Prudential Plc Minor model updates for Prudential, post 1Q26 trading update and market movements

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Prudential Plc Minor model updates for Prudential, post 1Q26 trading update and market movements

C A Z E N O V E Europe Equity Research

15 May 2026

Prudential Plc Overweight

PRU.L, PRU LN

Minor model updates for Prudential, post 1Q26 trading Price (14 May 26):1,168p

update and market movements Price Target (Dec-27):1,480p

We make some minor adjustments to our forecasts after the 1Q26 trading update, European Insurance

ACwhich reported new business profits overall that were close to our forecasts. We Farooq Hanif

also take this opportunity to fine-tune other parts of our forecasts, particularly (44 207) 742-8091

updating for higher equity markets and higher bond yields (net positive on both farooq.hanif@jpmorgan.com

CSM and embedded value). These changes result in a ~0.5% increase to our EPS Bingdi Fan, CFA

estimates over 2026-28, which also takes into account an updated view of share (44-20) 7742-5336

count from future buybacks. We summarise the key changes to our estimates in bingdi.fan@jpmorgan.com

Figure 1Prudential-sumaryofchangestoourestimates. Kamran M Hossain

(44-20) 3493-3780

We remain OW on Prudential, which at ~10x 2027E P/E trades at a ~20% discount kamran.hossain@jpmorgan.com

to the European insurance sector, despite more than double the EPS growth Nadia Claressa

potential. It offers attractive capital returns in this growth context, with a ~5% total (44-20) 7134-7613

nadia.claressa@jpmorgan.com

capital return yield in 2026E-27E and double-digit growth potential. We expect J.P. Morgan Securities plc

Prudential to meet or exceed its double-digit new business profit growth ambitions,

and our analysis suggests that even if recent active agent growth has disappointed, Specialist Sales contact details: