point out, I am sure you have noticed actually, that we have positive unlocking in the CSM. That goes some way to offsetting that -0.6. There is 0.4 positive of unlock, and that is to do with better than expected long-term equity returns across a number of our markets.

Speaker #5: And lower spreads. And then secondly, higher rates more broadly across many of our markets. So, there was a mark-to-market impact on bond holdings backing shareholder business.

Speaker #5: But also, you then had the sort of discounting effect, getting us to a lower present value of future profits on health and protection business.

Ben Bulmer: Also, you then had the discounting effect getting us to a lower present value of future profits on Health & Protection business. Arguably, a lot of those movements sort of discount rate related as opposed to underlying economics. What I would point out, I am sure you have noticed actually, that we have positive unlocking in the CSM. That goes some way to offsetting that -0.6. There is 0.4 positive of unlock, and that is to do with better than expected long-term equity returns across a number of our markets.

Speaker #5: So, arguably, a lot of those movements are sort of discount rate-related as opposed to underlying economics. What I would point out—I'm sure you've noticed, actually—is that we have positive unlocking in the CSM that goes some way to offsetting that minus 0.6.

Speaker #5: There's 0.4 positive of unlock, and that's to do with better-than-expected long-term equity returns across a number of our markets.

Speaker #2: Perfect, thank you.

Nasib Ahmed: Okay. Thank you.

Speaker #1: Alex, we'll go to the next one.

Anil Wadhwani: Alex, we will go to the next one.

Patrick Bowes: Alex, we will go to the next one.

Speaker #4: Thank you. Next caller is Michael Chang from CGSI. Your line is now unmuted. Please go ahead.

Operator: Thank you. Our next caller is Michael Chang from CGSI. Your line is now unmuted. Please go ahead.

Speaker #6: Sure, thanks. I've got a few questions. I'll start with mainland China. Started off the year very strongly, then obviously we've got some regulatory impacts that affected Q2 and quite possibly a bit of the second half as well.

Michael Chang: Sure. Thanks. I have got a few questions. I will start off with mainland China. It started off the year very strongly, then obviously we have got some regulatory impacts that impacted Q2 and quite possibly a bit of the H2 as well. I really appreciate the additional disclosure in terms of the quarterly trends for the mainland China business. Can I just get a sense, in terms of seasonality, what typically is a normal seasonality pattern within mainland China? Because typically Q1 tends to be very strong and Q4 tends to be very weak. I am not really sure how to actually interpret the numbers as to how high Q3 base is and how low Q4 base is. When I talk to some of the other insurers, it is typically maybe about 30% or 35%, then 20% to 25%. The last quarter might be about 15%.

Speaker #6: I really appreciate the additional disclosure in terms of the quarterly trends for the mainland China business. But can I just get a sense, in terms of seasonality?

Michael Chang: Can I just get a sense, in terms of seasonality, what typically is a normal seasonality pattern within mainland China? Because typically Q1 tends to be very strong and Q4 tends to be very weak. I am not really sure how to actually interpret the numbers as to how high Q3 base is and how low Q4 base is. When I talk to some of the other insurers, it is typically maybe about 30% or 35%, then 20% to 25%. The last quarter might be about 15%.

Speaker #6: What typically is a normal seasonality pattern within mainland China? Because typically, Q1 tends to be very strong, and Q4 tends to be very weak.

Speaker #6: So, I'm not really sure how to actually interpret the numbers as to how high the Q3 base is and how low the Q4 base is. I mean, when I talk to some of the other insurers, it's typically maybe about 30 or 35%, then 20, 25, 25, and then the last quarter might be about 15%.

Speaker #6: Is that fairly similar for Pru's mainland China business? Secondly, moving across to Singapore—Singapore is a market where I think APE has been very strong, but margins have been lagging a bit.

Michael Chang: Is that fairly similar for Pru's mainland China business? Secondly, I will go across to Singapore. Singapore is a market whereby I think, well, APE has been very strong, but margins have been lagging a bit. Maybe I can just get a sense for when markets start to turn around and when the agency performance will start to see a bit more of an improvement, because it seems to be very much bancassurance driven at this stage. Lastly, OFSG's inflection point, taking a look at the growth, as of the H1 and likely for the full year, we are looking at probably mid-high teens, which means that to meet the 2027 target, next year, OFSG growth will be clearly at the high end of the inflection point, over 20%. How then should we be thinking about or modeling going forward towards 2027? Thanks.

Speaker #6: So, maybe I can just get a sense for when margins start to turn around, and when the agency performance will start to see a bit more of an improvement.

Speaker #6: Because it seems to be very much bank assurance driven at this stage. And then lastly, bank assurance has clearly sorry, OFSG. OFSGs, the inflection point, taking a look at the growth as of the first half.

Michael Chang: Lastly, OFSG's inflection point, taking a look at the growth, as of the H1 and likely for the full year, we are looking at probably mid-high teens, which means that to meet the 2027 target, next year, OFSG growth will be clearly at the high end of the inflection point, over 20%. How then should we be thinking about or modeling going forward towards 2027? Thanks.

Speaker #6: And likely for the full year, we're looking at probably mid- to high teens, which means that to meet the 2027 target, next year OFSG growth will be clearly at the high end of the inflection point—over 20%.

Speaker #6: How, then, should we be thinking about or modeling going forward post-2027? Thanks.

Speaker #1: Hi, Michael. So, let me start with your first two questions, and then I'll go to Ben for the re-surplus generation one. In China, as you know, we have been very focused on driving transformation over the last three and a half years.

Anil Wadhwani: Hi, Michael. Let me start with your first two questions. Then I will go to Ben for the surplus generation one. In China, as you know, we have been very focused on driving transformation over the last 3 and a half years. You saw that come through quite emphatically in our 2025 results. We carried that momentum quite strongly into 2026. You are right to point out that Q1 typically tends to be the door opener, which tends to be the biggest quarter in the year. We did see the impacts of a higher-than-expected par mix as well as regulatory changes in Q2. As we look to the H2, we are focused on three things. One, we have a big comparator base in Q3 in China. July, August in specific, were very strong months for us in 2025.

Speaker #1: And you saw that come through quite emphatically in our 2025 results. We carried that momentum quite strongly into 2026. You're right to point out that Q1 typically tends to be the door opener, which tends to be the biggest quarter in the year.

Anil Wadhwani: You are right to point out that Q1 typically tends to be the door opener, which tends to be the biggest quarter in the year. We did see the impacts of a higher-than-expected par mix as well as regulatory changes in Q2. As we look to the H2, we are focused on three things. One, we have a big comparator base in Q3 in China. July, August in specific, were very strong months for us in 2025.

Speaker #1: We did see the impacts of a higher-than-expected bar mix, as well as regulatory changes in Q2. And as we look to the second half, we are focused on three things.

Speaker #1: One, we have a big comparator base in Q3 in China. July, August, and September were very strong months for us in 2025. So, that is something that we have to deal with.

Anil Wadhwani: That is something that we have to deal with. From September onwards, the comparators start to ease quite significantly. To your question, the shape of how we are going to grow in China or how we deliver the new business profit in China is likely to be slightly different from what you probably witnessed in 2020 and 2025. In terms of your second question on Singapore, we saw growth both across agency and bancassurance on volumes. The challenge for us was the new rules that came in with respect to co-payment. This is where we had to adjust to the new health guidelines that the government introduced, which had a knock-on impact, as you rightly pointed out, on margins.

Speaker #1: From September onwards, the competitors start to ease quite significantly. So, to your question, the shape of how we're going to grow in China or how we deliver the new business profit in China is likely to be slightly different from what you probably witnessed in 2020, in 2025.

