Prudential shares bounce as chief lays out new Asia push
Shares in insurance giant Prudential were given a boost today as the firm announced a fresh growth push into Asia and Africa along with a hefty warning missive to investors over the state of the global economy.
At its half year results, the Asia-focused insurance firm announced a new strategic plan under new chief Anil Wadhwani including ramping up its growth outside of Europe and prioritising dividends for investors.
The firm said in a statement the new plan will build a “sustainable growth platform, through targeted investment in structural growth markets across Asia and Africa”.
“We have today announced that we will do things differently in the way we run Prudential,” Wadwhani added.
“With a clear strategy, operational and capital allocation priorities, we are focused on delivering sustainable value for all our stakeholders: employees, customers, shareholders and our communities.”
Under the new plans, Prudential said it 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.
The update came as the firm reported adjusted operating profits were up 6 per cent to $1.462bn in the period in the six months to the end of June.
New business profits meanwhile, a key gauge of predicted profits on products, ticked up 39 per cent in the period to $1.49bn, above analyst expectations.
The update was received warmly in the City this morning with shares bouncing over three per cent in morning trading.
The figures mark the first major update under Wadwhani who took over the the top job in February and is looking to deliver the fruits of the group’s pivot away from Europe towards Asia.
Shares in the firm have been on the decline this year as jitters spread against the backdrop of a faltering Chinese economy, with around 50 per cent of the group’s projected business hailing from the region.
Prudential also laid out a hefty missive to investors today detailing the risks facing the region.