PRUDENTIAL’S net profit for the first half ended Jun 30 fell 81 per cent to US$182 million, from US$947 million in the previous corresponding period, on an actual exchange rate basis.
Net profit would have fallen 80 per cent from US$924 million on a constant exchange rate basis.
The insurer on Wednesday (Aug 28) attributed the lower net profit to changes in short-term fluctuations from movements in interest rates.
Based on an actual exchange rate basis, new business profits – a measure of profitability for insurance businesses – fell 1 per cent to US$1.47 billion, from US$1.49 billion in the year-ago period.
Prudential said lower new business profits in H1 2024 were due to high base effects in the 2023 comparative period in many markets.
Earnings per share for H1 2024 stood at US$0.073, down from the prior year’s US$0.345.
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The board declared a first interim dividend of US$0.0684 per share for the first half, up 9 per cent from US$0.0626 previously.
Adjusted operating profit for the period rose 6 per cent to US$1.54 billion, from US$1.46 billion in H1 2023.
Prudential’s annualised premium equivalent (APE) sales – a closely watched gauge of insurance sales – were 3 per cent higher at US$3.1 billion, from US$3 billion in the year-ago period, based on an actual exchange rate basis.
By geographical region, profit contributions from Singapore rose significantly by 27 per cent to US$343 million, from US$270 million previously. New business profit was up 14 per cent at US$226 million, while APE sales increased 17 per cent to US$450 million.
Prudential attributed the higher new business profit to an increase in sales volumes.
Meanwhile, it said the growth in APE sales was due to an increased focus in investment into agency recruitment, as well as higher agent productivity – new business profit per active agent – and more active agents.
The first tranche of Prudential’s US$2 billion share buyback, which was announced in June this year, is being executed. As at Aug 22, some 22 million shares have been repurchased for £150 million (S$258.9 million).
The company said Asia and Africa remain as “structural drivers of growth”, noting strong demand for protection, longer-term savings and retirement propositions as markets are likely to experience broader-based economic growth.
