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Pru raises dividend after 24% increase in operating profits

Prudential has reported a 24 per cent increase in operating profits and has increased its dividend by 20 per cent.

Its 2010 results, published last week, show a 24 per cent increase in operating profits before tax on an IFRS basis, up from £1.56bn to £1.9bn. Prudential announced a 20 per cent increase on an EEV basis, from £3bn to £3.7bn.

The group also announced a dividend increase of 20 per cent to 23.85p.

Prudential UK announced a profit increase of 7 per cent, from £921m to £982m for 2010 on an EEV basis.

Profits increased by 9 per cent on an IFRS basis from £657m to £719m.

UK annuity sales were down 9 per cent to £124m, which the company attributes to less people retiring during the year.

Sales of UK onshore bonds increased 15 per cent to £166m and with-profits bond sales increased 11 per cent to £146m.

Unit-linked bond sales rose 61 per cent to £20m, partially due to the launch of Pru Dynamic portfolio funds in January 2010.

UK individual pension sales increased 3 per cent to £69m and corporate pension sales rose 5 per cent to £221m.

Group chief executive Tidjane Thiam says: “Our disciplined approach to capital allocation, proactive risk management and focus on profitability are generating both growth and cash for our shareholders.”

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