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Prudential Plc releases full-year financial results

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Metric

2020 result

2019 result

Life new business profit from continuing operations

US$2.8 billion

US$4.4 billion

Operating free surplus generated from continuing operations

US$2.89 billion

US$2.86 billion

Adjusted operating profit from continuing operations

US$5.5 billion

US$5.3 billion

IFRS profit after tax from continuing operations

US$2.2 billion

US$1.95 billion

 

“With COVID-19 continuing to have a major impact on many of our markets, I would like to pay tribute to all my colleagues for their dedication,” stated Prudential group chief executive Mike Wells. “These efforts are reflected in our operational performance in Asia. Our agents and other distribution partners are employing virtual tools with ever-increasing confidence.

“APE (annual premium equivalent) sales in the second half of 2020 were 20% higher than in the first half of the year. Overall, Asia APE sales fell by 28% compared with 2019, largely as a result of a significant reduction in sales in Hong Kong, where the border with Mainland China was closed for much of 2020.”

Citing the uncertain times we’re in, Wells described the group’s Asia results as “a great achievement,” as well as evidence of the high value placed by customers on Prudential’s services.

Meanwhile, the group’s proposed demerger from its US business Jackson – which delivered a 13% increase in variable annuity sales in 2020 – is on track.

The CEO noted: “We are making good progress on the proposed separation of Jackson from the group. Committed term loan facilities are in place to ensure Jackson has certainty that its targeted level of debt will be in place at the time of the demerger, and we continue to expect to complete the demerger in the second quarter of 2021, subject to shareholder and regulatory approvals.”

Wells added that the split will complete Prudential’s “structural shift” from a diversified global group to a growth business focussed exclusively on what he called people’s “unmet” health, financial protection, and savings needs in Asia and Africa.

Prudential, meanwhile, is considering raising new equity of around US$2.5 billion to US$3 billion after it completes the Jackson demerger, to enhance financial flexibility.



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