Asia growth drives 4% rise in Prudential 2020 operating profit

[LONDON] Prudential's operating profit rose 4 per cent in 2020, Britain's largest insurer said on Wednesday, driven by strength in its main Asian business, as it prepares to split off its US operations.

Overall adjusted operating profit from continuing operations came in at US$5.5 billion, while Asia adjusted operating profit jumped 13 per cent to US$3.7 billion, the company said in a statement.

The life insurer said in January it would split off Jackson, its business in the United States, through a demerger and may raise US$2.5-3 billion in new equity, following pressure from activist investor Third Point.

It said on Wednesday that it was making "good progress" on the separation.

Jackson's operating profit fell 9 per cent to US$2.8 billion.

"The proposed demerger will complete Prudential's structural shift from a diversified global group to a growth business focusing exclusively on the unmet health, financial protection and savings needs of people in Asia and Africa," chief executive Mike Wells said.

Prudential said it would pay a second interim dividend of 10.73 cents per share, and a total dividend of 16.10 cents per share.

Prudential shares were up 0.9 per cent at £14.98 by 8.53am GMT.

Earlier in the session they hit a near two-year high of £15.10.

REUTERS