Prudential Plc Turns To Net Profit In H1; Pre-tax Profit Down

(RTTNews) - Insurance company Prudential plc reported Wednesday a sharp drop in first-half pre-tax profit. On an after-tax basis, the company recorded a profit, compared to last year's hefty loss, due to the absence of prior year's loss from discontinued operations.

Separately, Prudential announced its 2022 first interim dividend of 5.74 US cents per ordinary share, which will be paid on September 27.

The company also announced the appointment of Arijit Basu and Claudia Suessmuth-Dyckerhoff as non-executive directors.

Basu will join the Board with effect from September 1 and will also join the Audit Committee and Responsibility & Sustainability Working Group. Suessmuth-Dyckerhoff's appointment is subject to regulatory approval and the effective date will be confirmed in due course.

For the first half, Prudential's profit before tax was $300 million, down from last year's $1.26 billion.

Profit attributable to equity holders of the company was $104 million, compared to prior year's loss of $4.01 billion. Earnings per share were 3.8 cents, compared to loss of 154.2 cents a year ago.

In the prior year, excluding loss from discontinued operations of $5.07 billion, earnings from continuing operations were $1.06 billion or 40.9 cents.

Gross premiums earned grew to $12.24 billion from $11.52 billion a year ago. Earned premiums, net of reinsurance was $11.32 billion, compared to $10.62 billion last year.

Total revenue, net of reinsurance, was negative $13 billion, vompared to prior year's positive $11.69 billion.

Investment return was negative $24.57 billion, compared to prior year's positive $738 million.

On European Embedded Value or EEV basis, new business profit dropped 7 percent from last year to $1.10 billion. Annual premium equivalent or APE was up 6 percent to $2.21 billion.

In London, Prudential shares were trading at 986.40 pence, down 0.28 percent.

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