Asia fuels record operating profit for UK's Prudential

Prudential has reported record group IFRS operating profit of £4.2bn supported by double-digit growth in Asia. Prudential recorded these figures in a year that has seen continued low interest rates, market volatility and dramatic political change. Prudential Group CEO Mike Wells said in a statement, “Our performance has been driven by Asia, which has delivered a seventh consecutive year of double-digit growth in new business profit, IFRS operating profit and capital generation. In the fourth quarter of 2016, quarterly APE sales in Asia exceeded GBP1 billion for the first time, with eight of our markets in the region growing by more than 20%. For the full year, our new business profit in this region increased by 22% to GBP2,030 million, IFRS operating profit was 15% higher at GBP1,644 million and free surplus generation 15% to GBP859 million.” The US life insurance market contributed the most IFRS operating profit of £2bn, an increase of 8% at constant exchange rates. Wells added that in Asia, increasing numbers of middle-class consumers require the group's health and protection products with ageing populations in the UK and the US seeking ways to invest their savings to produce secure income for retirement. Wells said of the growing Asian market, “Three-quarters of China’s total population is forecast to be defined as middle income by 2030. The growing purchasing power of this section of the society is evident today. To illustrate, 60 million people left China for leisure travel purposes in 2011, but by last year this had doubled to 120 million and by 2020 is expected to top 200 million. Similarly last year Asian consumers bought around half of all the cars sold in the world, up from an average of less than 20% during the 1990s.”