Sector movers: Prudential boosts life insurance sector as profits surge

13th Mar 2013 15:13

An impressive rise in the share price of financial services firm Prudential meant that the life insurance sector was the best performer of the day on Wednesday.Prudential, which provides insurance, pensions and asset management, was trading 8.07% higher at 1,112p in afternoon trade after increasing its full-year dividend by 16% following a 54% surge in profit before tax in 2012 which beat estimates.The company's Chief Executive Officer Tidjane Thiam said: "Our focus on capital and risk management has allowed us to deliver both growth and cash to shareholders, despite a challenging macroeconomic environment."Investec placed its 'hold' rating and 831p target price for Prudential under review after the results significantly beat consensus forecasts. Analyst Kevin Ryan highlighted the company's strong cash generation in Asia which, for the first time, became a major cash contributor, generating £384m last year compared with just £40m in 2009. Providing a drag on sector today was Aviva, a week after the firm unexpectedly slashed its dividend after reporting that it had swung into the red in 2012. The stock, down 10% over the past week, was slightly lower today, pulling back after making gains on Tuesday when newly-appointed Chief Executive Officer Mark Wilson invested nearly £500,000 with his debut purchase of shares in the firm.Wealth management outfit St James's Place was also lower, extending losses after banking group Lloyds yesterday trimmed its stake from 57% to 37% via a placing of 102m shares.Top performing sectors so far todayLife Insurance 5,847.17 +3.02%Industrial Transportation 2,619.04 +1.04%Gas, Water & Multiutilities 5,559.01 +0.51%Aerospace and Defence 4,593.67 +0.37%Real Estate Investment & Services 2,117.03 +0.28%Bottom performing sectors so far todayIndustrial Metals & Mining 2,533.09 -4.70%Tobacco 38,791.14 -2.19%Technology Hardware & Equipment 1,124.66 -2.00%Mobile Telecommunications 4,253.01 -1.58%Fixed Line Telecommunications 3,123.57 -1.50%BC