Shares in Prudential (LON:PRU) have jumped more than one percent in London in today’s session, as the company revealed a rise in its nine-months profits, having benefitted from strong performance in Asia. The news comes after recent reports suggested that the blue-chip company was planning to break up its £10-billion British pensions annuities book into four parts.
As of 14:26 GMT, Prudential’s share price had jumped 1.40 percent to 1,886.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.17 percent higher at 7,385.00 points. The group’s shares have added more than 23 percent to their value over the past year, and are up by some 15 percent in the year-to-date.
The Pru sees profits rise
The Pru said in a statement today that its life insurance new business profit had increased by 17 percent to £2.5 billion in the first nine months of the year, reflecting higher sales and more favourable economics. The company benefitted from strong performance in Asia where the group’s new business profit came in 15 percent higher at £1.6 billion, with at least double-digit growth in seven countries, including China, Hong Kong and Singapore.
“In Asia, we are meeting the health, protection and savings needs of a rapidly growing middle class,” the group’s chief executive Mike Wells commented in the statement, which was published for a conference with investors and analysts.
ShoreCap upbeat on group
Shore Capital’s insurance analyst Eamonn Flanagan was upbeat on the news, describing the new business figures as ‘terrific’.
“The strength of the group's business model across the globe is unparalleled, to us, with a powerful balance sheet to match,” the analyst pointed out in a note to clients, as quoted by Proactive Investors. “The operations in Asia and the US are ‘best-in-class’ in our view in their respective territories, with M&G Prudential in the UK clearly determined to deliver likewise on these shores.”