Insurance giant Prudential Plc has gone from strength to strength after announcing a surge in profits during the first nine months of the year – but with a significant caveat about its US business.
The company has seen new business profits climb by 19% over the period, driven in part by a leap in Asian business. According to a Reuters
report, the British company, which serves around 24 million customers and has £562 billion in assets under management, saw new business profit reach £1.97 billion ($2.45 billion) – that’s up from £1.66 billion ($2.06 billion) one year earlier.
The rise in new business profit was largely prompted by retail sales in its British life insurance business, which reached £179 million; while in Asia new business profit leapt by 34% on an actual exchange rate basis to reach £1.31 billion. APE sales also increased by 25%.
However, here in the USA, meanwhile, business slumped by 13% to stand at £485 million ($602 million). The blame was largely placed on the Department of Labor tightening rules around the sale of variable annuities that offer a variable rate of income above the guaranteed minimum level.
Speaking to Reuters
, the company’s chief financial officer Nic Nicandrou commented that while the US annuity market had been “disrupted” by the ruling, the growth outlook was strong.
As of the end of October, the group had a capital ratio of 189%, up from 175% as of the end of June.
British insurers weigh impact of EU law on sector
Major insurer names vice president to help manage distribution partnerships