Prudential New Business Profit Up 12% On Asia Growth

(RTTNews) - UK insurer Prudential Plc (PUK, PRU.L) Thursday reported 12 percent growth in Group new business profit for the nine-month period, driven by Asia business performance. The company also said it is on track to achieve its remaining Asia growth objective of doubling 2009 new business profit to 1.43 billion pounds by the year end.

According to the firm. emerging economies of Asia will continue to grow significantly faster than developed economies. It also remains confident about its prospects for the rest of the year and its positioning for the long term.

Total Group new business profit for the nine-month period was 1.95 billion pounds, up 12 percent from the year-ago period. Total Group sales - annual premium equivalent or APE , increased 6 percent to 3.27 billion pounds.

In an interim management statement, the company noted that year-to-date, Asia new business profit climbed 20 percent to 990 million pounds. The new business profit growth reflects both higher volumes, with year-to-date APE increase of 15 percent to 1.52 billion pounds.

The growth was also driven by benefit of favourable changes in country mix, channel mix and economic assumptions following the rise in interest rates, mainly in Hong Kong, the firm said.

In the U.S., Jackson's new business profit in the nine-month period increased 11 per cent to 756 million pounds.

In the UK, total new business profit of 204 million pounds was 10 percent lower than last year, due to lower sales of bulk annuities in the period. Retail new business profit was 2 percent above the prior year, reflecting combined positive effects of business mix, pricing actions and higher long-term interest rates, Prudential said.

Looking ahead, Tidjane Thiam, chief executive of the company stated, "We remain on track to achieve our 2013 'Growth and Cash' objectives."

During the third quarter, new business APE climbed 20 percent to 513 million pounds.

M&G has reported steady inflows for the three months to the end of September 2013, with total net inflows reaching 5.1 billion pounds, taking the cumulative total since the beginning of the year to 8.9 billion pounds.

In London, Prudential shares are currently trading at 1,267 pence, up 24 pence or 1.93 percent, on a volume of 2.21 million shares.