Asian sales figures rescue the Pru

Published on Thursday 17 April 2008 21:42

ASIAN sales have again rescued insurance giant Prudential, which yesterday revealed a sharp fall in US sales.

The London-based group, which competes with Norwich Union-owner Aviva for the top spot in the UK sector, reported a 14 per cent rise in first-quarter sales, despite flat revenue in the UK and a slide in sales in the US.

Total group sales rose to 729 million on an industry-standard annual premium equivalent (APE) basis. The figure was around 4 per cent ahead of analysts' expectations for sales of 703m. Most of the growth came from Asia, with the region now accounting for more than half of all of the Pru's new business. Sales in the first quarter in the Far East rose 30 per cent to 375m.

Chief executive Mark Tucker said the group's prospects for the year were bright.

"This confirms the resilience that we derive from our geographic spread, and particularly the role of Asia as our leading source of new business," he said.

The Asian success came in stark contrast to the US, where sales slumped 7 per cent to 165m.

Besides falling consumer confidence, Prudential claimed volatility on the stock market had seen customers shy away from equity based products.

Tucker said he maintained confidence in its US business – Jackson National Life.

Analysts were expecting weak results in the US and UK, and were surprised about the performance in Asia. Some suggested the Pru's ability to continue to grow in difficult market conditions could make it attractive to possible bidders.

Pru shares fell 8p to 674.5p.