All is Wells for Pru’s new man

PRUDENTIAL’S chief executive Mike Wells should have good news for his shareholders when he introduces himself at his maiden financial results tomorrow, writes helen Power.

Analysts are forecasting half-year profits of £1.73bn, an increase of 14pc on last year, as well as strong growth in the Pru’s emerging markets ‘sweet spot’.

Wells, who took over from the insurer’s charismatic former boss Tidjane Thiam earlier this year, will meet many of his shareholders for the first time when he sets out the interim results at the offices of its broker, Nomura.

Thiam is a hard act to follow – more than £1.3bn was wiped off the value of Pru when the insurance giant announced he was stepping down – but strong results under Wells will calm investors’ nerves.

Shore Capital director eamonn Flanagan believes the early signs are good that Wells, who previously ran Jackson National, the Pru’s US division, is the right man for the job.

he said: ‘ This guy is an actuary trapped in the body of a Baywatch lifeguard.’

Wells, who had been at the Pru for 15 years when he secured the top job, is the first American boss in the insurer’s 170-year history.

Shore Capital is forecasting a 9pc jump in new business growth – a key indicator for insurers – driven by a 20pc rise in the buoyant Asian region. But analysts are concerned about a number of challenges which threaten to hamper growth.

They will scour the results for evidence of how much the Chinese stock market crash has affected sales in hong Kong, its biggest Asian market, while the firm is also awaiting details of a legal change in the US that could hit sales of variable annuities.