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Despite an uncertain global economic environment, international financial services group, Prudential plc (LSE:PRU), managed make a profit for the fourth consecutive year since its loss in 2008, the UK-incorporated firm said Wednesday.
In its full year results released earlier today, the insurance and asset management group reported statutory pre-tax profit of £3.188 billion in 2012, or 76% higher than the £1.828 billion it earned a year before.
On a IFRS basis, from which the statutory results were derived, the 165-year old provider increased its operating profit by 25% from a year ago to £2.533 billion, with about 39% of which coming from Asia at £988 billion – a figure that exceeded its target.
According to the company, its Asian operation grew the strongest, driven by “sweet spot” markets that include the Philippines, Thailand, Indonesia, and Malaysia and beat the firm’s targets in both profit and cash flow.
“The quality of our products, the strength of our multi-channel distribution platform, and our ability to innovate and develop creative solutions to meet our customers’ needs, translate over time into profitable and sustainable growth for the company,” Group Chief Executive, Tidjane Thiam, said in a statement.
Prudential said the business focused on value creation over volume and scrapped minimum sales or volume growth targets during the period, avoiding writing “poor value business”.
As a result, the company’s profit after tax surged by 54% to £2.197 billion, prompting the company to issue dividend at 15.9% more than a year ago to 29.19 pence a share.
The news boosted Prudential’s share price on the London Stock Exchange, gaining 27 pence, or 2.6% to £10.56 by 10:00 GMT.
However, the company still feels a “high level of uncertainty” as long-term interest rates in the insurance industry are still subdued.
Prudential still sees Asia as its key growth driver, particularly in South East Asia, where “the depth and breadth of Prudential’s franchise is a source of strength”.
