Prudential PLC (LON:PRU), which is in the process of spinning off its UK business M&G, posted a 12% increase in life insurance new business profit for the year to date with growth across all its markets.
In a trading update ahead of an investors conference in Singapore, the company said new business profit rose to £2.76bn in first nine months of the year from £2.47bn a year ago even as annual premium equivalent (APE) sales fell 4% to £4.97bn.
The Asia business delivered a 9% rise in new business profit to £1.76bn, led by a strong performance in health and protection, but APE sales dropped 5% to £2.65bn.
Eastspring, the Asian asset management business, saw funds under management increase to £149.2bn at September 30 from £138.9bn at December 31, boosted by net flows from its life businesses and additional funds from the acquisition of TMB Asset Management in Thailand.
The US unit, Jackson, posted a 16% rise in new business profit to £716mln, supported by higher interest rates and lower taxes, while APE sales edged down 9% to 31.18bn.
M&G Prudential’s new business profit gained 18% to £277mln with APE sales up 6% to £1.15bn as the division continued to see demand for products in the fund management arm PruFund.
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PruFund’s fund under management stood at £42.9bn at the end of September, up 19% on the start of the year, on the back of net inflows of £6.6bn.
However, total funds under management in M&G fell to £334.4bn on September 30 from £350.7bn at the end of 2017, reflecting a decline in external funds under management due to net outflows of £5.6bn.
Prudential said the demerger of M&G is on track, having recently appointed former Hargreaves Lansdown PLC (LON:HL. chairman Mike Evans as chair of the business and taking action to rebalance debt.
The group’s capital position improved, ending the period with a Solvency II surplus of £14.1bn, equivalent to a cover ratio of 205%, compared to a surplus of £13.3bn and ratio of 202% at the end of December.
Chief executive Mike Wells said: " Since our last Asia-based investor conference in 2014, our Asia business has more than doubled new business profit1, demonstrating our ability to capture high-quality growth at pace.”
“As we look ahead post-demerger, the profitable growth prospects of our Asia businesses remain substantial, given the increasing protection and savings needs of our customers and the extent of the footprint we have established.
"I look forward to showcasing the breadth of our capabilities and the reach of all of our businesses, which underpin my confidence in the ability of Prudential and M&G Prudential to capture the structural opportunities ahead and to continue to deliver for the benefit of all our stakeholders."