Strong growth in Asia drives profits at Prudential

5th Aug 2011 07:07

First half profits at insurance titan Prudential jumped by a quarter to top expectations, driven by strong growth in Asia.Shares edged 1.59% lower to 620p after the open on Friday, but losses were not as steep as most on the FTSE 100, as the blue chip index lost 2.18%.Operating profit, on a International Financial Reporting Standards (IFRS) basis, rose 25% from £0.85bn to £1.06bn, ahead of expectations of £0.96bn. IFRS basic earnings per share increased 27% from 25.4p to 32.2p."For the first time, both our IFRS operating profit and our [European Embedded Value] new business profit have exceeded £1bn for the first six months of the year," said chief executive Tidjane Thiam.The firm saw a 12% reduction in total investment in new business, as its focus on capital allocation has allowed it to deliver higher profits.Strong performances in Indonesia, Malaysia and Singapore drove IFRS operating profit in Asia up 24% to £326m.Prudential said that while sovereign debt issues in the US and the Eurozone have had some adverse effects on the global economy, the company still thinks that its "substantial presence in growing and developing markets across Asia put us in a position to continue to deliver relative outperformance in the medium term."Annual premium equivalent sales in the first half grew by 10% from £1.66bn to £1.82bn."We expect to see continued, profitable and cash generative growth in the second half of 2011. We remain on course to deliver the 2013 profit growth and cash generation objectives we outlined at our investor day last year," Thiam said.The interim dividend was hiked by 20% from 6.61p per share to 7.95p.BC