Prudential to Complete M&GPrudential Spinoff in 4Q; 1st Half Operating Profit +21%

By Ian Walker

Prudential PLC (PRU.LN) said Wednesday that it expects to complete the demerger of M&GPrudential in the fourth quarter of this year as it reported a 21% rise in operating profit for the first half.

The insurance-and-investment business added that preparations are complete for Prudential plc's move to group-wide supervision by the Hong Kong Insurance Authority.

Prudential made an operating profit from continuing operations--a key industry figure which strips out M&GPrudential--of 2.02 billion pounds ($2.44 billion) for the half year ended June 30 compared with GBP1.67 billion for the comparable period last year. Asia operating profit was up 14% while M&GPrudential's fell 6.7% to GBP687 million.

Group Solvency II surplus--a key measure of balance-sheet strength--was estimated at GBP16.7 billion, equivalent to a ratio of 222%, compared with GBP17.2 billion and a ratio of 232% at Dec. 31, 2018.

Gross premiums earned were GBP16.29 billion for the period, compared with GBP14.79 billion a year earlier. Net profit from continuing operations was GBP890 million compared with GBP1.27 billion.

The board has declared a dividend of 16.45 pence a share, up from 15.67 pence for the first half of 2018.

In March 2018, Prudential said that it would spinoff M&GPrudential, the international savings and investments business formed by the merger of asset manager M&G and Prudential's U.K. and Europe insurance operations.

M&GPrudential is lead by Chief Executive John Foley. It has also appointed Mike Evans as chairman.

Write to Ian Walker at [e-mail]; @IanWalk40289749

(END) Dow Jones Newswires

August 14, 2019 05:08 ET (09:08 GMT)

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