Prudential's profit up 33%, beats forecasts |
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Thu, 16 Mar 2006 20:15
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LONDON: Insurer Prudential Plc. beat market forecasts posting a 33 per cent increase in its operating profit for 2005 compared with 2004, helped by a better than expected results at its U.S. operations. The profits stood at 1.71 billion pounds, well above the average forecast of 1.58 billion pounds.
The insurer's new chief executive Mark Tucker said the company had a successful year across all its businesses. "We have ambitious growth plans in place and I am confident in the outlook for the group's future prospects."
He reported premiums from new insurance business increased 15 per cent to more than 2.1 billion pounds, as new businesses brought profits of 867 million pounds.
The company's U.S. business, Jackson National, posted record sales, along with a 46 per cent increase in new business profits to 211 million pounds. Its main annuity product range brought in improved profitability.
Tucker said the company will continue to explore bolt-on acquisitions in the U.S. to increase its market share there. The company had acquired Atlanta-based Life of Georgia last year.
Prudential's Asian division put up a good show with new business growing 23 per cent to 731 million. Higher sales in the U.K. life business were, however, neutralised by a decline in profit margin because of increased sales of lower-margin products such as pension annuities. Its banking operation, Egg's underlying profit fell to 60 million pounds from 72 million pounds.
Tucker said the company is making progress towards its target of achieving 40 million pounds in annualised cost savings across its U.K. operations by 2007.
The insurer has recommended a final dividend of 11.02 pence per share, making a total of 16.32 pence. Prudential shares gained 7.5 pence to reach 612.5 pence giving it a market value of 14.5 billion pounds.
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