Pru does the wise thing and ups divi on better profitsComments Off on Pru does the wise thing and ups divi on better profits
Prudential investors were pleased as punch after the Asian-focused insurer unveiled plans to bolster its dividend thanks to a chunky rise in new business profits.
Pru shares rose 1.5%, bucking the trend which saw rivals such as Legal & General, Standard Life and Aviva all trading down.
The Pru, led by Mike Wells, will grow its ordinary payout by 5% a year, underlining its confidence in future sales patterns of insurance to the burgeoning middle class in places such as China.
Group new business profits for the nine months ending September were £1.97 billion, up 19% on last year, led by a surge in profits from Asian sales of health and protection products.
The company’s City-based fund-management arm, M&G, also showed tentative signs of recovery under new chief executive Anne Richards despite customers still yanking their cash from its funds.
Outflows slowed to £1.1 billion, better than the £2 billion pulled in the prior quarter and £4.1 billion lost in the first quarter of this year.