Prudential's profits driven by rapid growth in China and Hong Kong | City & Business | Finance | Express.co.uk

Prudential make record profits due to rapid Asia growthDEMAND for health and protection products across Asia’s fast-growing and increasingly affluent middle-class helped Prudential make a

record annual operating profit of £4.26billion, up 7 per cent on the previous year. By David Shand 08:29, Wed, Mar 15, 2017 | UPDATED: 08:48, Wed, Mar 15, 2017 Share Article Share Article

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Mainland China and Hong Kong led the way with income growth of 83 per cent and 40 per cent respectively as operating profit from the insurance giant’s Asian businesses grew 15 per cent to

£1.64billion. 

An 8 per cent rise in US life insurance profit to just over £2billion helped to offset a 31 per cent drop in UK profit to £828million as “the Pru” scaled back its participation in the

annuity market and also took a £175million charge for a review of past annuity sales practices and potential compensation after a regulatory review of the products. 

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Profits at the Pru’s UK-based asset manager M&G were down 4 per cent to £425million as investors withdrew funds, but assets under management grew by 8 per cent to £136.8billion due to

positive investment markets. 

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China is misread by the West: Prudential CEO GETTY

Mike Wells said the increasing middle-class in Asia is driving Prudential sales The region’s consumer spending growth is remarkable

Mike Wells, Pru CEO

Pru’s chief executive Mike Wells said he saw no need for M&G to make acquisitions to boost its competitiveness, despite a wave of consolidation including the proposed £11billion merger of

Standard Life and Aberdeen Asset Management. 

He said: “Our performance has been driven by Asia, where growing numbers of middle-class consumers increasingly require our health and protection products. 

"The region’s consumer spending growth is remarkable, but what is closest to the hearts of people in Asia, as is true anywhere else, is providing a secure and more prosperous future for

their loved ones. 

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“This is creating a powerful, and largely unmet, demand for the products we provide.” 

Shares rose 50½p to a two-year high of 1715p. It is increasing its dividends by 12 per cent.