Prudential
Prudential saw an increase in revenues and profitability as Asian markets boosted earnings.

Multinational life insurance and financial services corporation Prudential Plc, the biggest insurer in the United Kingdom, gained a six percent increase in revenues due to its booming insurance business in Asia.

Prudential’s shares increased to nearly a four-month peak. The company disclosed an operating profit of £2.06 billion or $2.69 billion during the 1st half of 2016 which beat the £1.88 billion average forecast made by 18 analysts. The Asian market boosted profits 15 percent to £743 million while dividends increased five percent to 12.93 pence per share.  Sales in Hong Kong also rose 58 percent.

New life insurance plans sold in the whole of Asia reached £1.66 billion for the 1st half of the current year which is up 21 percent. This is more than the total amount of insurance sold by the company in the United States and Britain.

Prudential Plc performed better compared to its major competitor, Legal & General Group Plc as well as Aviva Plc. Other insurance companies have declined but Prudential Plc remains up around four percent since June 23 and shares traded at 1,412 pence on the London stock exchange.

The company’s domestic retail unit posted a 51 percent increase in new sales to £593 million with an eight percent climb in operating profit because of large demand for the PruFund plan as more and more Britons are saving for their retirement.

The breakthrough was enough to make up for the company’s withdrawal from bulk annuities or traditional policies which have become burdensome for clients under the Solvency II Directive 2009 (European Union Law on insurance regulation) or capital rules for insurance providers.

Chief executive officer Mike Wells said they are able to deal with the repercussions of market instability in the UK and US because of the twin-digit growth in their Asian market.

Nevertheless, Prudential has not been spared all the effects of Brexit after the company’s M & G investment unit was affected by nearly £7 billion worth of net outflows during the first six months of the year. This brought down the unit’s operating profit by 10 percent.