Business

Prudential profits jump 20% in 2019

Prudential has reported a 20% increase in adjusted operating profit to $5.3m (£4bn) for the 2019 financial year.

In Asia, adjusted operating profit was up 14%, and embedded value increased by 23% to $39.2bn (£30bn).

Additionally, US APE sales increased by 8%, driven by fixed income and fixed index annuities, in line with its “diversification strategy”.

However, new business profit declined by 28%, reflecting lower interest rates and changes in product mix. US adjusted operating profit increased by 20% to $3m (£2.3bn), reflecting the impact of “lower market-related amortisation of deferred acquisition costs”.

LCSM shareholder surplus was also estimated at $9.5bn (£7.3bn), equivalent to a cover ratio of 309%.

Mike Wells, Prudential plc’s group chief executive, said: “We have delivered another positive performance during 2019, despite significant macroeconomic and geopolitical volatility. Our clear strategy and strong execution have enabled us both to deliver profitable growth and to position ourselves for further growth into the future.

“In Asia, we are focused on growth opportunities. We are building the long-term value of our fast-growing franchise by deepening our strong relationships with existing customers and by acquiring new customer relationships.”

He added: “We continue to monitor closely the development of the coronavirus outbreak and are focused on the health and well-being of our customers and staff. The outbreak has slowed economic activity and dampened our sales momentum in Hong Kong and China.

“Our in-force business is proving robust. The broad geographic spread of our business across the region and the strength of our recurring premium business model lends considerable resilience to our earnings.”

Show More
Back to top button