Prudential H1 Profit Rises On Asia, UK Strength

(RTTNews) - UK-based insurer Prudential Plc. (PRU.L, PUK) reported Tuesday higher profit in its first half, as sales were benefited by improved performance in Asia and the UK, despite weak sales in the U.S.

Looking ahead, the company noted that it remains confident of being able to deliver strong, sustainable, profitable growth while delivering quality products and services to a large and rapidly growing customer base, despite ongoing macro-economic uncertainties.

The company added that it is continuing to make progress towards 2017 objectives announced in December 2013. The company projects Asia life and asset management IFRS operating profit to be greater than 1.86 billion pounds for 2017.

For the first half, pre-tax profit, on IFRS basis, attributable to shareholders of 1.882 billion pounds, 32 percent higher than 1.42 billion pounds last year.

Group IFRS operating profit based on longer-term investment returns increased 24 percent to 1.881 billion pounds, benefited by growth from all four principal business operations - Asia, US, UK and M&G.

On European Embedded Value or EEV basis, post-tax attributable profit grew 9 percent to 2.12 billion pounds, while operating profit based on longer-term investment returns climbed 17 percent to 2.28 billion pounds.

Basic earnings per share on IFRS basis rose 26 percent to 57pence, and on EEV basis grew 17 percent to 89.3 pence.

EEV new business profit was 1.19 billion pounds, 18 percent higher than last year with higher overall volumes in Asia and the UK, together with the completion of two attractively priced bulk deals.

Sales - Annual Premium Equivalent or APE rose 20 percent to 2.73 billion pounds from last year's 2.3 billion pounds with growth from Asia and the UK. On a constant exchange rate basis, APE sales grew 13 percent.

In Asia, APE sales were 31 percent higher, with sales volumes reflecting broad-based growth across the region. In the US, APE sales fell 10 percent as the firm continued to manage proactively its sales of variable annuities with guarantees. In the UK, APE sales grew by 22 percent reflecting strong sales volumes.

Further, the Board has approved a 2015 interim dividend of 12.31 pence per share, an increase of 10 percent over the 2014 interim dividend.

In London, Prudential shares were trading at 1,505.50 pence, down 0.07 percent.