11th Aug 2021 11:38
(Alliance News) - Prudential PLC interim profit rose by more than 60%, as the life and health insurer said on Wednesday it continues to consider a USD2.50 billion to USD3.00 billion equity raise amid its pivot to Asia.
On an IFRS basis, pretax profit for the six months ended June 30 was USD1.50 billion, up 61% from USD932 million in the same period last year.
IFRS refers to international financial reporting standards. Prudential separately reports on a European embedded value basis.
Total revenue for the period was USD11.69 billion, a 25% drop from USD15.50 billion last year. The revenue decline was due to a drop in investment return to USD738 million from USD4.20 billion.
Prudential said progress is being made on its proposed demerger of Jackson, its US business, with a completion date planned for September.
"The proposed demerger will complete our strategic transformation to focus exclusively on our higher-growth and higher risk-adjusted return businesses in Asia and Africa," said Chief Executive Mike Wells.
Following the demerger, Prudential is mulling a USD2.50 billion to USD3.00 billion equity raise to "enhance financial flexibility and de-lever the balance sheet". The equity raise would comprise a global offering to institutional investors and a public offering to retail investors in Hong Kong.
Prudential anticipates the global vaccine rollouts will help economies and trading return to normal patterns. "We are confident that the demand for our products will continue to grow in line with the structural growth in our chosen markets," said Wells, who had run Jackson before being promoted to group CEO.
The insurer used alternative sales and distribution processes in some markets to boost trading in the half year, including virtual face-to-face sales, online recruitment, online training and agent licensing, it said.
Prudential declared an interim dividend of 5.37 US cents, in line with last year.
Shares in Prudential were up 2.5% at 1,487.00 pence in London on Wednesday.
By Josie O'Brien; [email protected]
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