European Insurance News & Views "Prudential plc sensitivity on potential..."

Research evidence excerpt

European Insurance News & Views "Prudential plc sensitivity on potential..."

Global Research

26 May 2026ab

European Insurance News & Views Equities

Europe including UKPrudential plc sensitivity on potential HK

business disruption Financial

Nasib Ahmed, FIA

Analyst

nasib-za.ahmed@ubs.com

Headline: Prudential plc sensitivity on potential HK business disruption +44-20-7568 8231

Will Hardcastle, CFA

There was a crackdown from Chinese authorities on cross-border flows from securities Analyst

companies last week (see Fast Take here). Our Asian analysts have published on the topic will.hardcastle@ubs.com

(see here) and we summarise potential implications for Pru if there is a stop to cross- +44-20-7567 9763

border insurance sales below. Qian Lu

UBS Summary: qian-za.lu@ubs.com

+44-20-7567 4657

Chloe RyanLimited read-across: We note limited read-across for cross-border insurance sales for

Associate Analyst

Pru's HK business, because: 1) Mainland Chinese Visitor (MCV) insurance business for

chloe.ryan@ubs.com

Pru is all conducted while customers are physically present in HK; 2) Regulations +44-20-7567 3505

in China and HK both allow MCV insurance business (e.g. HK does not have

nationality based restrictions on insurance business, and China clarified in 2004 that all

insurance policies purchased locally were compliant with laws); 3) Policy direction

continues to look for integration of HK/China insurance industries.

Pru MCV business sensitivity: We have experienced MCV sales falling to zero during

the pandemic lockdown period. We provide sensitivities to our valuation below, which

includes: 1) Removal of new business from MCVs (estimated at c.30% of Pru's group

new business); 2) A 30% haircut to the HK Embedded Value for follow-on effects

(e.g.