Speaker #1: In terms of your second question on Singapore, we saw growth both across agencies and bancassurance on volumes. The challenge for us was the new rules that came in with respect to co-payment.

Anil Wadhwani: In terms of your second question on Singapore, we saw growth both across agency and bancassurance on volumes. The challenge for us was the new rules that came in with respect to co-payment. This is where we had to adjust to the new health guidelines that the government introduced, which had a knock-on impact, as you rightly pointed out, on margins.

Speaker #1: And this is where we had to adjust to the new health guidelines that the government introduced, which had a knock-on impact, as you rightly pointed out, on margins.

Speaker #1: In Singapore, we provide the entire spectrum of products, as you can imagine. And we have launched newer protection products to extend our health continuum.

Anil Wadhwani: In Singapore, we provide the entire spectrum of products, as you can imagine. We have launched newer protection products to extend our health continuum, as well as launch innovative products to address the needs of the high net worth and the ultra-high net worth customers. That kind of gives us the confidence that some of these shorter-term challenges around the changes to the health regulations, we will be able to offset that as we go through the H2 of this year. Remember, we are a household brand in Singapore, very strong on both agency as well as on account of our partnership with Standard Chartered and UOB in Singapore. I am going to stop there. I am going to go to Ben for the fee surplus question.

Speaker #1: As well as launch innovative products to address the needs of the high net worth and the ultra high net worth customers. And that kind of gives us the confidence that some of these shorter-term challenges around the health or the changes to the health regulations we will be able to offset that as we go through the second half of this year.

Speaker #1: Remember, we are a household brand in Singapore—very strong both on the agency side and thanks to our partnerships with Standard Chartered and UOB in Singapore.

Anil Wadhwani: Remember, we are a household brand in Singapore, very strong on both agency as well as on account of our partnership with Standard Chartered and UOB in Singapore. I am going to stop there. I am going to go to Ben for the fee surplus question.

Speaker #1: I'm going to stop there. I'll go to Ben for the free surplus questions.

Speaker #5: Yeah, thanks. Anil. Hi, Michael. So, look, we're very pleased with our progress on the capital generation front and very confident in delivering our 2027 OFSG targets of £4.4 billion.

Ben Bulmer: Yeah, thanks, Anil. Hi, Michael. We are very pleased with our progress on the capital generation front. Very confident in delivering our 2027 OFSG targets of $4.4 billion. There is a slide in the appendix to my presentation that sets out the development of the free surplus ratio. I think it is useful to think in terms of those building blocks when you model OFSG going forwards, beyond 2027. In short, the in-force generation, the expected transfer continues to grow strongly. As you know from our past comments, we have calibrated dividends and the additional recurring capital returns to be sustainable. Allowing for those, we expect to be at the upper end of our free surplus range. When you model that out, allow for the acceleration you referred to our objective of 4.4.

Speaker #5: There's a slide in the appendix to my presentation that sets out the development of the free surplus ratio. I think it's useful to think in terms of those building blocks.

Speaker #5: When you model OFSG going forwards, beyond 2027—look, in short, the in-force generation, the expected transfer, continues to grow strongly. I mean, as you know from our past comments, we've calibrated dividends and the additional recurring capital returns to be sustainable.

Ben Bulmer: In short, the in-force generation, the expected transfer continues to grow strongly. As you know from our past comments, we have calibrated dividends and the additional recurring capital returns to be sustainable. Allowing for those, we expect to be at the upper end of our free surplus range. When you model that out, allow for the acceleration you referred to our objective of 4.4.

Speaker #5: And allowing for those, we expect to be at the upper end of our free surplus range. So, when you model that out, allow for the acceleration you referred to, to our objective of 4.4.

Speaker #5: I think, as I've said before, I'd continue to guide you to required capital growing early double digit. I mentioned the sort of rough yardstick to use for new business strain earlier on this call.

Ben Bulmer: I think, as I have said before, I would continue to guide you to require capital growing early double digits. I mentioned the sort of rough yardstick to use for new business strain earlier on this call. Central costs will remain fairly flat, which I think then gives you all of the ingredients. Non-operating, a bit harder to give guidance on. As you know, that is the sort of market movements effects on regulatory balance sheets, some of which are not necessarily economic in nature. You can see from the slides that actually pre-capital returns, if you annualize it, we are generating mid-double-digit growth in the free surplus ratio. Hopefully that gives you a sense.

Speaker #5: Central costs will remain fairly flat, which I think then gives you all of the ingredients. Non-operating is a bit harder to give guidance on, as you know, that's the sort of market movements' effects on regulatory balance sheets.

Ben Bulmer: As you know, that is the sort of market movements effects on regulatory balance sheets, some of which are not necessarily economic in nature. You can see from the slides that actually pre-capital returns, if you annualize it, we are generating mid-double-digit growth in the free surplus ratio. Hopefully that gives you a sense.

Speaker #5: Some of which aren't necessarily economic in nature. And you can see from the slides that actually, pre-capital returns, if you annualize it, were generating mid double-digit growth in the free surplus ratio.

Speaker #5: So, hopefully that gives you a sense.

Speaker #2: Okay, thank you. Alex, next question, please.

Anil Wadhwani: Okay. Thank you. Alex, next question, please.

Patrick Bowes: Okay. Thank you. Alex, next question, please.

Speaker #4: Thank you. Our next caller is Michelle Marr from Citi. Your line is now unmuted. Please go ahead.

Operator: Thank you. Our next caller is Michelle Ma from Citi. Your line is now unmuted. Please go ahead.

Speaker #6: Thank you for giving me this opportunity. This is Michelle Marr from Citi Research. First, congratulations on the result despite a very challenging environment.

Michelle Ma: Thank you for giving me this opportunity. This is Michelle Ma from Citi Research. First, congratulations on the results despite a very challenging environment with a very high base. I have two questions. First is on CPL. I think 2026 is not a typical year, given so many kind of regulatory disruptions and the product mix changes. Just to wonder, given the par products already account for almost 80% in H1, and it resulted in some notable margin deterioration. Can we say we kind of finished the product mix change and currently we are quite satisfied with the product mix and next year there will not be such kind of drastic margin deterioration, and next year there will not be any kind of high base or wind loss disruption so that China business, we are confident to go back to the trajectory of high growth?

Speaker #6: The very high base. So, I have two questions. The first is on CTL. I think 2026 is not a typical year, given so many kinds of regulatory disruptions and the product mix changes.

Speaker #6: Just wondering, given that the POP products already account for almost 80% in the first half, and that resulted in some notable margin deterioration.

Speaker #6: Can we see can we say we kind of finished the product mix change and currently we are quite satisfied with the product mix and the next year there won't be like there won't be such kind of drastic margin deterioration.

Michelle Ma: Can we say we kind of finished the product mix change and currently we are quite satisfied with the product mix and next year there will not be such kind of drastic margin deterioration, and next year there will not be any kind of high base or wind loss disruption so that China business, we are confident to go back to the trajectory of high growth? This is my first question on margin deterioration and the sustainable level of growth for CPL.

Speaker #6: And next year, there won't be any kind of high base or one-off disruption. So, for that China business, we are confident it will go back to the trajectory of high growth.

Michelle Ma: This is my first question on margin deterioration and the sustainable level of growth for CPL. The second question is on Hong Kong. It is very interesting and we appreciate you share the result of your survey that in the next 12 months there are still 74% of them, they have planned to visit Hong Kong and 88% of them, they are going to buy insurance products. Just wondering if there is any more you can disclose of this survey because we are seeing the H&P product is growing faster. Have they disclosed which type of product they will be more interested given the ongoing concern over the taxation over the overseas insurance products? Just want to have a sense how our Hong Kong MCV, their product mix, we are going to change given you have done such a fantastic survey. Thank you.

