Asia drives Prudential’s new-business profit

November 17 2017 by InsuranceAsia News Staff

Higher sales volumes and a boost from higher interest rates have driven Prudential’s new-business profit in Asia for the first nine months of this year.

The British insurer said new-business profit in Asia, which has been Prudential’s main focus region in recent years, reached £1.61 billion (US$2.12 billion), with seven countries, including China, Hong Kong and Singapore, posting double-digit growth.

Prudential chief executive Mike Wells said the insurer is meeting the health, protection and savings needs of a rapidly growing middle class in Asia.

Overall, Prudential’s new-business profit rose 17% to £2.47 billion in the January-September period and a major chunk of the profit came from Asia.

Gross annual premium equivalent (APE) sales in Asia rose 14% to £2.79 billion in the nine months, helped by higher contributions from agency and bancassurance channels, and a 16% jump in health and protection sales.

The company has also started the sale of its Vietnam consumer finance unit, which could fetch up to US$150 million, as it continues to sharpen focus on its core insurance business in the South-East Asian nation.