Prudential reports £1.7bn capital surplus and rising sales
Prudential has described its sales performance for 2008 as “good” with overall group insurance new business up 5% in “a really challenging environment”.
Sales for the year rose to £3.024 billion, up from £2.87 billion in 2007, with increases of 7% in the US, 6% in Asia and 4% in the UK.
In addition, the life assurer’s capital surplus stands at £1.7 billion before allowing for the 2008 final dividend and on that basis, chief executive, Mark Tucker, is confident that the business can ride out further stock market turmoil.
He states: “For instance, an instantaneous further decrease of 40% in equity markets levels from 31 December 2008 would reduce our IGD surplus by £350 million.”
Prudential has also announced that it has entered into an agreement to transfer the assets and liabilities of its agency distribution business in Taiwan, to China Life Insurance Company.
The move involves the company acquiring a 9.95% stake in China Life through a share placement and will create a net increase in Prudential’s capital surplus of approximately £800 million.
True to its name, the company has taken a “prudent” approach to its 2009 plans, “balancing new business with cash generation and capital conservation as our key drivers.”
Mr Tucker sees Prudential as having benefited from the recession so far because of a “flight to quality” among customers.
Category: Financials, Insurance News, Prudential Insurance News
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