14th Nov 2013 12:18
LONDON (Alliance News) - Prudential PLC Thursday said new business profit over the third quarter was buoyed by strong growth levels in both Asia and the US.
The life insurer said new business profit totalled GBP682 million over the third quarter ended September 30, compared with GBP597 million for the corresponding quarter the year prior.
New business profits were buoyed by a strong performance in Asia, where Prudential has been focused on doubling new business profit from what was achieved in 2009. It amounted to GBP331 million in the third quarter, compared with GBP281 million for the corresponding period last year.
New business profits in the US grew by 15% to GBP277 million.
Compared with the first nine months of 2012, Prudential's new business profits rose by 12% to GBP2.0 billion.
Chief Executive Tidjane Thiam said the insurer was "on track" to achieve its full-year objectives, while he said growth in Asia was driven by a fast-growing and increasingly wealthy middle class, a young population, and rising urbanisation, amongst other factors.
The UK division, which attracted broadly flat, if slightly lower, new business profits at GBP74 million in the third quarter, is, along with the US business, "focused on delivering earnings and cash" according to Thiam.
In a conference call with journalists, Thiam said that the US arm, Jackson National Life Insurance Company, which provides retirement products aimed at the 78 million ?baby boomers? in the US, is to have a big future in the group, as he praised it for its innovative products which he said are being imitated by competitors.
Meanwhile, Prudential's fund management arm saw its funds under management rise to GBP301.9 billion, compared with GBP272.9 billion at this stage last year. Gross inflows rose to GBP13.5 billion in the third quarter, up 2%, though net inflows were down to GBP5.1 billion from GBP7.0 billion.
Prudential shares were Thursday quoted at 1,268.72 pence, up 2.1%.
By Samuel Agini; [email protected]; @samuelagini
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