Prudential reports 11% rise in business profit, buoyed by strong performance in China and Southeast Asia

FTSE 100 insurer Prudential has reported a surge in new business profit for the first nine months of its financial year, citing "broad based growth" across its international markets.

In its third-quarter trading update, the Asia-centric insurance giant revealed it had achieved £2.35 billion in new business profit globally, marking an 11% increase from the same period last year, with significant contributions from China, Southeast Asia, and Africa, as reported by City AM.

Prudential's annual premium equivalent (APE) sales reached $4.64 billion (£3.6 billion) over the period, representing a 7% uptick on a constant exchange rate basis.

"Our multi-channel distribution model has driven broad based new business profit growth including, on a total regional basis, in Greater China, ASEAN and Africa," commented Prudential CEO Anil Wadhwani.

The company expressed confidence in meeting its projected new business profit growth trajectory of 9% to 13% by 2024.

Additionally, Prudential has entered into a strategic partnership with Bank Syariah Indonesia, the country's largest Islamic bank, potentially accessing around 20 million customers, according to CEO Anil Wadhwani.

Prudential also updated on the progress of its $2 billion (£1.6 billion) share buyback programme, with 66 million shares repurchased at a cost of £437 million as of the end of October.

Despite these positive developments, Prudential's market value has seen a decline over the past year amid economic deceleration in Asian markets.

The insurer's strategy has been largely viewed as a wager on the demand for financial services in Asia and Africa, following its spin-off from M&G in 2019, a significant fundraising event in Hong Kong in 2021, and its demerger from America's Jackson Life in 2022.

In 2022, Prudential's most profitable market was Hong Kong, followed by Singapore, Mainland China, Malaysia, and Indonesia, according to Danni Hewson, AJ Bell's head of financial analysis.