Despite UK new business profits slipping by 6 percent, insurer Prudential’s consolidated new business profits jumped by 17% to £498 million in the first three months of 2011. The company had posted a profit of £427 million over the same period in 2010.
New business profits in the UK dropped to £65 million from £69 million, recorded in the first three months of 2010. On APE basis UK sales were up at £199 million, a growth of 3 percent over same period last year.
Sales of external annuities dropped by 42 percent to £15 million, which the company attributed to a partnership termination, while individual annuity sales were down by 29 percent to £42 million over Q1, 2010.
Individual pensions sales, including income drawdown were higher by 13 percent at £24 million while corporate pensions sales were higher by 30 percent and recorded at £78 million.
Following the acquisition of Standard Life Healthcare, Pru UK’s business share has dropped although sales of PruHealth remained flat at £2 million.
M&G – the company’s asset management business witnessed a drop of 11 percent in fund flows to £1.7 billion during the period. Funds under management rose by 9 percent to 200 billion from £182 billion.
Although the company claims underlying sales grew by 15 percent, sales of PruProtect were down by 71 percent. The insurer attributed the drop to change in reporting following share reduction in the business.
“After a very strong 2010, our performance at the beginning of 2011 confirms that our strategy is delivering value to our shareholders”, said group chief executive Tidjane Thiam.
“We will continue to implement our strategy with discipline, allocating capital to the most attractive markets and products, while managing risk and capital prudently, but proactively. Cash remittances and free surplus generation remain strong and we remain well positioned to achieve the objectives we have set ourselves for 2013”, he added.