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Kamis, 10 Maret 2022 17:16:00

Prudential Plc Full Year 2021 Results

Prudential Delivers Continued Operational Progress and Completes Strategic Re-Positioning

HONG KONG SAR - 9 March 2022 -

Performance highlights for the continuing business1 on a constant (and actual) exchange rate basis2

APE sales3 up 8 per cent (10 per cent) to $4,194 million

New business profit4 up by 13 per cent (15 per cent) to $2,526 million

Strategic re-positioning to Asia and Africa completed

Adjusted operating profit5 from continuing operations up 16 per cent (17 per cent) to $3,233 million

Second interim ordinary dividend of 11.86 cents per share, 17.23 cents per share for the full year

Mike Wells, Group Chief Executive of Prudential plc, said: "Prudential has delivered high-quality, resilient growth as we completed the strategic re-positioning of our business to focus solely on Asia and Africa. We have continued to deliver for our customers against the backdrop of the Covid-19 pandemic, and I would like to record my deep gratitude to our staff and agents for their outstanding efforts. We have announced that I will retire from my role at the end of March 2022. I am grateful to have had the opportunity to work with the staff and Board of Prudential, and look forward to watching the Group's further success.

"Our digitally enabled, multi-channel and geographically diversified business enabled us to increase APE sales3 by 8 per cent6 and deliver growth6 in 10 of our 14 insurance markets7, despite the obvious challenges of Covid-19. New business levels in Hong Kong remained impacted by the continuing Mainland China border closure. Excluding Hong Kong, 2021 APE sales grew by 16 per cent6 driven by our businesses in Mainland China, India, Malaysia, the Philippines, Singapore and Thailand. We delivered 13 per cent6 growth in Group new business profit4 through an improvement in business mix, and therefore margin, and the growth in new sales.

"The Group's high-quality business, based on regular-premium income, focus on health and protection, and high levels of customer retention, supports resilient, compounding growth. This enabled the Group's life businesses to deliver adjusted operating profit5 growth of 8 per cent6 despite higher Covid-19-related claims, with seven of our 14 life markets generating double-digit6 adjusted operating profit5 growth. Eastspring's adjusted operating profit was up 10 per cent6, with its funds under management reaching $258.5 billion, with continued inflows from the Group's life businesses. Collectively our life and asset management businesses delivered 8 per cent6 growth in adjusted operating profit5 and 7 per cent6 growth in operating free surplus generation8. After delivery of the planned central cost savings, total Group adjusted operating profit for the continuing business was up 16 per cent6.

"We continue to invest for the long term in new products, additional distribution capabilities and enhanced digital capabilities, to build our presence as a leading agency and bancassurance player and to access new pools of customers. Our product and other initiatives helped attract over 2.5 million customers in 2021 who were not existing policyholders of Prudential, contributing to an increase in our total life customer base to 18.6 million (2020: 17.4 million excluding Jackson). New business policies sold to both new and existing customers rose 16 per cent to 3.9 million and included 109,000 policies which were sold direct to the consumer through digital systems, including Pulse. These new policies included 2.2 million health and protection cases, reflecting our customers' increased focus on this area in light of the pandemic.

"We have completed the strategic re-positioning of our business into one focused entirely on Asia and Africa. In the fourth quarter, we carried out a successful $2.4 billion9 equity raise in Hong Kong. In December 2021 and January 2022 cash from this issuance was deployed in deleveraging our balance sheet in a $2.25 billion debt reduction programme. These actions, together with the associated reduction in interest costs, have enhanced our financial flexibility in light of the breadth of opportunities to invest for growth in Asia and Africa.

"We enter 2022 with a strong balance sheet and capital position. The timing of the opening of the Hong Kong border remains uncertain and Covid-19 will continue to have an impact. The current conflict in Ukraine could have wider implications for global economic and market conditions as well as geopolitical relations. However, we believe our multi-channel approach and focus on quality business and operating efficiency is the right strategy for dealing with volatile operating conditions. We are confident that our investment in new business, distribution and product enhancements will continue to meet the needs of our customers and build value for our shareholders over the long term."