Prudential maintains profit targets after "resilient" first half

28th Aug 2024 07:12

(Sharecast News) - Insurance giant Prudential said it is on track to hit its medium-term profit targets after a solid first half, and announced an acceleration in sales momentum since the period-end.

New business profit totalled $1.47bn in the six months to 30 June, which was 8% higher than last year when excluding the effect of interest rate and other economic impacts.

While this was down from the "exceptional" growth of 47% in the last financial year, the group reiterated its target of achieving a compound annual growth rate for new business profit of 15-20% by 2027.

Prudential said it put in a "resilient performance" during the first half, after taking steps to reposition the business in the Chinese Mainland ahead of both regulatory and macro-economic changes.

"Decisive action" was also taken medical repricing in Indonesia and Malaysia in advance of the market, the company said, while other markets such as Singapore, India and Taiwan have performed well due to product innovation and expansion of distribution capabilities.

Looking ahead, the company said: "We have seen a pick up in sales momentum in June, which continues into the second half of the year.

"The structural drivers of growth in Asia and Africa for our industry remain intact, with ongoing strong demand in respect of protection, long-term savings and retirement propositions as broader based economic growth returns to our markets. We continue to be confident in achieving our 2027 financial and strategic objectives."

Prudential declared an interim dividend of 6.84 cents per share, up 9% on last year.