Shares in Prudential (LON:PRU) have climbed higher in London in today’s session, as the company updated investors on its recent trading, posting a rise in new business profit from its life insurance operations. The group further said that the planned demerger of its M&G business remained on track.
As of 10:32 GMT, Prudential’s share price had added 0.34 percent to 1,621.50p, outperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.28 percent in the red at 7,034.09 points. The Pru’s shares have given up about 12.8 percent of their value over the past year, as compared with about a 5.5-percent dip in the Footsie.
The Pru updates on trading
Prudential announced in a statement today that its life insurance new business profit had increased 17 percent over the first nine months of the year. The group saw strong growth in Asia, where new business profit increased by 15 percent to £1.76 billion, with a 19-percent rise in health and protection new business profit.
“Since our last Asia-based investor conference in 2014, our Asia business has more than doubled new business profit, demonstrating our ability to capture high-quality growth at pace,” the group’s chief executive Mike Wells commented in the statement, adding that “the profitable growth prospects” of the group’s Asia businesses remained substantial.
The company further noted that the planned demerger of M&G Prudential was on track. The update comes after last month, the Pru appointed Mike Evans as Chair of M&G Prudential.
Analysts weigh in on update
“A key positive in Prudential’s trading update is a move up in Asian volume growth,” Reuters quoted KBW analyst Greig Paterson as saying in a note to clients, flagging an ‘outperform’ rating and 2,100p price target.