Prudential annual profit surges
Asian life insurance business contributed the most.
Financial services provider Prudential has reported a profit of £1.49bn for the full year ended 31 December 2011, compared to £1.44bn last year.
On a statutory IFRS basis, the company’s operating profit based on longer-term investment returns increased by 7 per cent in 2011 to £2.07bn.
Tidjane Thiam, group chief Executive of Prudential, said: "Prudential has delivered another strong performance in 2011 led by Asia, where our life insurance business for the first time became the single largest contributor to our group IFRS operating profit. Since 2008, Asia’s contribution to this benchmark profit measure has almost trebled from £257m to £709m."
The group’s Asian operations generated an income of £784m in 2011 as against £604m in 2010.
Thiam added: "The heart of our strategy remains Asia, where our positive momentum has been maintained in 2011, with total IFRS operating profit up 30 per cent and a cash remittance to the Group of £206 million. Asia is generating both growth and cash and our focus on the fast-growing markets of South-East Asia continues to pay off. In the US, Jackson is one of the leading providers of variable annuities in the world’s largest retirement market."
In Prudential’s UK business, total IFRS operating profit was slightly higher than the prior year at £723 million, with long-term business generating £683m.
“In the UK, we continued to focus on value over volume and on increased IFRS operating profit. In asset management, both M&G and our business in Asia have seen continued net inflows and record IFRS operating profit,” Thiam concluded.