LONDON (ShareCast) - (Sharecast News) - Prudential reported an 11% increase in new business profit to $2.35bn for the first nine months of the year on Wednesday, buoyed by its multi-channel distribution strategy and strong geographic diversity.

The FTSE 100 company said that excluding economic impacts, new business profit rose 9%, while annual premium equivalent (APE) sales grew 7% to $4.64bn year-to-date.

Growth was particularly strong in the third quarter, with APE sales rising 10% year-over-year across all segments.

Key markets showed a varying performance - in Hong Kong, new business profit increased by 8% due to improved margins following earlier pricing actions.

APE sales in the third quarter rose 12% year-on-year, driven by both domestic customer growth - up 36% - and sales to Chinese mainland visitors.

Prudential's Chinese mainland joint venture, CITIC Prudential Life, achieved a 12% rise in new business profit, aided by a strategic shift toward higher-margin products, despite a 6% year-to-date decline in APE sales.

A $176m cash injection from each shareholder will bolster the venture, pending regulatory approvals.

Singapore saw a 15% increase in new business profit, with APE sales up 14% year-to-date.

The agency channel outperformed in the third quarter, offsetting a decline in bancassurance.

In Malaysia, new business profit dropped 6%, but APE sales grew 7%, influenced by channel shifts and repricing efforts to counter medical inflation.

Indonesia's new business profit slipped 2%, yet APE sales improved in Q3, driven by health and protection product demand.

Prudential's 'growth markets and other' segment saw an 11% rise in new business profit, supported by robust APE sales in Thailand, Taiwan, India, and Africa, though margins were impacted by product mix changes.

Eastspring, Prudential's asset management arm, saw funds under management increase to $271.4bn as of September, boosted by $4.6bn in net inflows this year.

"Our new business performance in the third quarter saw our momentum continue as expected," said chief executive officer Anil Wadhwani.

"APE sales for the three months ended 30 September were up 10% compared with the same period last year.

"Our multi-channel distribution model has driven broad based new business profit growth including, on a total regional basis, in Greater China, ASEAN and Africa."

Wadhwani said that looking ahead, the company remained on track for growth in new business profit in 2024 of between 9% and 13%.

"Through our transformation programme we continue to drive growth and quality. In line with our ambition to expand our distribution strength in our key ASEAN markets, we are delighted to enter a long-term partnership with Bank Syariah Indonesia, the biggest Syariah bank in Indonesia, which gives us access to circa 20 million customers.

"We have also taken full ownership of our Nigeria life operations."

At 0821 GMT, shares in Prudential were up 3.51% at 670.72p.

Reporting by Josh White for Sharecast.com.

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