12th August 2014
Insurer Prudential has published a better than expected set of results today with operating profits up in all major geographies and divisions.
The FTSE 100 constituent, on the back of robust performance especially in Asia and the US, announced a jump in operating profits to £1.5bn over the six months to the end of June, marking a 17% rise on the same period last year. It also reported new business profit of more than £1bn – a 24% hike.
Its UK operations delivered a 10% rise in operating profits, despite significant regulatory changes affecting the annuity market while its US arm Jackson, witnessed a 28% rise to £686m. Its Asian division enjoyed a 19% rise in profits to £525m.
By 11.34am shares in the group were trading 24.5p, or 2%, higher at 1,363.5p as traders cheered the news.
Commenting on the results, Tidjane Thiam, group chief executive said: “We continue to be proactive in focusing on growing high quality insurance margin and fee income. In Asia, we continue to see robust activity levels in our distribution channels. We are continuing to invest in improving customer access to fulfill growing demand for our products and services.
“We remain confident in our ability to produce profitable growth over the long term and continue to create value for our customers and shareholders.”
Looking at the latest set of results, Sheridan Admans, investment research manager at The Share Centre said: “Prudential continued to see robust demand for its products and services in Asia and annuities in the US. The company remains confident on its geographical positioning and strategy to deliver growth.
“We continue to recommend Prudential as a ‘buy’ for investors looking for a positive investment idea that spans the US, Asia and the UK. The Asian growth story continues to remain highly attractive along with strong UK and US operations.”