Speaker #6: This is my first question on margin deterioration and the sustainable level of growth for CPR. The second question is on Hong Kong—it's very interesting.

Michelle Ma: The second question is on Hong Kong. It is very interesting and we appreciate you share the result of your survey that in the next 12 months there are still 74% of them, they have planned to visit Hong Kong and 88% of them, they are going to buy insurance products. Just wondering if there is any more you can disclose of this survey because we are seeing the H&P product is growing faster.

Speaker #6: And we appreciate you sharing the result of your survey that in the next 12 months, if there are still, like, 74% of BME, they have planned to visit Hong Kong.

Speaker #6: And 88% of them, they are going to buy insurance products. Just wondering if there is any more you can disclose from this survey, because we are seeing the HNP product is going faster.

Michelle Ma: Have they disclosed which type of product they will be more interested given the ongoing concern over the taxation over the overseas insurance products? Just want to have a sense how our Hong Kong MCV, their product mix, we are going to change given you have done such a fantastic survey. Thank you.

Speaker #6: Have they disclosed which type of product they will be more interested in, given the ongoing concern over the taxation of overseas insurance products?

Speaker #6: I just want to get a sense of how our Hong Kong MCV and their product mix are going to change, given you have done such a fantastic survey.

Speaker #6: Thank you.

Speaker #1: Hi, Michelle. Thanks for this question. So, let me start with the second one because, as you can imagine, we are in constant touch with our customers and with our agent partners, and we've kind of shared some of the slides in terms of the feedback that we are receiving.

Anil Wadhwani: Hi, Michelle. Thanks for this question. Let me start with the second one because as you can imagine, we are in constant touch with our customers and with our agent partners, and we have kind of shared some of the slides in terms of the feedback that we are receiving. In fact, I am happy to share, we have just received the feedback on the most recent survey that we conducted in August. The feedback is very much similar to what we have already kind of shared on our slides, which kind of gives us the confidence that the demand drivers as to why Chinese mainland visitors buy policies in Hong Kong pretty much remains intact. As I said, we will continue to kind of stay close because there is a lot of news flow, as you can imagine, right now.

Speaker #1: In fact, I'm happy to share we've just received the feedback on the most recent survey that we conducted in August, and the feedback is very much similar.

Anil Wadhwani: The feedback is very much similar to what we have already kind of shared on our slides, which kind of gives us the confidence that the demand drivers as to why Chinese mainland visitors buy policies in Hong Kong pretty much remains intact. As I said, we will continue to kind of stay close because there is a lot of news flow, as you can imagine, right now.

Speaker #1: To what we have already kind of shared on our slides, which kind of gives us the confidence that the demand drivers as to why Chinese mainland visitors buy policies in Hong Kong pretty much remain intact.

Speaker #1: And as I said, we will continue to stay close, because there's a lot of news flow, as you can imagine, right now.

Anil Wadhwani: We are in constant touch with both our agents as well as our customers. I am going to stop there and I am going to go to your CPL question on the H1, what are we doing in H2, and specifically the guidance on margin. Angel?

Speaker #1: And we are in constant touch with both our agents as well as our customers. So, I'm going to stop there, and I'm going to go to your CPL question on the first half.

Speaker #1: What are we doing in the second half, and specifically, what's the guidance on margin? Angel?

Speaker #3: Sure. Thank you, Anil. Thank you for the question, Michelle. I think you've rightly pointed out that this year, you are seeing two things happen.

Angel Ng: Sure. Thank you, Anil. Thank you for the question, Michelle. I think we have rightfully pointed out that this year, you are seeing two things happen in CPL. One is the regulatory change in the banker expense alignment, and the other one is the pronounced shift of the product mix shift to par. CPL, as you know, has been successfully shipped in the product mix to par, coming up from a low single digit to 40% last year. H1 is 76%. That gives a bit of a margin compression that you are seeing. However, we have quickly pivoted to protection business in Q2, especially in agency, which we are seeing quarter-on-quarter margin uplift already. H2, we will focus on protection product and optimizing margin for par savings product. In August, actually, many of the non-par products has been onboarded to most of our partners' banks.

Speaker #3: In CPL, one is the regulatory change in the banker expense alignment, and the other one is the pronounced shift of the product mix to par.

Speaker #3: So, CPL, as you know, has successfully shifted the product mix to PAR, coming up from a low single digit to 40% last year.

Speaker #3: And first half is 76. So, that gives a bit of margin compression, you know, that you are seeing. However, we have quickly pivoted to protection business in quarter two, especially in agency.

Angel Ng: That gives a bit of a margin compression that you are seeing. However, we have quickly pivoted to protection business in Q2, especially in agency, which we are seeing quarter-on-quarter margin uplift already. H2, we will focus on protection product and optimizing margin for par savings product. In August, actually, many of the non-par products has been onboarded to most of our partners' banks. So you will be expecting that full year, we want to normalize our par mix to about 60%. Back to you.

Speaker #3: We are seeing quarter-on-quarter margin uplift already. In the second half, we will focus on protection products and optimizing margin for par savings products.

Speaker #3: In August, actually, many of the non-PAR products have been onboarded to most of our partner banks, so you’ll be expecting that, for the full year, we want to normalize our PAR mix to about 60%.

Angel Ng: So you will be expecting that full year, we want to normalize our par mix to about 60%. Back to you.

Speaker #3: Back to you.

Anil Wadhwani: Michelle, just in terms of what you can expect from a margin perspective, we are right now working towards a full year margin in China of about 40%, versus 43% for the full year of 2025.

Speaker #2: And Michelle, just in

Speaker #1: In terms of what you can expect from a margin perspective, we are right now working towards a full-year margin in China of about 40%, versus 43% for the full year of 2025.

Speaker #2: Okay, thank you. Next question, please, Alex.

Patrick Bose: Okay. Thank you. Next question, please, Alex.

Patrick Bowes: Okay. Thank you. Next question, please, Alex.

Speaker #4: Thank you. Next caller is Farouk Hanif from JP Morgan. Your line is unmuted. Please go ahead.

Operator: Thank you. Our next caller is Farooq Hanif from JPMorgan. Your line is unmuted. Please go ahead.

Farooq Hanif: Hi. Thank you very much. Three questions, if I may. First one, actually, just taking everything you have just said on new business. You have given quite a lot of detail on building blocks. Just think it is very helpful, so thank you for that. I just want to look big picture. So you use the word firmly confident on new business profit, double-digit growth for 2026. I think in one key you said. Sorry. Firmly committed. In one key, you used the word confident. I just want to know from you, is there any change here? Do you think there is a very high probability you will deliver this, or are you trying to say, "Guys, we are trying our best, but it is an uncertain environment." I just want to understand the messaging that you are trying to give here, because I think there is a big debate about that this morning.

Speaker #5: Hi, thank you very much. Three questions, if I may. First one, actually, just taking everything you've just said on new business—you've given quite a lot of detail on building blocks, which is very helpful.

Speaker #5: Thank you for that. But I just want to look at the big picture. You used the words 'firmly confident' on new business profit double-digit growth for '26.

Speaker #5: I think in one case, you said, "Sorry, firmly committed." In one case, you used the word "confident." I just want to know from you—is there any change here?

Farooq Hanif: I think in one key you said. Sorry. Firmly committed. In one key, you used the word confident. I just want to know from you, is there any change here? Do you think there is a very high probability you will deliver this, or are you trying to say, "Guys, we are trying our best, but it is an uncertain environment." I just want to understand the messaging that you are trying to give here, because I think there is a big debate about that this morning.

Speaker #5: I mean, do you think there's a very high probability you will deliver this, or are you trying to say, guys, we're trying our best, but it's an uncertain environment?

Speaker #5: I just want to understand the messaging that you're trying to give here, because I think there's a big debate about that this morning. Second question is, long-term vision for India.

