Prudential Plc Posts 9-Month New Business Profit Of GBP 1.97 Bln

(RTTNews) - Prudential plc (PRU.L), the UK-based financial services group, Wednesday said that its new business profit totaled 1.970 billion pounds for the first nine months, with APE sales of 4.55 billion pounds.

The new business trends experienced in the first half of the year have continued in the third quarter of 2016, driven by Asia and selective participation in the US and the UK.

In its business trading update, the company said it continues to benefit from the favourable structural opportunities in its key markets and its well established leadership positions.

In Asia, nine-month life APE sales increased 25 percent, driven by continued focus on regular premium sales, which were up 18 percent. New business profit was 34 percent higher, reflecting volume growth and specific management actions to drive value.

In asset management, Eastspring's total funds under management were 115.3 billion pounds at 30 September 2016, compared to 89.1 billion pounds at the start of the year.

Jackson continues to experience overall positive separate account net flows, totaling $4.6 billion for the first nine months despite variable annuity new premium levels 28 percent lower, the company said.

The UK life business' new business profit from retail sales was 41 percent higher, with APE sales increasing by 65 percent. As a result, PruFund assets under management rose 38 percent to 22.8 billion pounds.

The company also announced that its Board will maintain its focus on delivering a growing ordinary dividend. In line with this policy, Prudential aims to grow the ordinary dividend by 5 per cent per annum.

Mike Wells, Group Chief Executive, stated that the firm will provide detailed updates on the operational progress of each businesses and the sustainable profitable growth prospects of the Group in today's Investor Conference.

The company on November 20 announced its agreement to sell Korean life business to Mirae Asset Life Insurance Co., Ltd. for about 119 million pounds. The proposed sale is consistent with Prudential's strategy of allocating its capital to markets where it is well positioned to generate attractive long-term returns for its shareholders.