Britain’s biggest insurer logged operating profit for the six months ended June 30 at £1.9 billion, as compared with £1.6 billion for H1 of 2014.
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Profit from new business – calculated using on a European embedded value basis, a common industry measure – rose 12 per cent to £1.19 billion. Prudential’s US business, Jackson Life, turned in 11 percent more operating profit.
Prudential’s UK life operating profit was 19 per cent higher than the first half of 2014 at £436m, with drawdown sales more than trebling in this period. “All of the key financial metrics were ahead of both our and the market’s expectations, highlighting the strength of Pru’s positioning across the main financial markets in the US, UK and Asia”, said Eamonn Flanagan, an analyst at Shore Capital.
Asia delivered a strong performance with operating profit up 17 per cent at £632 million, driven by 15 per cent growth in its life businesses and a 35 per cent rise in Eastspring Investments, its Asia asset management businesses.
“We have seen strong performances from each of our principal business units”, said Chief Executive Officer Mike Wells in a statement.
Chief executive Mike Wells attributed the group’s Asian success to “meeting the protection and savings needs of the growing middle classes”.
He added: “I have visited all of our major business operations, which has confirmed to me that our strategy is the right one”.
Profits at its Asian division rose 17 per cent. Concerns about Prudential’s exposure to China have spooked investors, with the share price down sharply since the end of May.
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The Board has approved a 2015 interim dividend of 12.31 pence per share, which equates to an increase of 10 per cent over the 2014 interim dividend.