Farooq Hanif: Second question is, long-term vision for India. You are replacing a really big partnership in life, but with a low share, and it has lost market share in India for a much bigger partnership where you will have control and a health venture. At what point does this look greater than or equal to what you have already, in your estimation, given if we assume a world where you get regulatory approval, et cetera? My last question very quickly for Ben is, I noticed there has been some changes in the IFRS profit and the CSM and investment margin. Can you just give any guidance on some of those items? You talked about CSM growth already, but just on the investment margin and the other items. Thank you very much.

Speaker #5: You're replacing a really big partnership in life, but with a low share, and it's lost market share in India, for a much bigger partnership where you'll have control, and a health venture.

Speaker #5: I mean, at what point does this look greater than or equal to what you have already? In your estimation—assuming a world where you get regulatory approval, etc.

Speaker #5: And my last question, very quickly for Ben: I know there's been some changes in the IFRS profit and the CSM and investment margin.

Farooq Hanif: My last question very quickly for Ben is, I noticed there has been some changes in the IFRS profit and the CSM and investment margin. Can you just give any guidance on some of those items? You talked about CSM growth already, but just on the investment margin and the other items. Thank you very much.

Speaker #5: Can you just give any guidance on some of those items? I mean, you talked about CSM growth already, but just on the investment margin, any other items?

Speaker #5: Thank you very much.

Speaker #1: Thanks, Farouk. So, let me start with the first question on guidance. I'll go to Naveen on India, and the IFRS 17 to Ben.

Anil Wadhwani: Thanks, Farooq. Let me start with the first question on guidance. I will go to Naveen on India, and the IFRS one to Ben. The short answer is, we are not changing our 2026 guidance. As I have said, that we are firmly focused on executing against our H2 goals to get to that guidance, as well as firmly focused on our 2027 financial objectives. We have to navigate a couple of things. One is the high comparator base, both in Hong Kong and in China, in July and August, which materially starts to ease from September onwards. Again, we have given you a lot of color, both in terms of Hong Kong as well as in terms of the actions that we are enforcing in China to get the China trajectory back to where it needs to be.

Speaker #1: So, the short answer is, we are not changing our 2026 guidance. And as I've said, we are firmly focused on executing against our H2 goals to get to that guidance, as well as firmly focused on our 2027 financial objectives.

Speaker #1: We have to navigate a couple of things. One is the high comparative base both in Hong Kong and in China in July and August, which materially starts to ease from September onwards.

Anil Wadhwani: We have to navigate a couple of things. One is the high comparator base, both in Hong Kong and in China, in July and August, which materially starts to ease from September onwards. Again, we have given you a lot of color, both in terms of Hong Kong as well as in terms of the actions that we are enforcing in China to get the China trajectory back to where it needs to be.

Speaker #1: And again, we've given you a lot of color, both in terms of Hong Kong, as well as in terms of the actions that we are enforcing in China to get the China trajectory back to where it needs to be.

Speaker #1: The second is, we obviously have to go through the transition on the expense guidelines in bancassurance. And again, Angel kind of gave a little bit of color in terms of what you can expect both in terms of the new business launches, as well as what it would do to pivoting back to a much more balanced set of product mix.

Anil Wadhwani: The second is we obviously have to go through the transition on the expense guidelines in bancassurance. Again, Angel kind of gave a little bit of color in terms of what you can expect, both in terms of the new business launches as well as what it would do to pivoting back to a much more balanced set of product mix, and the knock-on impact it would have on improvements of margin versus what we witnessed in the H1 of this year. So those are the things that we are navigating, but at no point in time are we changing our guidance to 2026 as well as our belief in the 2027 financial objectives. I am going to stop there. I will go to the India question to Naveen, and then Ben, if you can pick up the IFRS one.

Speaker #1: And the knock-on impact it would have on improvements of margin versus what we witnessed in the first half of this year. So, those are the things that we are navigating.

Anil Wadhwani: So those are the things that we are navigating, but at no point in time are we changing our guidance to 2026 as well as our belief in the 2027 financial objectives. I am going to stop there. I will go to the India question to Naveen, and then Ben, if you can pick up the IFRS one.

Speaker #1: But at no point in time are we changing our guidance to 2026, as well as our belief in the 2027 financial objectives. I'm going to stop there.

Speaker #1: I'll go to the India question for Naveen, and then, Ben, if you can pick up the IFRS one.

Speaker #5: Okay, thanks, Anil. Hi, Farouk. As Anil already mentioned, Farouk, India is a strategic pivot for us in terms of how we approach the market.

Naveen Tahilyani: Okay. Thanks, Anil. Hi, Farooq. As Anil already mentioned, Farooq, India is a strategic pivot for us in terms of how we approach the market. Subject to regulatory approval of our life insurance transaction, we will have this very unique position in India of being the multinational insurer, which is straddling both the standalone health vertical as well as the life insurance vertical. We also have this unique position that we will be partnering with two exceptional corporate groups, HCL on the health insurance side and Bharti on the life insurance side. We believe these two platforms in partnerships with these excellent corporate groups will give us a significant opportunity to take a crack at the very large unmet protection gap on both mortality and morbidity side. That is the long-term thesis.

Speaker #5: And, subject to regulatory approval of our life insurance transaction, we will have this very unique position in India of being the multinational insurer which is straddling both the standalone health vertical as well as the life insurance vertical.

Speaker #5: And we also have this unique position that we'll be partnering with two exceptional corporate groups: at CL on the health insurance side, and Bharti on the life insurance side.

Naveen Tahilyani: We also have this unique position that we will be partnering with two exceptional corporate groups, HCL on the health insurance side and Bharti on the life insurance side. We believe these two platforms in partnerships with these excellent corporate groups will give us a significant opportunity to take a crack at the very large unmet protection gap on both mortality and morbidity side. That is the long-term thesis.

Speaker #5: And we believe these two platforms, in partnership with these excellent corporate groups, will give us a significant opportunity to take a crack at the very large unmet protection gap on both the mortality and morbidity side.

Speaker #5: So, that's the long-term thesis. Our priority in the next three to five years is really to build out a high-quality, profitable business. That's really what our aim is.

Naveen Tahilyani: Our priority in the next three to five years is really to build out a high-quality, profitable business. That is really what our aim is. The elements of that are that we believe that there are significant customer segments who have unmet needs. Interestingly, they range from the missing middle in the health to the high net worth on the life side to the cross-border opportunity on health as well. We will be very selective but very sharp about the opportunities that we look to target from these two platforms. Second, the big opportunity remains that we have an opportunity to build out agency in a quality manner, learning from what we have done in some of our other markets and focusing it on H&P.

Speaker #5: And the elements of that are that we believe there are significant customer segments who have unmet needs. And interestingly, they range from the "missing middle" in health, to the high net worth on the life side, to the cross-border opportunity on health as well.

Speaker #5: So, we will be very selective but very sharp about the opportunities that we look to target from these two platforms. Second, the big opportunity remains that we have a chance to build out agency in a quality manner, learning from what we have done in some of our other markets.

Naveen Tahilyani: We will be very selective but very sharp about the opportunities that we look to target from these two platforms. Second, the big opportunity remains that we have an opportunity to build out agency in a quality manner, learning from what we have done in some of our other markets and focusing it on H&P.

Speaker #5: And focusing it on health and protection. The Indian market, particularly on the life side today, remains very heavily savings and ILP-focused. We will be looking to have a differentiated play there.

