LONDON (ShareCast) - (Sharecast News) - Asia-focused insurer Prudential on Wednesday reported a rise in annual operating profit driven by new business amid the Covid pandemic.
Adjusted operating profit increased 16% to $3.23bn and beat the consensus of $3.19bn. New business profit rose 13% to $2.5bn.

A final dividend of 11.86 cents was declared, making a total of 17.23 cents per share for the full year, up 7%.

New business levels in Hong Kong, its Asia headquarters, continued to face pressure from the extended mainland China border closure, the company said.

"The timing of the opening of the Hong Kong border remains uncertain and Covid-19 will continue to have an impact", said outgoing chief executive Mike Wells.

Prudential's results are its first after two major demergers as it pivoted to focus on Asian and African markets. It sold its US business Jackson last September, after a spin-off of British and European business M&G in 2019.

"The current conflict in Ukraine could have wider implications for global economic and market conditions as well as geopolitical relations," Wells added.

AJ Bell investment director Russ Mould said there was now clarity to Prudential's strategy as it focused on Asia and Africa.

"These insurance and investment markets are much less mature and should allow Prudential to grow more rapidly than rivals focused on the West as it sells financial products to these underserved populations," he said.

Richard Hunter at Interactive Investor said despite a 32% share price fall over the last year, as compared to a gain of 3.5% for the wider FTSE 100, the market consensus of the shares as a strong 'buy' "underlines market confidence in prospects, even though the view will be based on a longer term time horizon".

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE