Prudential first-half operating profit up 6%

Insurer Prudential reported a forecast-beating 6 per cent rise in first-half operating profit to £2.06 billion (€2.4 billion), led by growth in Asia, the firm said on Wednesday, sending its shares higher.

Prudential, which is also listed in Hong Kong and Singapore, has been focusing on expanding its Asian business. Progress in Asia helped to offset lower profit from its British asset management arm M&G.

Analysts had expected operating profit of £1.88 billion, according to a consensus forecast compiled by the company.

Outflows

The firm posted operating profit of £743 million in Asia, a 15 per cent rise on a year earlier and beating a forecast £725 million. However, M&G suffered a 10 per cent drop in operating profit to £225 million, and the firm said it continued to experience “significant net outflows” in the first half.

Prudential's UK-domiciled operations, including M&G, could be hit by a British withdrawal from the European Union, it said in a trading statement.

M&G said shortly after the Brexit referendum that it was looking at expanding its operations in Dublin.

Prudential said it increased its interim dividend by 5 per cent from a year earlier, to 12.93 pence a share.

Prudential’s shares rose 1.9 per cent to 1,418 pence in early trading, making it one of the top gainers in the FTSE 100 index. – (Reuters)