Prudential Sees Profit Spike On Baby Boomers
The Prudential has seen a 22% rise in its first-half operating profit, boosted by baby boomers in the United States and newcomers to the insurance market in Asia.
The insurance giant said operating profit came in at £1.415bn for the six months to June 30.
Buoyant investment returns and the longer-term trends of an ageing population needing more retirement income have supported the businesses.
Many investors have also favoured Prudential because of its diversification beyond European shores.
In the US, the Prudential said it continued to gain from the ageing baby-boomer generation.
Prudential chief executive Tidjane Thiam said: "We are well positioned to benefit from the transition into retirement of the 'baby-boomer' generation."
Its profit rose by almost a third after a rise in interest rates in the second quarter boosted its variable annuity business.
Meanwhile in Asia, where Prudential focuses on selling products to a growing middle class in South East Asia, operating profit jumped 18%.
Prudential said it saw record sales in seven of its local business units, with China up 42% and Philippines and Korea up 38%.
Funds under management at its M&G arm rose to £234.3bn, up from £203.7bn a year earlier.
Mr†Thiam added: "These results provide further evidence of our ability to deliver both earnings growth and cash.
"We are on track to achieve the remaining objectives of doubling Asia's 2009 new business profit by 2013 and delivering over £350m of net remittances from the UK by the end of the year."
In the UK, growth was more subdued, with operating profit up 1% at £341m.
Shares in Prudential, which have gained 47% over the past 12 months, were up 3.5% in late Monday trading.