Pru’s Asian sales rise 30%

by Gill Montia

Story link: Pru’s Asian sales rise 30%

Prudential recorded a 13% rise in new business sales worldwide, in the first quarter of 2008.

However, new sales at its US business fell 7% during the three months, to £165 million.

The decline has been attributed to strong competition in the market and reluctance by US consumers to invest in certain products in the wake of the sub-prime crisis.

However, the group will be seeking acquisitions during the coming 6 to 12 months, to bolster its presence in US markets.

New sales growth in Asia forged ahead of analysts’ expectations in the first quarter, at 30%, to £375 million.

The stellar performance resulted in the group’s overall new insurance sales increasing to £729 million, against forecasts of £703 million. In the UK, new business sales rose 4%, to £189 million.

Pru’s Shariah compliant savings products proved particularly popular in Indonesia and Malaysia, and not only to Muslims.

Around 50% of sales in these regions were made to savers attracted solely by the ethical qualities of Shariah products.

The group is currently seeking a new chairman to replace Sir David Clementi, who is due to retire in 2010.

The change of leadership is likely to present an opportunity for an executive with internationally proven credentials.