Prudential sees record Q3 sales in Asia

8th Nov 2011 09:04

Insurance giant Prudential reported strong profits in the third quarter, driven by expansion of new business in Asia.The firm said it had seen its highest ever third quarter of new business sales in Asia, pushing its shares up 2% in early trading.Excluding India, third quarter sales were up 24% on the third quarter of 2010 to £78m, compared with growth of 17% in the first two quarters of the year. New business profits grew 20% to £704m. Prudential said the Indian market had been impacted by regulatory reform, which pushed total new business growth in Asia down to 16%.The US market also showed strong growth in new business profits, up 17% to £622m. In the first nine months of the year the group recorded new business profits of £1,54bn, an increase of 14% over the same period in 2010. Total insurance sales increased 10% to £2,7bn.The UK was the exception in the growth stakes, with new business growing by just 1% to £194. "The UK continues to perform in line with [a] cash generative, value over volume strategy'" the firm said.The management of the Pru have faced repeated questions in the past as to whether the firm will remain headquartered in the UK with so much profit coming from abroad, particularly Asia.Chief executive, Tidjane Thiam, said Prudential had delivered strong results in the third quarter in a volatile and challenging environment. "Our strong balance sheet, proactive risk management and our leading position in Asia have allowed us to continue to grow profitably," he said.But he warned that during the third quarter of 2011 global financial markets experienced significant volatility brought on by concerns over European and US sovereign debt, as well as concerns about a general slowing of global demand reflecting an increasing lack of confidence among consumers, corporates and governments. "If sustained, this environment is likely to have a negative impact on our sector over time,' he said.