Prudential Plc reported increased new business profit driven by strong performance in Hong Kong and China markets, as the insurer announced a $1.2 billion stock buyback program. The UK-based company's growth in Asia comes as it capitalizes on rising demand for insurance products in the region's expanding middle class.

The buyback announcement signals management's confidence in the company's financial position and future prospects. Share repurchases typically indicate that executives believe their stock is undervalued and represent a way to return capital to shareholders while potentially boosting earnings per share.

Prudential's focus on Asian markets has been a key strategic priority in recent years, with the region now accounting for a significant portion of its business. The company's ability to generate profit growth in these markets, even as some Western economies face economic headwinds, demonstrates the value of its geographic diversification strategy.