Insurance giant Prudential sees sales and profit surge

Prudential sales rose sharply in the first-quarter as the insurance giant benefited from the lifting of Covid restrictions in China.

The Asia-focused insurer’s annual premium equivalent sales rose 29 per cent to $1.55billion (£1.2billion), or by 35 per cent at constant exchange rates, while new business profit was up 30 per cent to $743million (£595.7million).

London-listed Prudential shares surged 3.5 per cent to £11.92 in morning trading on Friday. 

Prudential said momentum, especially in Hong Kong, has continued into the second quarter

Shares are now up by around 1 per cent since the start of the year, having slumped 12 per cent in March after it was caught in the market rout following the collapse of Silicon Valley Bank, despite Prudential stressing it had minimum exposure to the bank.

Chief executive, Anil Wadhwani, said: ‘The strength of our distribution capabilities and the diversification of the business across country, product and channel contributed to our performance in the first quarter. 

‘Ten out of the 13 life insurance markets in Asia, as well as Africa, achieved double-digit growth in new business profit.’

Looking ahead, Prudential said business momentum, especially in Hong Kong, has continued into the second quarter. 

It added it was confident it would  ‘meet the growing health, protection and savings needs of our customers in Asia and Africa’.

The insurer is listed in London but now focuses solely on Asia and Africa, having sold off its US and UK arms. Its entire senior management team has moved from London to Hong Kong. 

Last month, Prudential reported an 8 per cent rise in profits for 2022 to $3.4billion (£2.7billion).

But it also revealed it has around £800,000 of exposure to SVB against a total debt book of £19billion.

‘Our exposure to SVB is de minimis,’ said the Pru’s chief financial officer James Turner at the time. 

‘We are very conservative in the positioning of our balance sheet.’