Prudential sees slight Q3 slowdown in new business

6th Nov 2023 07:28

(Sharecast News) - Multinational insurance company Prudential said it continued momentum in the third quarter, though new business sales and profits slowed slightly from the half-year stage.

New business profits for the nine months to 30 September were up 37% year-on-year at $2.14bn - down from 39% growth registered for the first six months of the year.

Notably, the company said that 15 of its life markets across Asia and Africa delivered double-digit growth in new business profit over the year to date, compared with 16 at the half-year stage.

Year-to-date APE sales - Prudential's key measure of new business activity that comprises the aggregate of annualised regular premiums and one-tenth of single premiums on new business written - were up 40% at $4.42bn, led by the Hong Kong market, with increased sales to both Chinese Mainland visitors and domestic customers compared with the same period last year. That was also a slight slowdown from the 42% growth registered in the first half.

Nevertheless, chief executive Anil Wadhwani said consumer demand in Asia "remained resilient" in the third quarter, with ongoing demand for both savings and health and protection products in Hong Kong.

However, he did note that, in the Chinese Mainland market, "industry-wide changes in both product and bancassurance distribution regulations and our pro-active actions to diversify product mix are leading to some disruption in sales".

Looking forward, the company said the landscape remains "challenging" but new business momentum has continued into the fourth quarter.