They say don’t count your eggs before they hatch, but British insurance giant Prudential might be justified in doing just that.
If forecasts are not far-off, then Prudential is looking at a potential 6% increase in profits for the first half of the year, according to
The Times. The insurer has its US and Asian businesses to thank, though, and not its home market.
According to the report, Prudential is likely to post £2.2 billion in profits because of the sterling collapse and the firm’s growth outside the UK – with Barclays analysts expecting a 27% fall in the UK division.
“The UK earnings are the drag, as the company took further management actions in 2016,” said the analysts, as quoted by the report.
Meanwhile, Prudential’s investment arm M&G is said to have upped its assets after huge outflows in 2016. The report said M&G’s Optimal Income fund supposedly lost £3.3 billion last year because of Brexit.
With operations in the UK, the US, Africa, and 14 markets in Asia, Prudential has £599 billion of assets under management and 24 million insurance customers.
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