London - 21 October 2008
Total group insurance sales up 15 per cent
Group capital position robust- IGD surplus £1.2bn at 30th September
All figures in the table below are for the nine months to 30 September 2008, with comparisons to 2007 at constant exchange rates.
|Total Group Insurance
||£ 2,302 million
||£ 1,033 million
||£ 538 million
||£ 594 million
|Asia Asset Management
||Net Inflows of £1.0 billion down 63%
||Net Inflows of £4.1 billion up 15%
Mark Tucker, Group Chief Executive said:
"Prudential has delivered a strong performance, with overall Group new business up 15 per cent. Our diversified business model has generated broad based growth across our markets. Our sales in Asia were up nine per cent over last year and up 21 per cent excluding Taiwan. We have seen continued growth in the US up three per cent and our UK business has delivered a strong year to date performance, with Retail up 14 per cent and the UK in total up 38 per cent. Our asset management businesses have benefited from a flight to quality, with M&G recording net inflows of £4.1 billion and our Asian asset management business net inflows of £1.0 billion.
"This is a very good overall result and we are well positioned to continue to achieve profitable market share growth, outperforming our competition, even in these very challenging markets.
"Our capital position remains robust and our prudent and proactive risk management approaches to capital management will allow us to withstand significant shocks should the need arise. In particular our Insurance Group's Directive (IGD) capital surplus of £1.2 billion at 30 September 2008 (30 June 2008 - £1.4 billion) is sufficient for us to remain resilient to a significant further deterioration in both market and economic conditions. The Group's liquidity position also remains very comfortable.
"Asian markets have suffered in the short term in the wake of the global financial turmoil and the unique circumstances surrounding AIG. This means that we are unlikely to achieve our goal of doubling 2005 new business profit a year early in 2008. It remains our expectation that this will be achieved in 2009, assuming a return to more normal market conditions during the year.
"Looking beyond these immediate events, Asia is the only region in the world that is expected to record high single digit economic growth rates in both 2008 and 2009. This, combined with the strong growth of intraregional trade, ongoing development of domestic consumer markets and the very low penetration of financial products, means we remain highly positive about the medium to long term prospects for Asia and our prime position in the region. In this context, we are of course monitoring closely AIG's disposal programme and considering what, if any, opportunities may arise that would create additional value for our shareholders.
"Looking forward we fully expect global financial market conditions to remain highly challenging for some time. However, our retirement-led strategy underpinned by our diversified geographic presence and product capability together with strong brand recognition ensures that we remain very well positioned to outperform over the market cycle."