Prudential posts jump in Q1 sales, new business profit

Prudential posted a jump in first-quarter sales on Friday as it benefited from the easing of Covid curbs in China.

The Asia-focused insurer said that APE sales rose 35% to $1.56bn, driven by increasing cross border traffic from the Chinese Mainland and higher domestic demand in Hong Kong, alongside growth in many of its other business units.

APE sales is a measure of new business activity that comprises the aggregate of annualised regular premiums and one-tenth of single premiums on new business written during the year for all insurance products, including premiums for contracts designated as investment contracts under IFRS.

Meanwhile, new business profit was 30% higher at $743m.

The company 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. 10 out of the 13 life insurance markets in Asia, as well as Africa, achieved double-digit growth in new business profit. A key theme of our growth has been the success of new products as we continue to focus on meeting the diverse needs of our customers.

"APE sales grew significantly when compared with the same period in 2022. Following the removal of the bulk of Covid-19-related restrictions, our agency channel has seen continued momentum with APE sales increasing every quarter since Q2 2022."

Prudential said that business momentum, particularly in Hong Kong, has continued to date in the second quarter and it maintains its "prudent" approach to asset allocation and credit risk.