Prudential nine-month new business profit up, to boost divi by 5% a year

FTSE 100 insurer Prudential reported a jump in new business profit for the first nine months of the year and said it plans to boost its dividend by 5% a year.

New business in the first nine months of the year rose to £1.97bn from £1.66bn in the same period a year ago, with annual premium equivalent sales up 16% to £4.55bn, driven by Asia and selective participation in the US and the UK.

Prudential said that its performance in Asia remains underpinned by positive long-term demographic trends and the effectiveness of its execution across its diverse regional platform.

New business profit from Asia was up 34% to £1.31bn. In the UK Life business, new business profit from retail sales was 41% higher at £179m, while new business profit in the US business was down 13% to £485m.

“The group continues to benefit from the favourable structural opportunities in its key markets and its well established leadership positions. During the current period of heightened macro-economic and other external uncertainties, our performance is well supported by the diversification of our international operations, our focus on high-quality sources of income and our broad currency mix.”

The company said on Wednesday that it will maintain its focus on delivering a growing ordinary dividend, adding that it plans to grow the dividend by 5% per year.

At 0818 GMT, Prudential shares were up 0.5% to 1,530p.