London: Prudential Plc, the U.K.’s largest insurer, said earnings rose 7 per cent last year on stronger business in Asia.
Operating profit increased to £4.26 billion (Dh19.08 billion, $5.17 billion) from £4 billion a year earlier, the London-based company said in a statement on Tuesday. Profit declined 2 per cent when adjusted for exchange-rate swings.
Chief Executive Officer Mike Wells is betting on Asia as he pursues the insurer’s international expansion strategy and seeks to grow the dividend by 5 per cent each year and double operating profit from Asia over the five years through 2017. As competition and regulation intensified in Europe over the past years, Prudential has refocused its ambitions in long-term savings and protection markets on Asia, where it now has most of its life insurance customers.
With its focus on Asia, Prudential may well stay on the sidelines of consolidation of the industry in Europe, where insurers are ramping up for a wave of mergers and acquisitions as they seek to cut costs, diversify and divert resources into automation amid pressure from record-low interest rates.
Prudential shares have gained 2.3 per cent this year through Monday, giving the company a market value of £43 billion.
Prudential Plc has no relation to Newark, New Jersey-based Prudential Financial Inc.
