Prudential profit zooms 25 percent, dividends up 30 percent

Prudential Profits Soared by 25 percent in H1, 2011

Prudential Profits Soared by 25 percent in H1, 2011

The operating profits of Prudential jumped by 25 per cent to £1,058 million for the first six months of 2011, while dividends rose by 30 per cent.

Sales in the UK grew by seven per cent while global new business profit soared by 20 per cent, the company announced today as it explained the firm’s sterling performance.

Life insurance sales grew by 10 per cent in H1, 2011 to £1.8 billion from £1.6 billion on an Annual Premium Equivalent (APE) basis.

New business profit also registered a 10 per cent growth over the first six months of the year to £1.06 billion from £892 million last year.

Dividend per share will be about £7.95p compared to £6.61p in H1, 2010.

Commenting on the half-yearly results, Tidjane Thiam, group chief executive said the firm has delivered “another good performance.”

“The group continues to generate growing amounts of underlying free surplus, up 15 per cent versus the same period last year. We have continued to concentrate on the fast growing and highly profitable markets of South-East Asia, and the positive momentum of 2010 has been maintained during the first half of this year, with new business profit up 17 per cent in Asia and 22 per cent in Asia ex-India, he said.

“In the US, Jackson is now one of the leading providers of variable annuities in the world’s largest retirement market, and we continue to balance sales growth with increasing cash generation and profitability,” he added.

Talking about domestic business, he said the company’s results are in line with its strategy of preserving cash and capital protection, while expanding new business.

“In asset management, both M&G and our business in Asia are seeing profit grow in addition to rising funds under management. Our operating principle of putting value over volume, our focus on execution and the investment options the group’s structure and geographic footprint provides, have allowed us to continue to deliver value to shareholders,” he said.

“We expect to see continued, profitable and cash generative growth in the second half of 2011. We remain on course to deliver the 2013 profit growth and cash generation objectives we outlined at our investor day last year,” added Mt. Thiam.

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