Prudential: Mainland Chinese Visitors’ Rush to Buy Hong Kong Insurance Shows No Signs of Slowing; China Life’s H1 Net Profit Soars 228%

The Hong Kong insurance market delivered a stellar performance in the first half of 2026, as two industry giants—Prudential (02378.HK) and China Life Insurance (02628.HK)—simultaneously released interim results showcasing impressive operating figures driven by cross-border insurance demand and investment returns respectively. Prudential CEO Anil Wadhwani stated unequivocally at the earnings briefing that demand from mainland Chinese visitors for Hong Kong insurance products has not weakened due to adjustments in tax regulations on overseas asset income, and he expects underwriting momentum to persist through the second half of the year.

Wadhwani noted that the core drivers behind mainland customers purchasing Hong Kong policies stem from three key needs: wealth succession, savings and investment, and medical protection. These structural factors have not been affected by short-term policy changes. He emphasized that the relevant tax provisions merely reinforce existing regulations rather than impose entirely new restrictions. The average policy size for mainland visitors remains stable, ranging between $17,000 and $18,000, approximately NT$540,000 to NT$570,000.

From a business structure perspective, Prudential has proactively adapted its product design to market trends. Wadhwani said that since the pandemic, mainland visitors have shown a clear preference for savings-type products, and the company deliberately integrated savings elements into protection-type insurance. The strategy has proven effective, with protection-type products still contributing nearly one-third of premium income. Business conditions in July and August remained stable, reflecting ample resilience in near-term demand.

Regarding the regional distribution of Hong Kong business, Wadhwani revealed a balanced split between local and mainland customers, with 50% of business coming from Hong Kong local clients and 50% from mainland visitors. He expressed satisfaction with the current state of Hong Kong operations and believes the strong performance of the local business will support the group in achieving its double-digit growth target for Hong Kong this year.

Prudential’s interim financial data corroborates its operational momentum. For the six months ended June 30, 2026, new business profit grew 8% to $1.384 billion, adjusted operating profit before tax rose 9% to $1.812 billion, and adjusted operating profit after tax increased 10% to $1.523 billion. Earnings per share based on adjusted operating profit stood at 58.4 cents, with the first interim dividend raised 15% to 8.88 cents per share.

On capital returns, Prudential announced an additional approximately $300 million in share buybacks on top of the previously announced $1.2 billion for 2026 and $1.3 billion for 2027 programs, to be completed by December 18, 2026. Wadhwani stressed that the company will continue to focus on achieving double-digit growth guidance for full-year 2026 new business profit, total operating free surplus, and adjusted earnings per share, while also raising dividends per share at a double-digit pace.

The other insurance giant, China Life Insurance, also delivered explosive interim growth. The company’s net profit attributable to shareholders reached RMB 134.49 billion (approximately $20 billion) for the first half, surging 228.6% year-on-year, with earnings per share of RMB 4.76. The board recommended an interim cash dividend of RMB 3.58 per 10 shares (pre-tax), bringing total interim cash dividends to RMB 10.12 billion (approximately $1.5 billion), up 50.4% year-on-year.

China Life’s profit surge was primarily driven by a significant improvement in investment income. Total investment income for the first half reached RMB 314.5 billion (approximately $46.8 billion), an increase of RMB 187 billion (approximately $27.8 billion) compared to the same period last year. Total investment yield reached 5.58%, up 229 basis points year-on-year. Revenue for the group came in at RMB 434.56 billion (approximately $64.7 billion), up 81.5% year-on-year.

On business quality metrics, China Life’s new business value reached RMB 38.17 billion (approximately $5.7 billion), up 33.7% year-on-year, continuing to lead the industry. New policy premiums reached RMB 180.04 billion (approximately $26.8 billion), up 11.6% year-on-year. First-year regular premiums surpassed the RMB 100 billion mark within a half-year period for the first time, reaching RMB 101.29 billion (approximately $15.1 billion), up 24.7% year-on-year, firmly holding the top spot in the industry. Among these, first-year regular premiums with terms of ten years or longer reached RMB 36.12 billion (approximately $5.4 billion), up 19.2% year-on-year, accounting for 35.66% of total first-year regular premiums, solidifying long-term competitive advantages.

In terms of product mix, China Life continued to deepen its diversified development strategy. Life insurance, annuity insurance, and health insurance accounted for 22.80%, 42.49%, and 31.55% of new policy premiums respectively, with floating-return products achieving strong growth. As of the end of the reporting period, the company’s total assets reached RMB 8.09 trillion, investment assets reached RMB 7.95 trillion, and shareholders’ equity attributable to shareholders reached RMB 664.2 billion (approximately $98.8 billion), up 11.6% year-on-year. Embedded value reached RMB 1.61 trillion, maintaining the top position in the industry, with total market capitalization ranking first among global life insurers.

China Life’s solvency remains at adequate levels, with a comprehensive solvency adequacy ratio of 197.78% and a core solvency adequacy ratio of 156.80%. The company holds 328 million long-term in-force policies, has maintained a Class A rating in the comprehensive risk rating of insurance companies for 32 consecutive quarters, and continues to hold the highest international credit rating among Chinese-funded insurance companies.

The performance of the two insurance groups collectively paints a picture of strong recovery in the Hong Kong and mainland China insurance markets during the first half of the year. Prudential, buoyed by structural support from cross-border insurance demand, continues to consolidate its leading position in the Hong Kong market. China Life, benefiting from both a recovering capital market and business structure optimization, achieved simultaneous leaps in profitability and value.

Market analysts note that mainland visitors’ preference for Hong Kong insurance is unlikely to reverse in the short term. Wealth succession and diversified asset allocation needs are inherently rigid, and Hong Kong insurance products’ advantages in coverage scope and currency options are expected to keep cross-border insurance business as a key growth engine for the Hong Kong insurance market. On the other hand, China Life’s investment income performance is highly correlated with capital market trends, and whether high growth can be sustained in the second half will depend on developments in equity markets and the interest rate environment.

Both companies maintain a positive outlook for the second half. Prudential explicitly expressed confidence that mainland visitor demand and related growth will continue into the second half, while China Life emphasized its commitment to a value- and efficiency-oriented approach, continuing to deepen business structure transformation and enhance the sustainability and quality of its development.