Prudential plc has announced that it will commence a $1.2bn buyback programme in its ordinary shares, which is set to complete no later than 18 December.

The programme has been launched to reduce the share capital of the company in order to return capital to shareholders. The directors consider the programme to be in the best interests of the company and its shareholders generally.

Prudential said the share buyback forms part of the insurance and asset management firm’s capital management programme, which is expected to return over $5bn to shareholders between 2024 and 2027. This is before the intended return to shareholders of the net proceeds from the initial public offering of IPAMC IPO.

The current scheme comprises $500m of recurring capital returns and proceeds from the IPAMC IPO. The balance of the net proceeds from the IPAMC IPO will be returned to shareholders during 2027.

The latest programme comes after Prudential completed the final tranche of a $2bn buyback programme in 2025.

Chief executive officer at Prudential, Anil Wadhwani, stated: "I am pleased with the progress we are making in executing our strategy. The significant growth opportunities ahead of us have not changed and we remain firmly focused on creating long-term shareholder value through high quality, sustainable growth, and consistent delivery of shareholder returns."

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