Prudential PLC (LSE:PRU) shares climbed over 6% after the insurance company announced strong profits growth in 2021, helped by new insurance business.
In its first annual results since the completion of the strategic demergers of its US Jackson business and the spin-off of its British and European business M&G, the Asia and Africa-focused company reported operating profits of US$3.23bn, up 16% on 2020, with annual premium equivalent (APE) sales rising 8% to US$4.19bn.
It reported robust growth in new business profit, which increased by 13% to US$2.52bn.
The group’s life and asset management businesses delivered 8% operating profit growth last year despite higher COVID-19-related claims.
"Prudential has delivered high-quality, resilient growth as we completed the strategic re-positioning of our business to focus solely on Asia and Africa,” commented chief executive Mike Wells, who is retiring at the end of March.
The CEO said Prudential entered 2022 with a strong balance sheet and capital position after a US$2.4bn equity raising last year was used to pay off debt.
He highlighted challenges caused by the extended mainland China border closure in 2021, noting that the timing of the opening of the Hong Kong border remains uncertain.
In addition, the COVID-19 pandemic will continue to have an impact, while the conflict in Ukraine could have wider implications for global economic and market conditions, Wells added.
Prudential declared a second interim ordinary dividend of 11.86 cents per share, giving a payout of 17.23 cents for the full year.
Shares were 6.18% higher at 1,091p in midmorning trade.