Pru Life UK grows 33% in 2011

Pru Life UK, the Philippine life insurance arm of London-based Prudential plc, posted a 33 per cent growth in 2011, propelled by a more active and larger sales force, and increased sales through brokers.

The Company’s Total Gross Premium Income in 2011 was PhP 10.4 billion, up from PhP 7.8 billion in 2010. Total Gross Premium Income is the premium income earned (first year, single and renewal years), gross of reinsurance, for the period.

“Our improved performance was brought about by recruiting more financial advisers and increased productivity. We recruited over 1,000 agents in 2011. Furthermore, there was significant growth in the business brought to us by brokers,” said Pru Life UK President and Chief Executive Officer Antonio De Rosas.

Mr. De Rosas also attributed the company’s continued growth to its aggressive recruitment strategy, training and coaching programs for financial advisers, and the launch of innovative products such as the Pru Link Exact Protector, a revamped version of one of Pru Life UK’s bestselling unit-linked or investment-linked products, the PruLink Exact Plus.

Southeast Asia – Prudential plc Group’s ‘sweet spot’

In its results statement, Prudential plc announced that for the first time, its Asian life insurance business became the “single largest contributor” to the Group International Financial Reporting Standards (IFRS)* operating profit, accounting for 34 per cent in 2011.

“Asian life insurance – excluding Taiwan – has grown from 12 per cent of Group IFRS operating profit in 2007 to 34 per cent in 2011. The nominal amount has nearly trebled in three years from £257 million to £709 million,” said Prudential plc Group Chief Executive Tidjane Thiam.

“The heart of our strategy remains Asia, where our positive momentum has been maintained in 2011, with total IFRS operating profit up 30 per cent and a cash remittance to the Group of £206 million. Asia is generating both growth and cash and our focus on the fast-growing markets of Southeast Asia continues to pay off,” he said. IFRS operating profit* is one of the benchmark profit measures for life insurance companies. It is determined on the basis of including longer-term investment returns.

Prudential plc, through Prudential Corporation Asia, has life insurance operations in Vietnam, Indonesia, Malaysia, Singapore, Philippines, India, Hong Kong, China, Taiwan, Thailand and Korea.

“Asia is a significant driver of growth for the Prudential Group, and is central to its long-term business strategy. Our commitment to superior delivery and innovation is crucial in generating these robust results, year after year,” said Prudential Corporation Asia Chief Executive Barry Stowe.

Strong results for the Prudential plc Group

For the first time, Group IFRS operating profit passed £2 billion, while European Embedded Value (EEV)** operating profit reached almost £4 billion. Also for the first time, more than £1 billion of cash has been remitted by the business units to the Group.

Throughout a challenging year dominated by the eurozone crisis and its impacts, the Prudential plc Group has maintained its strong capital position, with an estimated IGD surplus of £4 billion.

“As a Group, we have continued to grow across our key metrics of IFRS, new business profit and cash while maintaining a robust capital position. This performance has been achieved against both a more challenging global economy in 2011 and the demanding comparator of 2010, our best year ever until now. In line with our strategy of value optimisation and capital conservation, higher sales and higher profit in 2011 have been achieved while consuming less capital in both relative and absolute terms than in 2010,” said Mr. Thiam.

“In this uncertain macroeconomic environment, our clear strategy and the strength of our products and distribution – combined with our balanced portfolio of businesses and market-leading positions in Asia – mean we are well positioned to deliver continued relative outperformance in the medium-term,” he added.

Prudential plc’s operations span across the United States, United Kingdom, and Asia. Aside from life insurance, Prudential plc also has an asset management business.

-ends-

About Pru Life UK

Established in 1996, Pru Life UK is a subsidiary of Prudential plc, a United Kingdom-registered company. Pru Life UK and Prudential plc are not affiliated with Prudential Financial, Inc. (a US-registered company), Philippine Prudential Life Insurance Company, Prudentialife Plans, Inc. or Prudential Guarantee and Assurance, Inc. (all Philippine-registered companies).

Pru Life UK is a life insurance company and is not engaged in the business of selling pre-need plans.

* Issued by the International Accounting Standards Boards, the IFRS are the set of international accounting standards stating how particular types of transactions and other events should be accounted and reported in financial statements. The IFRS basis results form the basis of the Group's statutory financial results.

IFRS and EEV operation profits are stated after excluding the effect of short-term fluctuations in investment returns against long-term assumptions and the shareholders' share of actuarial and other gains and losses on defined benefit pension schemes.

**The supplementary EEV basis results have been prepared in accordance with the European Embedded Value principles issued by the CFO Forum of European Insurance Companies in May 2004 and expanded by the Additional Guidance on EEV disclosures published in October 2005. Where appropriate, the EEV basis results include the effects of IFRS. Period on period percentage increases are stated on an actual exchange rate basis.

Read More

Back to Top