Insurance giant Prudential reported strong profits in the third quarter, driven by expansion of new business in Asia.
The firm said it had seen its highest ever third quarter of new business sales in Asia, pushing its shares up 2% in early trading.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The US market also showed strong growth in new sales, up 17% to £622m.
In the first nine months of the year the group recorded new business profits of £1,54bn, an increase of 14% over the same period in 2010. Total insurance sales increased 10% to £2,7bn.
The UK was the exception in the growth stakes, with new business growing by just 1% to £194.
The management of Prudential have faced repeated questions in the past as to whether the firm will remain headquartered in the UK with so much profit coming from abroad, particularly Asia.
Chief executive, Tidjane Thiam, said Prudential had delivered strong results in the third quarter in a volatile and challenging environment.
"Our strong balance sheet, proactive risk management and our leading position in Asia have allowed us to continue to grow profitably," he said.
But he warned that during the third quarter of 2011 global financial markets experienced significant volatility brought on by concerns over European and US sovereign debt, as well as concerns about a general slowing of global demand reflecting an increasing lack of confidence among consumers, corporates and governments.
"If sustained, this environment is likely to have a negative impact on our sector over time,' he said.
-
Higher earners face £377 bill if Reeves puts up income tax – do you fit the Treasury’s definition of ‘working people’?Labour’s election manifesto pledged not to raise National Insurance, VAT or income tax but prime minister Keir Starmer appeared reluctant to repeat the promise this week
-
Ofgem could write off £500 million of energy debt for 195,000 households – would you be eligible?Energy debt costs the average billpayer on the Ofgem price cap £52 a year.
