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(Alliance News) - Prudential PLC on Tuesday reported a rise in first-quarter annual premium equivalent sales, but said new business profit was largely flat after "allowing for economic impacts".
Shares in Prudential fell 4.6% to 707.20 pence in early trading in London on Tuesday, the worst large-cap performer.
The Asia-focused insurer said first quarter new business profit, excluding economic impacts, rose 11% at constant exchange rates to USD810 million, compared to USD727 million a year prior. But, after allowing for economic impacts, new business profit was broadly unchanged at USD726 million.
At actual exchange rates, and factoring in the "economic impacts", new business profit fell 2.3%.
First quarter annual premium equivalent sales increased 4.2% to USD1.63 billion from USD1.56 billion a year prior, despite strong comparatives in Hong Kong and headwinds in Vietnam. At constant currency, it grew 7.3%.
Chief Executive Anil Wadhwani said he was "pleased" with the results.
"Our continued focus on the quality of business written is reflected in new business profit (excluding economic impacts) growing more than APE sales. Our total APE sales have grown sequentially each quarter since [the third quarter of 2023], reflecting resilient consumer demand across Asia and demonstrating the strength of our multi-market and multi-channel distribution model," the CEO said.
Wadhwani said this provided the insurer with a "sound base" for continued new business growth in 2024.
"We are increasingly confident in achieving our 2027 financial and strategic objectives," he said.
There was no share buyback, but Wadhwani said Prudential would provide an update on its capital management plans by its half-year results.
In Hong Kong, Prudential said total APE sales grew 1%, despite the significant rebound in the first quarter of 2023. Both domestic and Chinese Mainland visitor segments grew.
APE sales rose 2% In Singapore, by 29% in Malaysia, but fell 10% in Indonesia.
Across the businesses in its "growth markets and other" segment, a strong increase in APE sales of 28% was generated in total, driven by Thailand, Taiwan, India and Africa. This more than offset continued weakness in Vietnam. New business margins declined given business mix effects, but given the significant growth in APE sales, overall new business profit increased.
By Jeremy Cutler, Alliance News reporter
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