Prudential chief still focused on Asia

1st Dec 2010 07:18

Prudential chief executive Tidjane Thiam has made Asia the cornerstone of a plan to drive the life insurance group's profits strongly forward over the next two years.Thiam, who failed to conclude a deal to buy the Asian business of US firm AIG earlier in the year, has projected the Pru's Asian arm will double its 2009 pre-tax operating profit of £465m by 2013.Asian new business profits are also being slated to double by 2013 from the £713m made in 2009.Thiam expects the business overall to generate £3.8bn cash over the period until 2013. Cumulative underlying free surplus generation will be £6.5bn over the same period (£1.5bn in 2010; and £5.0bn over 2011-13).Asia is forecast to generate £300m of net cash in 2013, up from £40m in 2009. US arm Jackson will deliver £200m net cash and the UK business £350m. "We delivered on our previous objective to double Asia new business profits between 2005 and 2009. I believe that the new objectives presented today are achievable given the group's proven strategy and the growth and profitability potential of our chosen markets," Thiam said. "The objectives for Asia reflect our belief that Asia will continue to offer the highest growth and highest return opportunities for a generation or more," he added.