Prudential UK’s profits rose 8 per cent in the first half of 2016 following its decision to exit the annuity market because of stringent capital requirements.
Results published today show operating profits in the life business increased to £473m, up from £436m in the same period last year.
Pru says “management actions to support solvency” contributed £140m, up from £61m in 2015. While profits from new annuity business fell from £66m to £27m.
In January it was revealed the firm was pulling back from the annuity market as the pension freedom reforms and the impact of Solvency II bit.
In addition, the firm’s with-profits range – PruFund – saw sales jump 80 per cent, to £438m up from £243m.
Overall the group – which generates far higher profits in the US and Asia than the UK – made an operating profit of £2.1bn, up 6 per cent on last year.
Prudential group chief executive Mike Wells says: “The group’s performance is led by double-digit growth in Asia… In the US and the UK, we continue to successfully manage the effects of market turbulence. The quality of our earnings, geographic diversity and strong balance sheet position us well to grow over the long term. We remain on track to achieve our 2017 financial objectives.”