Prudential: Hong Kong drives new business profits up 37 per cent as Asia strategy credited
Insurance giant Prudential’s new business profit rose to ($2,14bn) £1.7bn in third quarter, which was a 37 per cent increase on the same period for 2022 as the firm credits its new strategy.
Prudential said its Hong Kong arm led the surge, but it also increased sales to both Chinese mainland visitors and domestic customers compared with the same period last year.
The firm’s year to date APE (annual premium equivalents) were up by 40 per cent to £3.56bn ($4.41bn).
This is the first time the firm announced a third quarter update as it usually does half-year and full year. However, in its report, it added that going forward, it plans to provide business performance updates for the first three months and nine months of the year.
Chief executive Anil Wadhwani said: “Several of our ASEAN (Association of Southeast Asian Nations) based businesses have seen double-digit growth in new business profit for the first nine months of 2023.”
“We are focused on the execution of our recently announced five-year strategy designed to enhance the group’s operational efficiency and increase the productivity of our agency and bank distribution channels,” he explained.
Earlier this year, Prudential removed its chief financial officer, James Turner, after a code of conduct investigation into a recent recruitment showed he had fallen short of its standards. He was replaced by Ben Bulmer, who was previously the chief financial officer of Prudential Corporation Asia.
Shares in the firm rocked at the start of this year reaching 1,371.5 p per share mid January, however, shares have been slowly falling through the year as its share price today is 894.6 p per share.
Its shares had a boost after the firm announced a fresh growth push into Asia and Africa in its half year results.
Speaking at the time, Wadhwani said: We have today announced that we will do things differently in the way we run Prudential.”
The new plans said Prudential was looking to growing new business profit at 15-20 per cent a year between 2022 and 2027, as well as targeting double-digit growth in the free surplus cash it generates from its insurance and asset management businesses in the same period.