PRUDENTIAL reported 43 per cent rise in new business profit to US$3.1 billion for the financial year ended last December, as compared to US$2.2 billion a year ago.
On a constant exchange rate basis, the new business profit would be up 45 per cent. Excluding the effect of interest rate and other economic movements, new business profit up 47 per cent, based on its financials released on Wednesday (Mar 20).
This was led by Hong Kong market, in particular the reopening of the border between Hong Kong and the Chinese mainland and consequential rebound of annual premium equivalent (APE) sales, said the Asia-focused insurer.
The new business profit for health and protection products increased 34 per cent on the year while that for savings product grew by 54 per cent.
“This was underpinned by a 37 per cent growth in APE sales, which, in absolute terms, exceeded the pre-pandemic level of 2019,” Prudential noted.
It highlighted new business profit growth in 17 of its 22 life markets, as well as an increased market share in seven of its Asian life markets.
The agency channel delivered new business profit of US$2.1 billion, up 75 per cent on the year, which reflects both a 67 per cent growth in APE sales and effects of favourable business mix.
Bancassurance new business profit fell 8 per cent to US$793 million primarily due to challenging market conditions in the China and Vietnam. The insurer added that APE sales through the bancassurance channel, however, increased 3 per cent on the year, supported by growth in Hong Kong and Taiwan.
“Hong Kong was a significant contributor to growth accounting for 45 per cent of new business profits in the period both its new business profit and APE sales grew by over three times the prior year level…
“We see an opportunity for sustained growth in Hong Kong as the drivers of demand from domestic and Chinese mainland visitors remain intact,” said Prudential.
Prudential’s chief executive officer Anil Wadhwani noted that sales growth has continued in the first two months of 2024 and the group is confident in achieving its 2027 financial and strategic objectives.
The group directors approved a second interim dividend of US$0.1421 per share. This brought its full-year dividend to US$0.2047 cents per share, up 9 per cent compared to FY2022.
As at midday market break on Wednesday, shares of Prudential were trading flat at US$9.71.