Naveen Tahilyani: The Indian market, particularly on the life side today, remains very heavily savings and ILP-focused, and we will be looking to have a differentiated play there. Third, Bharti in particular, Bharti Life already has a bunch of bancassurance partnerships with some of the best banks in the country, and we will be looking to scale that up in addition to leveraging the partnership that we have with Standard Chartered on both the life and the health franchise. Last, I think within both HCL and Bharti, we have some very interesting opportunities in their ecosystem in both of these corporate groups. As an example, Bharti has 450 million customers, out of which 50 million are postpaid and high-value customers. India is a highly digital market.

Speaker #5: Third, Bharti in particular—Bharti Life already has a bunch of bancassurance partnerships with some of the best banks in the country. We’ll be looking to scale that up, in addition to leveraging the partnership that we have with Standard Chartered on both the life and health franchise.

Speaker #5: And last, I think within both HCL and Bharti, we have some very interesting opportunities in their ecosystems in both of these corporate groups. As an example, Bharti has 450 million customers, out of which 50 million are postpaid and high-value customers.

Naveen Tahilyani: Last, I think within both HCL and Bharti, we have some very interesting opportunities in their ecosystem in both of these corporate groups. As an example, Bharti has 450 million customers, out of which 50 million are postpaid and high-value customers. India is a highly digital market.

Speaker #5: India is a highly digital market. We'll be looking to innovate and invest in D2C and digital AI, to see how we can take a crack at this opportunity and look to convert a reasonable fraction of these customers to our protection products, both on the life and health side.

Naveen Tahilyani: We will be looking to innovate and invest in D2C digital AI to see how we take a crack at this opportunity and look to convert a reasonable fraction of these customers to our protection products, both on the life and health side. I think the last point I will make on India is that it is a very large geography. We will be focused on about in the next five years to your question, in about 100, 120 cities. We have a very disciplined geography strategy in terms of accessing revenue pools, but also balancing it with claims experience and profitability that we see and how we think about thoughtful build-out of these channels. Long story short, I think in the next five to 10 years, you should expect India to be a material franchise for us on multiple metrics.

Speaker #5: And I think the last point I will make on India is that it's a very large geography. We will be focused, in the next five years to your question, on about 100 to 120 cities.

Speaker #5: We have a very disciplined geography strategy in terms of accessing revenue pools, but also balancing it with claims experience and profitability that we see, and how we think about the thoughtful build-out of these channels.

Naveen Tahilyani: We have a very disciplined geography strategy in terms of accessing revenue pools, but also balancing it with claims experience and profitability that we see and how we think about thoughtful build-out of these channels. Long story short, I think in the next five to 10 years, you should expect India to be a material franchise for us on multiple metrics. But in the next five years, we are looking to just build out elements of the business that I outlined. Thank you.

Speaker #5: Long story short, I think in the next five to ten years, you should expect India to be a material franchise for us on multiple metrics.

Speaker #5: But in the next five years, we are looking to just build out the elements of the business that I outlined. Thank you.

Naveen Tahilyani: But in the next five years, we are looking to just build out elements of the business that I outlined. Thank you.

Speaker #1: Thanks, Naveen. Ben.

Anil Wadhwani: Thanks, Naveen. Ben?

Speaker #3: Yeah, hi Farouk. Thanks for your question. So, maybe it's best to refer to slide 34 in my pack. And just walking up that table, obviously we were very pleased with the 17% growth in OPAT per share.

Ben Bulmer: Yeah. Hi, Farooq. Thanks for your question. Maybe it is best to refer to slide 34 in my pack and just walking up that table. Obviously, we were very pleased with the 17% growth in OPAT per share, which meant underlying OPAT growth of 13%. The non-controlling interests reduction was related to Malaysia, of course, and that gave us a growth rate benefit. All of which got us to 9 points of operating profit before tax growth. Within that, and I have guided before, we will continue to keep central costs tightly controlled. My restructuring cost guidance of coming in for the full year at just under 100 million remains. Moving up to the total segment result, the key part of which or the largest part of which is, of course, insurance. We were very pleased with strong growth in the release from the CSM.

Speaker #3: Which meant underlying OPAC growth of 13%. The non-controlling interests reduction was related to Malaysia, of course, and that gave us a growth rate benefit.

Speaker #3: All of which got us to 9 points of operating profit before tax growth. Within that, and as I've guided before, we'll continue to keep central costs tightly controlled.

Ben Bulmer: Within that, and I have guided before, we will continue to keep central costs tightly controlled. My restructuring cost guidance of coming in for the full year at just under 100 million remains. Moving up to the total segment result, the key part of which or the largest part of which is, of course, insurance. We were very pleased with strong growth in the release from the CSM.

Speaker #3: My restructuring cost guidance of coming in for the full year at just under $100 million remains. Moving up to the total segment result, the key part of which, or the largest part of which, is of course insurance, we were very pleased with strong growth in the release from the CSM.

Ben Bulmer: That was somewhat curtailed by a lower net investment result that I previously guided to. That was driven by two things: one, asset de-risking in China, and two, lower surplus in our life businesses as a result of higher remittances. That effect will start to normalize somewhat on the growth rate as we progress through this year, and I would expect a net investment result that is a couple of points higher. Finally, there is the progress we are making on variances. As we accelerate into 2027, the benefits from that, plus lower investment in capabilities, will come through the earnings results.

Speaker #3: That was somewhat curtailed by a lower net investment result than I previously guided to. That was driven by two things: one, asset de-risking in China, and two, lower surplus in our life businesses as a result of high remittances.

Speaker #3: That effect will start to normalize somewhat on the growth rate as we progress through this year. And I'd expect a net investment result that's a couple of points higher.

Speaker #3: Finally, there's the progress we're making on variances. As we accelerate into 2027, the benefits from that, plus lower investment in capabilities, will show through in the earnings results.

Speaker #3: So, I think, stepping back, given the strong structural growth in the CSM since the inception of IFRS 17 to now—and now I think our CSM is about 30% higher than it was then—and what I just mentioned on improving underlying variances, I'm very confident in the double-digit EPS growth outlook for the group on an IFRS basis.

Ben Bulmer: I think stepping back, given the strong structural growth in the CSM since inception of IFRS 17 to now, and now I think our CSM is about 30% higher than it was then. What I just mentioned on improving underlying variances, I am very confident in the double-digit EPS growth outlook for the group on an IFRS basis.

Speaker #1: Okay. Thanks, Ben.

Anil Wadhwani: Okay. Thanks, Ben.

Patrick Bowes: Okay. Thanks, Ben.

Speaker #3: Thank you.

Ben Bulmer: Thank you.

Anil Wadhwani: Alex, I want to be respectful of people's time. We have to shortly close down. We have three more questions that we are going to take. Can we have a bit of rapid-fire questioning, and we will do the rapid-fire answering. Next one please, Alex.

Patrick Bowes: Alex, I want to be respectful of people's time. We have to shortly close down. We have three more questions that we are going to take. Can we have a bit of rapid-fire questioning, and we will do the rapid-fire answering. Next one please, Alex.

Speaker #1: Alex, I want to be respectful of people's time. We’ve got to wrap up shortly. We’ve got three more questions that we’re going to take.

Speaker #1: Can we have a bit of rapid-fire questioning, and we'll do the rapid-fire answering? Next one, please, Alex.

Speaker #4: Thank you. Our next caller is William Hawkins from KBW. Your line is now unmuted. Please go ahead.

Operator: Thank you. Our next caller is William Hawkins from KBW. Your line is now unmuted. Please go ahead.

William Hawkins: Thanks, Patrick, for prejudicing me. First question, please. I am still trying to understand the outlook for new business growth. I am sorry about that, but could you just pause again on the growth markets, and in H2, should they be accelerating from the 10% that you have achieved in H1 because of the good stuff like Thailand and Vietnam that you are referring to? Or is there still a risk that they are decelerating because there is other big moving parts like Taiwan? I am sorry, that is quite a significant division and I am still not quite clear about the different moving parts in that. I would have thought longer term, the growth markets should be blowing through your double-digit target, not kind of just making up with the double-digit target. I am just trying to get comfortable on that short-term and long-term, please.

