Prudential Q3 New Business Profit Down On Weak US; Confident Of Rest Of Year

(RTTNews) - UK insurer Prudential Plc. (PRU.L, PUK) reported Tuesday a decline in third-quarter new business profit as weak US performance offset improved results in Asia and UK regions. Sales increased from last year, while net inflows declined. Looking ahead, Chief Executive Tidjane Thiam stated that the company remains confident about its prospects for the rest of the year.

In the third quarter, new business profit declined 2 percent to 499 million pounds from 509 million pounds last year, but it grew 5 percent at constant exchange rates.

New business profit in Asia grew 6 percent on a reported basis and 16 percent at constant rates to 281 million pounds. UK also recorded a 2 percent increase in new business profit. Meanwhile, in the US, Jackson's profit plunged 15 percent on a reported basis and 8 percent at constant rates.

Sales - Annual Premium Equivalent or APE edged up 2 percent to 1.127 billion pounds from 1.103 billion pounds last year with strong performance in both Asia and UK, despite weak US performance. At constant rates, total sales grew 9 percent.

Gross inflows dropped 5 percent from last year to 12.8 billion pounds, and net inflows plunged 43 percent to 2.9 billion pounds.

In the 9-month period, new business profit advanced 6 percent on a reported basis and 17 percent at constant rates to 1.514 billion pounds from 1.422 billion pounds. Sales - APE rose 5 percent to 3.427 billion pounds.

In each of its three life insurance businesses in Asia, the US and the UK, the company recorded double-digit growth in both new business profit and new business APE sales at constant rates in the nine months.

Gross inflows dropped 6 percent from last year to 39 billion pounds. Net inflows were 9.6 billion pounds in the firm's asset management businesses, down 12 percent from last year. At constant rates, net inflows dropped 11 percent.

According to the firm, net inflows were hurt by a 10 percent drop in retail and 81 percent decline in institutional inflows, partly offset by an 82 percent growth in Eastspring Investments.

Total external funds under management increased 10 percent to 157.5 billion pounds

In London, Prudential shares were gaining 3 pence or 0.20 percent, and trading at 1,478 pence.