Asia powers Prudential to sturdy rise in sales

By ELLIOT WILSON
Updated: 05:29 EST, 11 November 2010

Prudential continues to shrug off a tumultuous year, drawing on its presence in Asia to post a healthy jump in third-quarter sales and profits.

South-east Asia again provided succour for the insurer, which failed in a hugely ambitious £24billion bid to buy AIG’s Asian arm earlier this year.

Sales to Malaysian customers soared 54 per cent in the first nine months, and by 49 per cent and 48 per cent respectively in Indonesia and Singapore.

Strong performance: Prudential reported a 17 per cent increase in third-quarter group sales

Overall Asia sales rose 25 per cent to £1.07billion, with new-business profits jumping 34 per cent to £621million.

In a statement the insurer said it was ‘well positioned to deliver strong growth and generate strong returns’. 

Group sales increased by 17 per cent over the third quarter, to £809million, and by 24 per cent over the first nine months.

Pru (down 7.5p at 623p) said: ‘With the exception of India we expect that the favourable market conditions will persist for the remainder of the year, sustaining our sales momentum.’

Analysts were largely upbeat about the Pru’s prospects. Panmure Gordon analyst Barrie Cornes said the company’s solid financials ‘help reinforce the strength of the group, particularly in Asia’. Cornes maintained his buy rating and 781p target price on the insurer.