Prudential ups divi after 'strong' performance

13th Aug 2009 07:03

Insurer Prudential said its half-year results show continued "strong performance" in what still remains challenging market conditions.The group raised half year dividends by 5% to 6.29p per share in contrast to peers Aviva and Legal & General, which slashed dividends.IFRS operating profit before tax from continuing operations increased 6% to £688m, driven by strong underlying operating performance in Asia, together with a one-off benefit from a regulatory change in Malaysia. Group operating profit before tax based on longer term investment returns, on the European Embedded Value (EEV) basis, was down 8% to £1,246m. New business profit increased by 25% to £691m, while new business sales on an APE basis decreased by 8% to £1,321m.The group's capital surplus was estimated at £2.5bn at 30 June 2009, an increase of £1bn over the year end, giving it an estimated solvency ratio of 237%. In July 2009, it issued a bond of US$750m, which is estimated to further boost its IGD capital surplus by £0.5bn to £3bn.UK operating profits improved on the first half of 2008, which was offset by a reduction in the US operating profit, lower asset management profits and reduced investment income on central funds."While we expect the business environment to remain difficult through the rest of 2009, Prudential is very well positioned to take advantage of any improvement in market conditions," said the group."Our Group-wide focus on long-term profitable growth remains unchanged and our combination of geographic diversification, advantaged distribution and flexible and full product range all mean we can focus on the most profitable opportunities, especially in the pre and post-retirement sector," it added.