Prudential’s Q1 new business profit down 2% at S$743m

PRUDENTIAL reported S$726 million new business profit for the first quarter ended Mar 31, 2024, 2 per cent down from S$743 million in the same period last year.

The annual premium equivalent (APE) sales stood at S$1.63 billion, up 4 per cent from S$1.56 billion a year earlier, based on the insurer’s Q1 business update on Tuesday (Apr 30).

On a constant exchange rate basis, the quarter’s new business profit was broadly unchanged while APE sales were up 7 per cent.

The insurer highlighted a continued business momentum despite strong last-year comparators in Hong Kong and Citic Prudential Life (CPL), as well as headwinds in Vietnam.

Hong Kong’s APE sales grew 1 per cent, driven by both domestic and Chinese mainland visitor segments.

This is even when compared with the significant rebound in Q1 last year.

Q1 APE sales for Prudential’s Chinese mainland joint venture CPL fell 17 per cent year on year.

However, it exceeded the total for the last six months of 2023, for both the agency and bancassurance channels.

“We continue to optimise our product portfolio in this market towards long-term savings, annuities and health and protection,” said the insurer.

It added that such efforts increased CPL’S new business margin by four percentage points on the year, computed with interest rates and other economics as at Mar 31, 2023, to show underlying growth.

Prudential also registered a 28 per cent growth in APE sales in growth markets and other segment, driven by Thailand, Taiwan, India and Africa, more than offsetting continued weakness in Vietnam.

Moreover, its Singapore market sales have continued to rebound since the second half of last year, with a third sequential quarter of growth in APE sales.

Such sales in Singapore increased by 2 per cent compared with the first quarter of 2023.

Chief executive officer Anil Wadhwani highlighted that Q1 results provided a “sound base” for continued FY2024 new business growth.

“Our total APE sales have grown sequentially each quarter since Q3 2023, reflecting resilient consumer demand across Asia and demonstrating the strength of our multimarket and multi-channel distribution model,” Wadhwani noted.

He added that Prudential aims to provide an update on its capital management plans by FY2024 results.

The insurer highlighted a continued business momentum despite strong last-year comparators in Hong Kong and Citic Prudential Life, as well as headwinds in Vietnam.