Prudential H1 operating profit rises but outlook cautious

Asia-focused insurer Prudential reported a rise in first-half operating profit on Wednesday but struck a cautious note over the outlook.

Adjusted operating profit increased 8% compared to the first half of 2021 to $1.66bn. This was driven by a 6% jump in life and asset management adjusted operating profit, as well as a 32% reduction in central costs, Prudential said.

The interim dividend was lifted 7% to 5.74 cents a share.

Annualised premium equivalent (APE) sales were 9% higher at $2.2bn, reflecting diversified geographic footprint, product mix and distribution channels.

Chief executive Mark FitzPatrick said: "Our resilient operational performance demonstrates the strength of our well positioned and well diversified franchise across the Asia region, driven by our multi-channel, digitally enhanced distribution platform. This enabled us to maintain APE sales growth over the first quarter, despite considerable Covid-19-related disruption in many markets. We achieved stronger APE sales growth in the second quarter as conditions started to normalise in most markets."

He added: "Although there are signs that Covid-19-related impacts in many of our markets are stabilising, over the remainder of the year we expect that operating conditions may continue to be challenging.

"We remain confident that Prudential has the financial resilience, capital strength and capability to meet the growing health and savings needs of our customers in Asia and Africa. By doing so, we believe we will deliver on our purpose to help people get the most out of life and also build value for our shareholders over the long-term."