Prudential strength in Asia offset by weak UK, US markets

Prudential reported a drop in first-quarter new business profit Wednesday to £496m from £526m in the same period last year.

Although new business profit for Asia increased to £309m from £243m, it was a very different story elsewhere. New business profit in UK retail fell to £34m from £38m, with no UK wholesale new business profit, compared with £50m in the first quarter of last year. In the US, new business profit fell to £153m from £195m.

Annual premium equivalent sales increased to £1.25m from £1.17bn, benefiting from growth in Asia and UK retail.

“This performance demonstrates our continued execution of a clear, consistent and successful strategy centred on Asia,” said outgoing group chief executive Tidjane Thiam.

"In Asia, we remain focused on profitably meeting the investment and protection needs of a growing and increasingly prosperous middle class,” he said. "In the mature US and UK markets, we have continued to prioritise value over volume and maintained our focus on delivering good value to our customers and shareholders."

Thiam is leaving the company to join Swiss banking giant Creidt Suisse after six years in charge at the UK's largest insurer. He will be replaced by Mike Wells, who currently heads Prudential's US business, Jackson National Life. Wells will take over on 1 June.