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Prudential profits jump 17 percent on Asia, UK growth

Published 11/08/2015, 10:06
© Reuters. File photo of the sun reflecting in a window above the raised lettering of the former Prudential Assurance building in the City of London
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LONDON (Reuters) - Prudential (L:PRU) posted a forecast-beating 17 percent rise in first-half operating profit on Tuesday, boosted by strong performances across its Asian, U.S. and UK life and asset management businesses.

In its first earnings update since Mike Wells took over as chief executive, Britain's biggest insurer said its operating profits jumped to 1.9 billion pounds, beating an average forecast of 1.74 billion from analysts polled by the company.

Total new business profit on an embedded value basis increased by 12 percent to 1.2 billion pounds, helping underpin a 10 percent rise in the firm's interim dividend to 12.31 pence a share.

Wells, who relocated to London from the company's U.S. unit to take Prudential's top job in June, said the robust results demonstrated "disciplined execution" of the group's global growth strategy.

"We are capturing profitably the opportunities available to us in the growing markets of Asia, while in the U.S. and the UK we are continuing to use our established market position,

distribution strength and products that are valued by customers to deliver growth," Wells said in a statement.

Operating profit in its core growth market of Asia for life insurance and asset management also rose 17 percent to 632 million pounds, while its U.S. unit, Jackson Life, saw an 11 percent increase to 834 million pounds.

© Reuters. File photo of the sun reflecting in a window above the raised lettering of the former Prudential Assurance building in the City of London

UK life business, meanwhile, saw a 19 percent jump in operating profit to 436 million pounds.

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