Prudential taps into Asia boom
Prudential has revealed more eastern promise as the insurer's Asian arm continued to outperform the UK market in the first half of the year.The group, which was founded in London in 1848, said Asian profits rose 21% to £443 million, driven by the appetite of the middle classes for life insurance and other savings and protection products.
In the UK, profits were flat at £552 million as the tough economic climate weighs on the business - although some analysts said zero growth was stronger than it sounded.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said there was "little not to like" in the figures and added that the UK figures were "something of an achievement given the circumstances".
Prudential, which has warned in the past that it may move its headquarters from London to Asia due to EU plans to force it to horde more capital, reported a 13% rise in overall group operating profits to £1.2 billion.
The group has enjoyed strong growth in seven south-east Asian markets, which it describes as its "sweet spot" and includes Indonesia, the Philippines, Vietnam and Thailand, covering a population of 500 million.
Prudential is increasingly moving away from its traditional business model of being reliant on the UK life assurance business for its cash generation. It now focuses on areas in the UK in which it has a "competitive advantage" such as individual annuities and with-profits products.
New business sales in the UK were largely flat at £412 million, with a drop in corporate pension sales offsetting a rise in individual annuities. The interim dividend was lifted 5.7% to 8.4p per share.
Chief executive Tidjane Thiam said: "Our balance sheet remains defensively positioned and we continue to capitalise on the long-term growth opportunities available to us.
"Those opportunities are most evident in south-east Asia, where the depth and breadth of Prudential's franchise is a source of strength."
The group has enjoyed strong growth in seven south-east Asian markets, which it describes as its "sweet spot" and includes Indonesia, the Philippines, Vietnam and Thailand, covering a population of 500 million.
Prudential is increasingly moving away from its traditional business model of being reliant on the UK life assurance business for its cash generation. It now focuses on areas in the UK in which it has a "competitive advantage" such as individual annuities and with-profits products.
New business sales in the UK were largely flat at £412 million, with a drop in corporate pension sales offsetting a rise in individual annuities. The interim dividend was lifted 5.7% to 8.4p per share.
Chief executive Tidjane Thiam said: "Our balance sheet remains defensively positioned and we continue to capitalise on the long-term growth opportunities available to us.
"Those opportunities are most evident in south-east Asia, where the depth and breadth of Prudential's franchise is a source of strength."
© 2013 Press Association