(Reuters) - Insurance group Prudential plans a $2 billion share buyback programme which will be completed no later than mid-2026, the company said in a statement on Sunday.

The life and health insurer will commence the first $700 million tranche of the buyback, for which it has entered into an arrangement with Goldman Sachs International, it said in a separate statement.

The buyback marks progress towards the London and Hong Kong dual-listed company's 2027 financial objectives and will increase the potential for further cash returns to shareholders, the company said.

In a statement Chief Executive Anil Wadhwani said the Pru's board continues to expect its annual dividend for 2024 to increase by between 7% and 9% compared with a year before, adding: "We have confidence in our FY2024 new business growth and in achieving our 2027 financial and strategic objectives."

In March, the Pru reported an 8% rise in annual operating profit, as policy sales across its key markets in Asia and Africa propelled revenue growth.