Prudential has unveiled its half year financial results for the six months ended June 30, in addition to announcing its new purpose and strategy for the company moving forward.
The firm’s new business profit shot up by 39% to US$1.489 billion, with 17 of its like markets delivering growth; a further 16 delivered this growth in the double digits. Not taking into account the effect of interest rates and other economic factors, Prudential’s new business profit grew by 52%.
Annual premium equivalent (APE) – a new function under IFRS 17 – sales also rose by 42% to US$3.027 billion, distinctly higher than the previous period’s 37%. Adjusted operating profit is also up by 6% to US$1.462 billion.
In-force insurance operating free surplus and asset management business saw a decline of 2% to US$1.438 billion. However, EEV operating profit still grew by 22% to US$2.155 billion, and GWS shareholder capital surplus over GPCR reached US$14.5 billion, equivalent to a cover ratio of 295%. The group also recorded an adjusted IFRS equity of US$36.4 billion, an uptick of 4% from the previous period.
In addition to its interim results, Prudential CEO Anil Wadhwani also announced a new strategy for the company following the completion of his strategic and operational review. The firm plans to build on a sustainable growth platform through targeted investment in structural growth markets across both Asia and Africa.
Concurrent to this, Wadhwani also outlined two key financial objectives in the company’s near future: new business profit growth of 15% to 20% compound annual growth between 2022 and 2027; and achieving double-digit compound annual growth in operating free surplus generate from in-force insurance and asset management between 2022 and 2027.
“Prudential has a great franchise with 175 years of history, top three positions16 in 12 of our 14 Asia life markets and four of our eight Africa life markets, scale in both agency and bancassurance, and more importantly the trust of our 18 million customers. We also have in-house investment capabilities with Eastspring managing over US$220 billion of assets,” he said.
“We have today announced that we will do things differently in the way we run Prudential. With a clear strategy, operational and capital allocation priorities, we are focused on delivering sustainable value for all our stakeholders: employees, customers, shareholders, and our communities.”
Earlier this year, the insurer’s Singapore division also launched the Prudential Financial Advisers (PFA), its financial advisory arm.
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