Insurance giant Prudential sees sales and profit surge

Corporate sales rose sharply in the first quarter as the insurance giant benefited from the lifting of Covid restrictions in China.

The Asia-focused insurer’s annual premium-equivalent sales rose 29 percent to $1.55 billion (£1.2 billion), or 35 percent at constant exchange rates, while earnings from new businesses rose 30 percent to $1.2 billion. 743 million (£595.7 million).

On the London list Prudential shares rose 3.5 percent to £11.92 in morning trading on Friday.

The stock is now up about 1 percent year-to-date, after falling 12 percent in March after it fell into market turmoil following the collapse of Silicon Valley Bank, despite Prudential insisting it has a minimal exposure to the bank.

Chief executive, Anil Wadhwani, said: ‘The strength of our distribution capabilities and the company’s diversification across countries, products and channels contributed to our performance in the first quarter.

“Ten of the 13 life insurance markets in Asia and Africa posted double-digit growth in new operating profit.”

Looking ahead, Prudential said business momentum, especially in Hong Kong, has continued in the second quarter.

It added that it was confident it would “meet the growing health, protection and savings needs of our customers in Asia and Africa.”

The insurer is listed in London but is now focusing exclusively on Asia and Africa after selling its US and UK branches. The entire senior management team has moved from London to Hong Kong.

Last month, Prudential reported an 8 percent profit increase for 2022 to $3.4 billion (£2.7 billion).

But it also revealed it has about £800,000 of exposure to SVB against a total debt portfolio of £19bn.

“Our exposure to SVB is de minimis,” said James Turner, the Pru’s chief financial officer at the time.

‘We are very conservative in positioning our balance sheet.’