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Prudential sales jump 27% in first five months of 2010

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Press Trust of India London
Last Updated : Jan 21 2013 | 3:13 AM IST

British insurer Prudential Plc has reported a 27 per cent jump in sales to 1.36 billion pounds for the first five months of 2010, helped by a strong showing in Asia and the US.

The good sales figures come at a time when Prudential's top management is under fire from some quarters over the company's failed $35.5 billion takeover bid for AIA Group, the Asian life insurance operations of US insurer AIG.

"Group-wide sales of 1,355 million pounds for the first five months of 2010 up 27 per cent... Strong performance in Asia, with sales up 33 per cent to 579 million pounds in first five months of 2010," Prudential said in a statement today.

In the year-ago period, the group's sales stood at 1.07 billion pounds.

Prudential reported record retail sales in the US and new businesses grew 41 per cent to 454 million pounds in the five months ended May, 2010.

"In Asia, APE (Annual Premium Earnings) new business sales were 579 million pounds, an increase of 33 per cent on the first five months of 2009...," the company said.

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"The business recorded its highest ever sales for the months of both April and May, achieving growth of 38 per cent over the same period last year and ahead of the 30 per cent growth reported in the first quarter," it added.

In India, Prudential has a life insurance joint venture with banking major ICICI Group.

Prudential Group CEO Tidjane Thiam said the entity's strong start in 2010 continued in April and May.

"Throughout the period of our proposed transaction with AIA, our businesses continued to perform strongly, particularly in Asia and the US," he noted.

Indicating robust growth, Prudential's sales in April and May were up 28 per cent compared to the year-ago period.

The company's annual shareholders meeting is scheduled for today, where discussions are expected to focus mainly on the failed AIA bid.

The AIA deal, which would have strengthened Prudential's presence in Asia, was called off due to price issues. Following objections from many shareholders, the British insurer revised its offer to around $30 billion, which was not acceptable to AIG.

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First Published: Jun 07 2010 | 6:30 PM IST

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