Speaker #3: Thanks, Patrick. For prejudicing me—first question, please. I'm just trying to... I am still trying to understand the outlook for new business growth. I'm sorry about that.

Speaker #3: But could you just pause again on the growth markets? And in the second half, should they be accelerating from the 10% that you've achieved in the first half because of the good stuff like Thailand and Vietnam that you're referring to?

Speaker #3: Or is there still a risk that they're decelerating? Because there are other big moving parts, like Taiwan. So, I'm sorry, that's quite a significant division, and I'm still not quite clear about the different moving parts in that.

William Hawkins: I am sorry, that is quite a significant division and I am still not quite clear about the different moving parts in that. I would have thought longer term, the growth markets should be blowing through your double-digit target, not kind of just making up with the double-digit target. I am just trying to get comfortable on that short-term and long-term, please.

Speaker #3: And I would have thought, longer term, the growth markets should be blowing through your double-digit target, not kind of just making up with the double-digit target.

Speaker #3: So I'm just trying to get comfortable on that short-term and long-term, please. And then secondly—and I'll just keep it at two questions—again, you've already talked convincingly about productivity and the MDRT and the agency channel.

William Hawkins: Secondly, I will just keep it at two questions. Again, you have already talked convincingly about productivity and the MDRT in the agency channel. I am still slightly disappointed that there was a decline in the total number of active agents down to the 55,000. I had thought that with Malaysia stabilizing, we would be back into kind of growth in that number. I appreciate there is improvement in quality. I am still slightly uncertain about the quantity. From your point of view, do you just not care because that is a very bad metric, so long as you have got the other metrics working? Or at some point, should the active agents be returning to growth? If so, can you give me a thought process about the timeline for that, please? Thank you.

Speaker #3: I'm still slightly disappointed that there was a decline in the total number of active agents down to 55,000. I had thought that, with Malaysia stabilizing, we'd be back into growth in that number.

Speaker #3: So I appreciate those improvements in quality. I'm still slightly uncertain about the quantity. So, from your point of view, do you just not care because that's a very bad metric as long as you've got the other metrics working?

William Hawkins: I appreciate there is improvement in quality. I am still slightly uncertain about the quantity. From your point of view, do you just not care because that is a very bad metric, so long as you have got the other metrics working? Or at some point, should the active agents be returning to growth? If so, can you give me a thought process about the timeline for that, please? Thank you.

Speaker #3: Or, at some point, should the active agents be returning to growth? And if so, can you give me a thought process about the timeline for that, please?

Speaker #3: Thank you.

Speaker #1: Thanks. Thanks, William. So, on your question on growth markets, we believe that we have a range of markets in that segment that will continue to perform quite well as we look to the second half.

Anil Wadhwani: Thanks, William. On your question on growth markets, we believe that we have a range of markets in that segment that will continue to perform quite well as we look to H2. You could expect a double digit to probably a mid-teens growth, in the new business profit growth for these markets. Because, as you rightly pointed out, there are significant markets like Taiwan. Thailand has done exceptionally well for us. Africa continues to kind of grow very well. So you could expect, as I said, double digit to mid-teens growth as we go through H2. On the whole agency piece, before I kind of hand it over to Naveen, the focus on quality has been quite deliberate. We are pressing two levers, William. One is, as you said, quality recruitment, driving active agents.

Speaker #1: So you could expect a double-digit to probably a mid-teens growth in the new business profit growth for these markets. Because, as you rightly pointed out, there are significant markets like Taiwan—Thailand has done exceptionally well for us.

Anil Wadhwani: Thailand has done exceptionally well for us. Africa continues to kind of grow very well. So you could expect, as I said, double digit to mid-teens growth as we go through H2. On the whole agency piece, before I kind of hand it over to Naveen, the focus on quality has been quite deliberate. We are pressing two levers, William. One is, as you said, quality recruitment, driving active agents.

Speaker #1: Africa continues to kind of grow very well. So you could expect, as I said, double-digit to mid-teens growth as we go through the second half.

Speaker #1: On the whole agency piece, before I can hand it over to Naveen, the focus on quality has been quite deliberate. And we are pressing two levers, William.

Speaker #1: One is, as you've said, quality recruitment driving active agents. And we've launched a number of initiatives in that regard to be able to press forward, not only in developed but also in emerging ASEAN markets.

Anil Wadhwani: We've launched a number of initiatives in that regard, to be able to press forward not only in developed but also in emerging ASEAN markets. The second is productivity. You've seen year after year, we have shown measurable improvements on productivity. Firstly, because from a demand side, we are getting demand for high-quality advice. On the second front, we are also up-gearing our propositions to emerging affluent as well as to affluent customers. I'm going to stop there. I'm going to have Naveen provide you a little bit of additional color on productivity versus active agents.

Speaker #1: And the second is productivity. And you've seen year after year, we have shown measurable improvements in productivity. Firstly, because we are getting, from the demand side, we are getting demand for high-quality advice.

Speaker #1: But on the second front, we are also up-tiering our propositions to emerging affluent, as well as to affluent, customers. I'm going to stop there.

Speaker #1: I'm going to have Naveen provide you with a little bit of additional color on productivity versus active agents.

Speaker #2: Thanks, Anil. Under instruction from Patrick, I'll keep the answer rapid-fire and focused. I think, just coming to your specific question on actives, I just want to partition the problems.

Naveen Tahilyani: Thanks, Anil. Under instruction from Patrick, I'll keep the answer rapid fire and focused. Coming to your specific question on actives, I just want to partition the problem. Firstly, on the developed markets, as you have seen from 2023 to 2025, we've grown our actives by 15% per annum, more than 15% per annum. H1 this year, developed markets, Hong Kong, Singapore, actives are stable because of high comparators and particular circumstances which we have talked of. Our problem in terms of decline of actives historically has been emerging ASEAN. I just wanted to partition the problem and focus it on emerging ASEAN. Within emerging ASEAN, if you look at our three biggest markets, Malaysia, Indonesia, Philippines. Malaysia, as I mentioned, has grown actives at 10%. Prudential Assurance Malaysia Berhad has grown actives at 10% in H1 this year.

Speaker #2: Firstly, on the developed markets, as you have seen from '23 to '25, we've grown our actives by more than 15% per annum.

Speaker #2: In H1 this year, in developed markets—Hong Kong, Singapore—actives are stable because of high competition and particular circumstances, which we have talked about. So our problem, in terms of decline of actives historically, has been in emerging ASEAN.

Naveen Tahilyani: Our problem in terms of decline of actives historically has been emerging ASEAN. I just wanted to partition the problem and focus it on emerging ASEAN. Within emerging ASEAN, if you look at our three biggest markets, Malaysia, Indonesia, Philippines. Malaysia, as I mentioned, has grown actives at 10%. Prudential Assurance Malaysia Berhad has grown actives at 10% in H1 this year.

Speaker #2: I just wanted to partition the problem and focus it on emerging ASEAN. Within emerging ASEAN, if you look at our three biggest markets—Malaysia, Indonesia, and the Philippines—Malaysia, as I mentioned, has grown actives at 10%.

Speaker #2: Malaysia Life has grown actives at 10% in H1 this year. And coming to Indonesia and the Philippines, where our agency transformation remains very much in flight, we will look to improve actives.

