9th Mar 2016 08:42
LONDON (Alliance News) - Prudential PLC on Wednesday said net profit rose in 2015, driven by double-digit growth at its operations in Asia, the US and the UK, and declared a special dividend payment to shareholders.
Net profit rose to GBP2.58 billion in 2015, the life insurer said in a statement, from GBP2.22 billion in 2014. The life insurer increased its full-year ordinary dividend by 5.0% to 38.78 pence per share, and declared a special dividend of 10p.
"I am pleased to be able to announce such a strong performance today despite the current macroeconomic and political uncertainty, which have created a more volatile and unpredictable short-term outlook for global growth," Chief Executive Mike Wells said.
"We have the flexibility and resilience to adapt to these developments due to our focus on those markets where the need for our products is greatest, our growing level of recurring income from our sizeable in-force portfolio and our robust balance sheet position," Wells added.
Operating profit based on longer-term investment returns topped GBP4 billion. It grew to GBP4.01 billion in 2015, from GBP3.19 billion in 2014.
Asia life and asset management operating profit rose to GBP1.32 billion in 2015 from GBP1.14 billion in 2014, due to higher recurring income from the company's life in-force book and higher assets under management in investment manager Eastspring.
US life operating profit grew by 18% at actual exchange rates to GBP1.69 billion, driven by growth in fee income earned on separate account assets that have continued to benefit from robust net inflows, Prudential said.
UK life operating profit increased 60% to GBP1.17 billion, and included GBP339 million in the second half of 2015 from management actions taken to position the balance sheet "more efficiently" under new Solvency II insurance rules in the EU.
The group said that UK investment house M&G Investments' operating profit of GBP442 million in 2015, was more or less in line with the GBP446 million generated in 2014. Funds under management, including internal funds, were 7.0% lower at GBP246.1 billion, due to outflows from retail investors.
Shares in Prudential were up 2.3% at 1,357.00 pence on Wednesday morning, topping the FTSE 100 gainers board.
By Samuel Agini; [email protected]; @samuelagini
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