Prudential PLC Says Demerger on Track, Reports Rising New-Business Profit

By Adam Clark

Prudential PLC (PRU.LN) said Wednesday that the ongoing demerger of its U.K. and European business unit is on track and reported sales growth across its units.

The FTSE 100 insurance and asset-management business said it is continuing to make good progress on demerging M&G Prudential but gave no details of a timeline for the split. The demerger was originally announced in March.

Prudential said over the first nine months of 2018 its life-insurance new-business profit rose 17%, or 12% on an actual exchange-rate basis.

In Asia, Prudential said its new-business profit increased by 15% to 1.76 billion pounds ($2.28 billion) compared with the same period in 2017, driven by its health-and-protection business. In its Eastspring asset-management business in the region, total funds under management rose to GBP149.2 billion as of Sept. 30 from GBP138.9 billion at the end of 2017.

In the U.S., Prudential said new-business profit for its Jackson business rose 22% to GBP716 million over the nine-month period. In the U.K. and Europe, M&G Prudential increased its new-business profit by 18% to GBP277 million. Funds under management fell to GBP334.4 billion from GBP350.7 billion at the start of the year, including the redemption of a single large institutional mandate.

The company's Solvency II surplus, a key measure of balance sheet strength, stood at GBP14.1 billion as of Sept. 30, equivalent to a cover ratio of 205%. The company said it remains well-placed for long-term growth.

Write to Adam Clark at [e-mail]; @AdamDowJones

(END) Dow Jones Newswires

November 14, 2018 02:42 ET (07:42 GMT)

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