Pru profits up 17% to £498m

11 May 2011 10:02 am | By Natalie Holt

Prudential has seen a 17 per cent increase in new business profit for the first three months of the year to £498m, although UK new business profit has fallen 6 per cent.

The insurer posted a £427m new business profit over the same period last year.

In the UK new business profit went from £69m in Q1 2010 to £65m in Q1 2011. UK sales on an APE basis are up 3 per cent from £193m to £199m.

Sales of individual annuities were 29 per cent lower than the Q1 2010 at £42m. Sales of external annuities were down 42 cent on the same period last to £15m, which Pru says its partly due to the end of a partnership agreement in 2010.

Corporate pensions sales are up 30 per cent to £78m, while individual pensions sales including income drawdown were 13 per cent higher at £24m.

PruHealth sales remained relatively flat at £2m, reflecting Pru UK’s reduced share of the business following the acquisition of Standard Life Healthcare.

PruProtect sales were down 71 per cent, which the insurer attributes to a change in reporting following the reduction in Pru’s share of the business.  Underlying sales grew 15 per cent to £6m.

Pru’s asset management business M&G saw net fund flows drop 11 per cent from £1.9bn to £1.7bn. But funds under management have climbed 9 per cent from £182bn to £200bn.

Pru group chief executive Tidjane Thiam (pictured) says: “After a very strong 2010, our performance at the beginning of 2011 confirms that our strategy is delivering value to our shareholders. 

“We will continue to implement our strategy with discipline, allocating capital to the most attractive markets and products, while managing risk and capital prudently, but proactively.  Cash remittances and free surplus generation remain strong and we remain well positioned to achieve the objectives we have set ourselves for 2013.”

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