Naveen Tahilyani: Coming to Indonesia and Philippines, where our agency transformation remains very much in flight. We will look to improve actives, there is no doubt about that. It is not a metric we don't care about, just to be super clear about that. What we care also about is the quality of these actives. I take you back to the point that we made on the Pru Ventures recruits, right? If they are 6x the productivity of normal recruits, every one of those actives is 6 times a normal active, right? We are actually pivoting away from this model of mass recruitment, part-time agency in Indonesia, Philippines and Malaysia to quality recruitment full-time agency. Therefore, our actives will grow, but more importantly, the quality of those actives will also grow as we move forward. Thank you.

Speaker #2: There is no doubt about that. It is not a metric we don't care about, just to be super clear about that. But what we also care about is the quality of these actives.

Speaker #2: And I take you back to the point that we made on the Pro-Venture recruits, right? If they are six times the productivity of normal recruits, every one of those actives is six times a normal active, right?

Naveen Tahilyani: If they are 6x the productivity of normal recruits, every one of those actives is 6 times a normal active, right? We are actually pivoting away from this model of mass recruitment, part-time agency in Indonesia, Philippines and Malaysia to quality recruitment full-time agency. Therefore, our actives will grow, but more importantly, the quality of those actives will also grow as we move forward. Thank you.

Speaker #2: We are actually pivoting away from this model of mass recruitment, part-time agency, in Indonesia, Philippines, and Malaysia to quality recruitment, full-time agency. Therefore, our actives will grow, but more importantly, the quality of those actives will also grow as we move forward.

Speaker #2: Thank you.

Speaker #4: Great, thank you. Okay, let's go to the next one, Alex. Time runs on.

Anil Wadhwani: Great. Thank you.

Patrick Bowes: Great. Thank you.

William Hawkins: Thank you very much.

Anil Wadhwani: Okay. Let's go to the next one, Alex. Time runs on.

Patrick Bowes: Okay. Let's go to the next one, Alex. Time runs on.

Speaker #3: Thank you. Our next caller is Abid Hussein from Panma Liberum. Your line is now unmuted. Please go ahead.

Operator: Thank you. Our next caller is Abid Hussain from Panmure Liberum. Your line is now unmuted. Please go ahead.

Abid Hussain: Oh, hello. Hi there. Thanks for taking my question. I will try to be quick. The first one is on the tax enforcement and the noise around that. Just wondering if you can share what proportion of the in-force business earnings or EV comes from the MCV par savings or other investment business that might be exposed to that tax enforcement, and whether you have seen any lapse behavior changes in the recent weeks. That is the first one. The second one is just following on from the previous question on the agency. Obviously the decline in the agency, the total 55K number, the decline is slowing. Are you trying to build to a particular number that you are trying to get to on the 55K? It seems like you are pivoting away, so it might mean that we should see further declines.

Speaker #4: Oh, hello. Hi there. Thanks for taking my question. I'll try to be quick. So the first one is on the tax enforcement and the sort of noise around that.

Speaker #4: Just wondering if you can share what proportion of the enforced business earnings or EV comes from the MTV Par Savings or other investment businesses—other investment business that might be exposed to that tax enforcement.

Speaker #4: And whether you've seen any lapse behavior changes in recent weeks? That's the first one. And then the second one is just following on from the previous question on the agency.

Abid Hussain: The second one is just following on from the previous question on the agency. Obviously the decline in the agency, the total 55K number, the decline is slowing. Are you trying to build to a particular number that you are trying to get to on the 55K? It seems like you are pivoting away, so it might mean that we should see further declines.

Speaker #4: So obviously, the decline in the agency, the total 55K number, the decline is slowing. But just are you trying to build a particular number that you're trying to get to on the 55K?

Speaker #4: It seems like you're pivoting away, so it might mean that we should see further declines. I just want to get my head around that bit.

Abid Hussain: I just want to get my head around that bit. Just very quickly, final question on Eastspring. It looks like there is a 2 bps revenue margin decline and the cost-income ratio has gone up. Just wondering what is driving that and where should we expect that to end up. Thank you.

Speaker #4: And it's very, very quickly. Final question on eSpring. It looks like there's a sort of two basis points revenue margin decline, and the cost-income ratio is going up.

Speaker #4: Just wondering what's driving that, and where should we expect that to end up? Thank you.

Speaker #1: Hi, Abid. So, let me first answer the agency question. I'll go to the tax enforcement and the enforce point, Ben, and then Rajiv can pick up your cost-to-income ratio point.

Anil Wadhwani: Hi, Abid. Let me first answer the agency question. I will go to the tax enforcement and the in-force point to Ben, and then Rajiv can pick up your cost-to-income ratio point. On the agency, as we have said many a times, we are pressing both levers. We are pressing the productivity lever as well as the quality recruitment leading up to the active agents. We would like to see the active agents start to grow. There is no question about it. Naveen articulated some of the measures that we are enforcing, specifically in the emerging ASEAN markets, moving away from a mass recruitment model to a more high-quality model. The reason we are doing that, as I said, is on two counts. One is the customers are demanding high quality of advice. The second is that we are pushing our propositions to more affluent and high-net-worth customers.

Speaker #1: So, on the agency, as we've said many times, we are pressing both levers. We are pressing the productivity lever as well as quality recruitment, leading up to the active agents.

Speaker #1: We would like to see the number of active agents start to grow—there's no question about it. And Naveen articulated some of the measures that we are enforcing, specifically in the emerging ASEAN markets, moving away from a mass recruitment model to a more high-quality model.

Anil Wadhwani: Naveen articulated some of the measures that we are enforcing, specifically in the emerging ASEAN markets, moving away from a mass recruitment model to a more high-quality model. The reason we are doing that, as I said, is on two counts. One is the customers are demanding high quality of advice. The second is that we are pushing our propositions to more affluent and high-net-worth customers.

Speaker #1: The reason we are doing that, as I said, is on two counts. One is that customers are demanding a higher quality of advice, and the second is that we are pushing our propositions to more affluent and high-net-worth customers.

Speaker #1: So absolutely, we would like to grow the active agent base, but in tandem and in sync with the productivity improvements over a period of time.

Anil Wadhwani: Absolutely, we would like to grow the active agent base, but in tide and in sync with the productivity improvements over a period of time. I am going to go to Ben for in-force and then Rajiv, if you can pick it up, on the cost-to-income ratio on ESI.

Speaker #1: I'm going to go to Ben for Enforce, and then Rajiv, if you can pick it up on the cost-to-income ratio on ASI.

Speaker #4: Yeah. Hi, Abid. Thanks for the question. So, in terms of our Hong Kong business, about half of the VIF relates to Mainland China visitors.

Ben Bulmer: Yeah. Hi, Abid. Thanks for the question. In terms of our Hong Kong business, about half of the VIF relates to China mainland visitors. Of that, 55% is H&P products, to give you a sense. Of the remaining saving proportion, our savings products naturally have protection features embedded within them, so they are not pure savings or wealth products. No impact to lapses. Persistency, retention ratios, phenomenally strong. The majority of the payments, 95% plus for these products, come from funds already made here in Hong Kong. So it is high quality, sticky business. People are not buying these products for some sort of tax reason.

Speaker #4: Of that, 55% is health and protection products, actually. To give you a sense, actually, of the remaining savings proportion, our savings products naturally have protection features embedded within them.

Speaker #4: So, they're not pure savings or wealth products. No impact to lapses. Persistency and retention ratios are phenomenally strong. And the majority of the payments—95% plus—for these products come from funds already made here in Hong Kong.

Ben Bulmer: No impact to lapses. Persistency, retention ratios, phenomenally strong. The majority of the payments, 95% plus for these products, come from funds already made here in Hong Kong. So it is high quality, sticky business. People are not buying these products for some sort of tax reason.

Speaker #4: So it's high-quality, sticky business. People aren't buying these products for some sort of tax reason.

Speaker #1: Rajiv, you want to pick up the...

