Prudential PLC Plans Full Separation of US Arm; 1st Half Net Profit More Than Halved

By Ian Walker

Prudential PLC said Tuesday that it plans a full separation of its U.S. arm in order to focus on growth opportunities in Asia and Africa, as it reported a more-than-halved net profit for the first half of the year.

The insurance-and-investment business said it will start with a minority IPO of the unit--which includes Jackson National Life Insurance Co. and asset-management firm PPM America Inc.--during the first half of next year, then a full divestment over time. In June, Prudential agreed to sell an 11.1% minority stake in the U.S. business to Athene Holding Ltd. for $500 million.

Prudential made an IFRS net profit from continuing operations of $512 million for the half year ended June 30 compared with $1.15 billion for the comparable period last year.

Adjusted operating profit--one of the company's preferred metrics which strips out exceptional and other one-off items--was $2.54 billion compared with $2.62 billion.

Group regulatory capital surplus--a key measure of balance-sheet strength--was estimated at $12.4 billion, equivalent to a ratio of 334% compared with a ratio of 309% at Dec. 31, 2019,

Gross premiums earned were $19.84 billion, compared with $21.08 billion a year earlier.

The board has declared a dividend of 5.37 cents a share and that based on current estimates it expects to pay a total dividend of 16.10 cents a share.

Shares in London at 0850 GMT were up 38.50 pence, or 3.1%, at 1270.50 pence.

Write to Ian Walker at [e-mail]

(END) Dow Jones Newswires

August 11, 2020 05:14 ET (09:14 GMT)

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