Pru posts profit gain on Asian strength

Prudential Plc’s new-business profit for the first nine months of the year rose 17%, with a major chunk of it coming from Asia, and the British life insurer also saw growth opportunities in the United States, and the UK and Europe.

New-business profit for the group was £2.47 billion ($3.25 billion), driven by higher sales and favourable economics, Prudential said yesterday ahead of an investor day. It was in line with forecasts by analysts at KBW.

In Asia, Prudential’s focus region in recent years, new-business profit rose 15% to £1.61 billion in the period, driven in part by higher sales volumes and a boost from higher interest rates.

“In Asia, we are meeting the health, protection and savings needs of a rapidly growing middle class,” chief executive Mike Wells said.

Prudential said seven countries including China, Hong Kong and Singapore clocked double-digit growth.

Positive markets helped Eastspring, its Asian asset management business, deliver year-to-date external net inflows of £2.8 billion.

In the UK, new business profit rose 31% to £234 million in its recently merged insurance and fund-management unit.

M&G Prudential delivered external asset management net inflows of £9.9 billion in the first nine months, with total assets under management rising to £336.5 billion.

In the United States, where Prudential operates through its unit Jackson, new-business profit rose 28% on an actual exchange rate basis to £619 million, driven by higher interest rates.

“Prudential sees opportunities from retirement needs of the baby boomers in the United States and the life assurance and savings markets in the UK and Europe,’’ Wells said.

Gross annual premium equivalent (APE) sales, which include regular premium sales plus one-tenth of single premium insurance sales, rose to £5.17 billion, from £4.47 billion a year earlier.

APE sales in Asia rose 14% to £2.79 billion in the nine months, helped by higher contributions from agency and bancassurance channels, and a 16% jump in health and protection sales.

Prudential has kicked off the sale of its Vietnam consumer finance unit, which could fetch up to $150 million, as it continues to sharpen focus on its core insurance business in the Southeast Asian nation.

The move comes as some global insurers, including AXA SA, are similarly looking to sell smaller and noncore units in Asia to better focus on their main insurance businesses in a region that is attractive due to low insurance penetration, but is also hyper competitive.