Prudential H1 profits rise as new CEO unveils pivot towards Asia

(Sharecast News) - Insurer Prudential on Wednesday posted a better-than-expected 6% rise in first-half operating profits as Chinese investors bought its products in Hong Kong after Covid restrictions were lifted, and also outlined a new investment strategy pivot towards Asia. Adjusted operating profit of the London and Hong Kong dual-listed company was came in at $1.46bn for the six months to June 30, compared with $1.41bn a year earlier and company-compiled estimates of $1.38bn.

Chief executive Anil Wadhwani, who joined the insurer in February, also unveiled a new strategy to target investment in structural growth markets across Asia and Africa.

Prudential said it expected the plan to generate 15-20% compound annual growth in new business profit by 2027, and achieve double-digit compound annual growth in operating free surplus in the same period.

Prudential's annualised premium equivalent (APE) sales, rose 37% to $3bn on a stronger pickup in sales from Chinese mainland visitors to Hong Kong. This figure also beat the consensus forecast of $2.93bn.

Reporting by Frank Prenesti for Sharecast.com