Prudential PLC (LSE:PRU) reported a modest increase in operating profit as it unveiled a new strategy that includes "targeted investment in structural growth markets" across Asia and Africa.
Chief executive Anil Wadhwani said: "The interim results demonstrate the power of our multi-engine, multi-channel business model across Asia and Africa.”
Adjusted operating profit in the six months to 30 June 2023 rose 6% (at constant exchange rates) to US$1.46 billion from US$1.41 billion while new business profit jumped 39% to US$1.49 billion with 17 of its life markets delivering growth, 16 of which by double digits.
The FTSE 100-listed firm said in Hong Kong, both domestic and Chinese mainland visitor segments performed particularly well with annual premium equivalent sales from the domestic segment up 68% while the Chinese mainland visitor segment saw a significant increase in sales following the opening of the border with the mainland in February 2023.
Overall, annual premium equivalent sales rose 42% to US$3.03 billion while the insurer hiked the dividend by 9% to 6.26 cents.
Alongside the results, Wadhwani announced a new strategy called 'For Every Life, For Every Future' aiming to build a sustainable growth platform, through targeted investment across Asia and Africa.
He said Prudential would prioritise value creation, focus on the generation of free surplus that can be used to invest in new business at attractive returns, as well as return capital to shareholders via dividends.
The firm is targeting growing new business profit at 15-20% compound annual growth between 2022 and 2027 and achieving double-digit compound annual growth in operating free surplus generated from in-force insurance and asset management business between 2022 and 2027.