Prudential PLC Plans Full Separation of US Arm; 1st Half Net Profit More Than Halved
August 11 2020 - 5:29AM
Dow Jones News
By Ian Walker
Prudential PLC said Tuesday that it plans a full separation of
its U.S. arm in order to focus on growth opportunities in Asia and
Africa, as it reported a more-than-halved net profit for the first
half of the year.
The insurance-and-investment business said it will start with a
minority IPO of the unit--which includes Jackson National Life
Insurance Co. and asset-management firm PPM America Inc.--during
the first half of next year, then a full divestment over time. In
June, Prudential agreed to sell an 11.1% minority stake in the U.S.
business to Athene Holding Ltd. for $500 million.
Prudential made an IFRS net profit from continuing operations of
$512 million for the half year ended June 30 compared with $1.15
billion for the comparable period last year.
Adjusted operating profit--one of the company's preferred
metrics which strips out exceptional and other one-off items--was
$2.54 billion compared with $2.62 billion.
Group regulatory capital surplus--a key measure of balance-sheet
strength--was estimated at $12.4 billion, equivalent to a ratio of
334% compared with a ratio of 309% at Dec. 31, 2019,
Gross premiums earned were $19.84 billion, compared with $21.08
billion a year earlier.
The board has declared a dividend of 5.37 cents a share and that
based on current estimates it expects to pay a total dividend of
16.10 cents a share.
Shares in London at 0850 GMT were up 38.50 pence, or 3.1%, at
1270.50 pence.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
August 11, 2020 05:14 ET (09:14 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Prudential (LSE:PRU)
Historical Stock Chart
From Mar 2024 to Apr 2024
Prudential (LSE:PRU)
Historical Stock Chart
From Apr 2023 to Apr 2024
