Prudential FY profits rise as China Covid easing boosts sales

Insurer Prudential reported a better-than-expected rise in annual profit on the back of new insurance sales and said China’s relaxation of Covid restrictions had also provided a boost.

The Asia-focused company saw adjusted operating profit rise 8% in 2022 to $3.38bn, beating a forecast of around $3.34bn from a company-compiled forecast.

"The removal of the bulk of COVID-19-related restrictions across the region and the progressive opening up of the Chinese Mainland economy has meant that 2023 has started well with encouraging progress in year-on-year sales," said new boss Anil Wadhwani.

Annualised premium equivalent (APE) sales rose 15% for the first two months of the current year from the same period a year ago, he added.

The insurer has now completed the move of its entire senior management team from London to Hong Kong - its new global headquarters - which is closer to its revenue sources.

"In Hong Kong we have seen a gradual increase in cross-border traffic from the Chinese Mainland as travel restrictions are eased," Wadhwani said, adding demand for savings products in Hong Kong business was driving the sales increase.

Reporting by Frank Prenesti for Sharecast.com