Prudential Singapore's FY16 APE flat, PVNBP up a notch

BRITISH insurer Prudential Singapore's new business activity measured on an European embedded value (EEV) and constant-exchange-rate basis, was flat in 2016.

The annual premium equivalent (APE), a measure of new-business activity, for its Singapore operations was flat, up a touch by one per cent year-on-year to £351 million (S$603 million).

For the full year, present value of new-business premiums (PVNBP), a gauge of new-business sales, was five per cent higher at £2.63 billion.

At the group level, International Financial Reporting Standards (IFRS) profit after tax came in at £1.92 billion in FY16, down 32 per cent on a constant exchange rate basis from a year ago, taking into account negative short-term investment variances, sale of the Korea life business and the total tax charge for the year.

Group IFRS operating profit was lower by two per cent at £4.26 billion, despite a 15 per cent year on year growth in Asia operating profit to £1.64 billion.

Full year ordinary dividend was up 12 per cent to 43.5 pence per share. In 2015, an ordinary dividend of 38.78 pence a share was declared, as well as a special dividend of 10 pence a share.

Mike Wells, the insurer's group chief executive, on Tuesday said: "Our performance has been driven by Asia, which has delivered a seventh consecutive year of double-digit growth in new business profit, IFRS operating profit and capital generation. In the fourth quarter of 2016, quarterly APE sales in Asia exceeded £1 billion for the first time, with eight of our markets in the region growing by more than 20 per cent.

"For the full year, our new business profit in this region increased by 22 per cent to £2,030 million, IFRS operating profit was 15 per cent higher at £1,644 million and free surplus generation grew 15 per cent to £859 million. In the US and in the UK, our businesses remain well positioned to navigate a period of significant regulatory change. We remain on course to achieve our 2017 financial objectives."