Prudential new business profit jumps 25%, outlook uncertain

[LONDON] British insurer Prudential posted a 25 per cent rise in half-year new business profit to US$1.18 billion on Wednesday, helped by a move towards more digital operations, although it cautioned about short-term uncertainty.

Analysts had expected new business profit from continuing operations of US$1.08 billion, according to a company-supplied consensus poll.

Chief executive Mike Wells said vaccination programmes should lead to "a gradual return to more normal economic patterns".

But he added that the pace of these programmes and their effect were likely to vary substantially and give a degree of uncertainty over the economic outlook - and the performance of the business in the short term.

The Asian-focused life insurer, which expects to complete the demerger of its US business Jackson next month, said it would pay a first interim dividend of 5.37 cents per share, unchanged from a year ago.

Mr Wells reiterated that Prudential was considering raising equity of around US$2.5-3.0 billion through a global offering to institutions and Hong Kong retail investors, following the Jackson split.

REUTERS