UK-based insurer Prudential Plc (PUK, PRU.L), in an interim statement for the third quarter, said Wednesday that total group insurance annual premium equivalent or APE sales decreased 9% from the same period last year, while Group-wide retail sales increased 10%. Prudential also said it named Nic Nicandrou as its chief financial officer and board director.
Total Group insurance APE sales during the third quarter decreased 9% from the corresponding period last year to GBP 700 million.
Group-wide retail sales for the quarter increased 10% to GBP 699 million. Retail sales were up 66% to GBP 249 million in the U.S. Asia sales grew 4% to GBP 293 million from the prior year, on actual exchange rates. According to the company, the third quarter of 2009 was the first quarter with positive year-on-year growth since the second quarter of 2008.
The company noted that comparative APE sales from Asia in 2009 and 2008 exclude the Taiwan agency business disposed of during the second quarter of 2009. U.K. retail APE sales during the quarter decreased 22% to GBP 157 million.
Prudential noted that CITIC-Prudential Life in China had a very encouraging third quarter with its share of new business up 44% at GBP 13 million compared to the prior-year quarter.
M&G's, an investment-led business, net inflows were GBP 2.5 billion, 47% higher than the same period last year. M&G's external funds under management at the end of the third quarter were GBP 66.2 billion, up 32% over the prior-year quarter as a result of strong inflows and the recent recovery in equity markets.
For the nine-month period, total Group Insurance APE declined 9% to GBP 2.02 million. Group-wide retail sales for the period were GBP 2.02 billion, 3% higher than the same period last year.
Retail insurance sales in Asia for the first nine months decreased 9% to GBP 846 million. "As a Group we remain well-positioned in the region, which we believe offers the best long-term profitable growth prospects," the company noted. Year-to-date new business in CITIC-Prudential Life in China is GBP 34 million, up 21% over the same period last year.
In the U.S., retail sales grew 51% to GBP 640 million on actual exchange rates. The company noted that Jackson has delivered the highest level of retail sales for the first nine months of the year in the company's history.
Retail sales in U.K. Declined 13% from last year to GBP 531 million. Total new business sales were down 28% at GBP 534 million, reflecting the large bulk annuity transaction executed in the third quarter of 2008. The company said its wholesale sales were held to minimum levels as it continued to focus on products with higher IRRs and shorter payback periods.
The company stated that year-to-date, the proportion of higher-margin and strategically important health and protection business remains at 29%.
Further, Prudential noted that M&G continues to deliver strong investment performance, with total net fund inflows of GBP 11.1 billion. External funds under management have increased to GBP 66.2 billion, up 41 per cent on the start of the year.
Tidjane Thiam, Group chief executive said, "I am pleased to report strong Group-wide new business in the third quarter with total retail sales of GBP699 million up 10 per cent over the same period last year. This performance demonstrates the effectiveness of our strategy in what remains a challenging and fragile economic environment."
"We believe that the economic environment will remain uncertain for a while. The Group has clearly demonstrated its strong defensive capabilities and is now well positioned to benefit from the next stage of the economic cycle," the company added.
Separately, Prudential said it named Nic Nicandrou as its chief financial officer and board director.
Nic joins Prudential from Aviva (AV.L), where he has worked for eleven years in a number of senior finance roles, most recently as Norwich Union Life, finance director and board member. Nic started his career at PriceWaterhouse Coopers, where he worked for ten years in both London and Paris, specializing in insurance and more general financial services.
PUK closed Tuesday's regular trading at $19.81 on the NYSE.
PRU.L is currently trading at 575.5 pence, down 35 pence or 5.73%, on a volume of 6.63 million shares.
For comments and feedback: editorial@rttnews.com