Anil Wadhwani: Rajiv, you want to pick up the-

Rajeev Mittal: Yeah

Speaker #3: Yeah. Thanks. Yeah, that's sure.

Anil Wadhwani: The response to-

Rajeev Mittal: Thanks. Yeah.

Anil Wadhwani: Yeah, the cost income one.

Speaker #1: For sure.

Rajeev Mittal: Sure. Abid, thanks, Anil. Yes, absolutely. Look, we had a very strong set of results in H1, as you can see in the deck. Strong inflows, as well as very strong investment performance across our capabilities. The cost-income ratio decline is largely due to the IPMC sell down mechanics, and that is really what has driven the cost-income ratio to increase. But overall, our business mix has been very positive. Fee income ratios remain strong, and we are very pleased with the H1 results.

Speaker #3: Yeah, thanks. Thanks, Neil. Yeah, absolutely. Look, we had a very strong set of results in the first half, as you can see in the deck—strong inflows, as well as very strong investment performance across our capabilities.

Speaker #3: The cost-income ratio decline is largely due to the IPAMC sell-down mechanics, and that's really what's driven the cost-income ratio to increase. But overall, our business makes—has been very positive.

Speaker #3: Fee income ratios remain strong, and we're very pleased with the first-half results.

Speaker #4: Okay. Thank you, Rajiv.

Abid Hussain: Good. Thank you, Rajiv.

Speaker #3: Thank you.

Patrick Bose: Thank you.

Rajeev Mittal: Thank you.

Patrick Bose: Last one, Alex, then we will draw close.

Speaker #4: And the last one, Alex, and then we will draw to a close.

Patrick Bowes: Last one, Alex, then we will draw close.

Speaker #3: Thank you. Yes, our final caller is Thomas Wang from Goldman Sachs. Your line is now unmuted. Please go ahead.

Operator: Thank you. Yes. Our final caller is Thomas Wang from Goldman Sachs. Your line is now unmuted. Please go ahead.

Speaker #5: Thank you. Thank you for giving me this opportunity to ask the last couple of questions. Maybe firstly, if I go back to mainland China, just to clarify—in the announcement, you said that full year '26 MBP will be similar to full year '25.

Thomas Wang: Thank you. Thank you for giving me this opportunity to ask the last couple questions. Maybe firstly, if I go back to mainland China, just to clarify, in the announcement, you said the full year 2026 NBP will be similar to full year 2025. That is on the CER basis, right? Which would roughly imply H2 will be somewhere around 10% growth. Is that the right interpretation there?

Speaker #5: So that's on the CER basis, right? So, which would roughly imply the second half will be somewhere around 10% growth. Is that the right interpretation there?

Anil Wadhwani: Short answer is

Thomas Wang: And then, sorry,

Speaker #5: I understand.

Speaker #1: Sorry, you had one more question. Go ahead—please, go ahead.

Anil Wadhwani: Sorry, you had one more question. Go ahead. Go ahead, please.

Speaker #5: Yeah, yeah, sorry. And the second question is just on the Hong Kong margin. So, very, very good to see the margin expansion in the first half.

Thomas Wang: Yeah. Sorry. The second question is just on the Hong Kong margin. Very good to see the margin expansion in H1. Just wondering whether you can give a little color on what is driving that, the expense savings. If it is product mix, what type of product? Or is it premium term have lengthened? Just a little color on that would be great. Thanks.

Speaker #5: I just wondered whether you can give a little bit of color on what's driving that expense savings, because I don't think it's product mix. So, what type of product, or is it just that premium term have lengthened?

Speaker #5: Just a little bit of color on that would be great. Thanks.

Speaker #1: Thanks, Thomas. So, on the China question, I guess the short answer is it is on a CER basis. When we speak to the guidance for the full year, which is a similar range compared to what we witnessed in the full year 2025.

Anil Wadhwani: Thanks, Thomas. On the China question, I guess the short answer is, it is on CER basis. We speak to the guidance for the full year, which is similar range as compared to what we witnessed in full year 2025. So you are right there. On HK margins, I am going to go to Ben to provide you some additional color in terms of what is driving that.

Speaker #1: So, you're right there. On HK margins, I'm going to go to Ben to provide you some additional color in terms of what's driving that.

Speaker #4: Yeah. Hi, Thomas. Two things, really, on the margin side. One is improved mix. We’ve done well on the HMP side of things in Hong Kong, both with Mainland China visitors and the domestic segment, actually.

Ben Bulmer: Sure. Hi, Thomas. Two things really on the margin side. One is improved mix. We have done well on the H&P side of things in Hong Kong, both with MCV and the domestic segment, actually. So that has given our margins a boost. On a number of policies basis, actually, we are 57% to 58% of our product is H&P, so we are pleased with that. There was also a little bit of the shift in mix in terms of some of our savings and protection products as a result of repricing. That gave us an additional boost there. So we are pleased with the margin uplift.

Speaker #4: So that's given our margins a boost. On a number of policies basis, actually, 57 or 58 percent of our product is HMP, so we're pleased with that.

Speaker #4: There was also a little bit of a shift in mix in terms of some of our savings and protection products as a result of repricing.

Speaker #4: That gave us an additional boost there, so we're pleased with the margin uplift.

Speaker #1: Okay. Thanks, Ben and Neil. I'm going to pass back to Anil to quickly close off the call. Thank you for listening in. He has some closing remarks.

Patrick Bose: Okay. Thanks, Ben and Anil. I am going to pass back to Anil to quickly close off the call. Thank you for listening in. He has got some closing remarks.

Patrick Bowes: Okay. Thanks, Ben and Anil. I am going to pass back to Anil to quickly close off the call. Thank you for listening in. He has got some closing remarks.

Speaker #2: Thanks, Patrick. And thanks, everyone, for those questions. We are going to be on the roadway shortly, so we will be getting an opportunity to continue this conversation face to face as well.

Anil Wadhwani: Thanks, Patrick, and thanks everyone for those questions. We are going to be on the road very shortly, so we would be getting an opportunity to further this conversation face-to-face as well. I do want to call out the tremendous dedication and the hard work of our people who have been driving the transformation now for almost four years. You can start to see some of the fruits of labor coming through in our set of results. I also wanted to take the opportunity to welcome Sir Douglas Flint, who is our new Chair and has recently chaired his first board meeting. I, along with the management team, are looking forward to working with Sir Douglas and the rest of the board as we continue to deliver on our financial objectives. Thank you very much, and we will be staying in touch as we get on the road.

Speaker #2: But I do want to call out the tremendous dedication and hard work of our people, who have been driving the transformation now for almost four years.

Speaker #2: And you can start to see some of the fruits of labor kind of coming through in our set of results. I also wanted to take the opportunity to welcome Sir Douglas Flint, who's our new Chair and has recently chaired his first board meeting.

Anil Wadhwani: I also wanted to take the opportunity to welcome Sir Douglas Flint, who is our new Chair and has recently chaired his first board meeting. I, along with the management team, are looking forward to working with Sir Douglas and the rest of the board as we continue to deliver on our financial objectives. Thank you very much, and we will be staying in touch as we get on the road. Hopefully, we get an opportunity to see you in person. Thank you.

Speaker #2: I, along with the management team, am looking forward to working with Sir Douglas and the rest of the Board as we continue to deliver on our financial objectives.

Speaker #2: Thank you very much. We will be staying in touch as we get on the road, and hopefully, we will have an opportunity to see you in person.

Anil Wadhwani: Hopefully, we get an opportunity to see you in person. Thank you.

Speaker #2: Thank you.

Speaker #4: Thank you, Alex. You can close the call now.

Patrick Bose: Thank you, Alex. You can close the call now.

Patrick Bowes: Thank you, Alex. You can close the call now.

Operator: Thank you everyone for attending. You may now disconnect your lines.