Prudential set for AGM fireworks despite strong start to 2010
Insurer Prudential (LON:PRU) said this morning that group-wide sales were £1.355bn for the first five months of 2010, up 27% on the prior year period. The group said it enjoyed a strong performance in Asia, with sales up 33% to £579m in the first five months of 2010. There were record retail sales in the US, with new business sales of £454m, up 41%. Ahead of its reconvened AGM today, Prudential reported that sales in the months of April and May 2010 were up 28%, exceeding the 26% growth reported in the first quarter of this year. Prudential chief executive, Tidjane Thiam, is expected to face a rocky ride from shareholders at today's meeting following the collapse last week of a deal to buy AIA, the Asian arm of US insurer AIG.
In Asia, APE (annualised premium basis) new business sales were £579m, an increase of 33% on the first five months of 2009 (2009: £435m). The business recorded its highest ever sales for the months of both April and May, achieving growth of 38% over the same period last year and ahead of the 30% growth reported in the first quarter. In the US, Jackson delivered APE new business sales of £454m representing a 41% increase on the first five months of 2009 (2009: £323m). Prudential UK reported APE new business sales of £322m, up 4% on the same period in 2009 (2009: £309m).
M&G net inflows for the first five months of 2010 were robust at £3.4bn (2009: £7.9bn). Net inflows in the Asian asset management business were £0.3bn (2009: £1.5bn). After the exceptionally high levels of net new business experienced in 2009, this continues to be a strong performance in a re-invigorated and competitive environment, the company said.
Tidjane Thiam said: "Our strong start to 2010 has continued in April and May. Our strategy to focus capital on the most profitable geographies and products is delivering excellent results. We have been consistent in our commitment to our strategy and the proposed acquisition of AIA was intended to accelerate this strategy. Throughout the period of our proposed transaction with AIA, our businesses continued to perform strongly, particularly in Asia and the US. All of our businesses have a strong momentum and we will continue to focus on delivering shareholder value."
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Prudential plc (Prudential), is an international financial services group, with operations in Asia, the United States and the United Kingdom. Prudential is structured around four business units: Prudential Corporation Asia, Jackson National Life Insurance Company (Jackson), Prudential UK insurance operations and M&G. Prudential Corporation Asia's core business is life insurance, health and protection, either attached to a life policy or on a standalone basis, and mutual funds. It also provides selected personal lines property and casualty insurance, group insurance, institutional fund management and consumer finance (Vietnam only). In November 2011, Prudential announced that its Asian Fund Management operations would be rebranded Eastspring Investments. Its indirect wholly owned subsidiary, Jackson National Life Insurance Company, purchased SRLC America Holding Corp (SRLC) from Swiss Re AG, on September 4, 2012. more »
1 Comment on this News show/hide all
I see that Richard Buxton, head of UK equities at Schroeders, is actively calling for the head of Tidjane Thiam. I can't see that happening but it's very nice to hear institutional shareholders being vocal! Pity it takes a £450 million bill for that to happen.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7144459.ece