Prudential Plc today announced its year end results for 2019 and revealed that its adjusted operating profit from continuing operations has risen 20% from US$4,409 million to US$5,310 million and its net cash remittances from business units from continuing operations has increased from US$1,417 million to US$1,465 million.
2019 saw a drop in life new business profit from continuing operations for Prudential which decreased from US$4,407 million to US$4,405 million and a 32% drop in IRFS profit after tax from continuing operations which decreased from US$2,881 million to US$1,953 million. This decrease in IRFS profit is after a US$380m post-tax loss in Jackson where, Prudential said, accounting volatility continues to be expected given the economic nature of its hedging programme and the related accounting mismatches that exist.
Mike Wells, Prudential plc’s group chief executive, said: “We have delivered another positive performance during 2019, despite significant macroeconomic and geopolitical volatility. Our clear strategy and strong execution have enabled us both to deliver profitable growth and to position ourselves for further growth into the future.”
The organisation is delivering broad-based growth in Asia with double-digit growth in new business profit in eight markets in this region, with Asia embedded value up 23% to US$39.2 billion in 2019.
Looking at the Asia region, Wells said: “In Asia, we are focused on growth opportunities. We are building the long-term value of our fast-growing franchise by deepening our strong relationships with existing customers and by acquiring new customer relationships. We are continuing to strengthen our agency and bank channels in Asia, and harnessing the opportunities of digital technology, including Pulse by Prudential, our new end-to-end digital health app. We see continuing opportunities for selective inorganic investment.”
Wells also highlighted how the coronavirus outbreak has slowed economic activity and dampened Prudential’s sales momentum in Hong Kong and China.
“Given these conditions, lower levels of new sales activity in affected markets are to be expected with a consequential effect on new business profit,” he said. “Our in-force business is proving robust. The broad geographic spread of our business across the region and the strength of our recurring premium business model lends considerable resilience to our earnings.”
Discussing the overall results of the organisation, Wells said: “I am confident that, with our clear focus on our structural growth markets and our continuing operational improvements, we will continue to deliver profitable growth for our investors and benefits for our stakeholders over the medium and long term.”