Prudential Profit Climbs 7% on Strong U.S. Sales

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Aug. 12 (Bloomberg) -- Bloomberg’s Mark Barton breaks down first-half results for Prudential Plc. As the insurer reported a 7 percent increase in profit, led by sales in the United States. He speaks on “The Pulse.”

Good morning.

What do you see so far from prudential?

They are reporting profits for the first time in a month.

The company split into it asia, u.s., europe head and asset management business -- u.k. and asset management business.

The u.k. life business profit up of high temperature and.

The mmg -- profit up by 10%. the fear going into these numbers was asia.

That was going to be one of the sticking points.

The u.k. business under pressure because of new rules.

Anything on asia so far?

Not yet.

The operating profit is double digits.

I will dig deeper but asia is the golden goose.

Half of its revenue comes from asia.

The heart of prospects for the company.

He said to us in march, the ceo, the pie grows faster than our ability to eat it.

He also mooted the idea of spinning off the asian division.

The company has enough cash within asia to fund itself.

The new asia is africa.

The company wants to push into markets like nigeria and kenya.

That is for its second leg of growth after asia.

He says the country store, the city-bi-city story.

He says africa is like asia in the 1990's. we rose asia in the wave of urbanization.

In africa, the same forces are at play.

From what i can see, it looks like asia has done ok but i will dig a little bit deeper.

Coming back to the u.k. annuities, george osborne said retirees do not have to buy a new annuities anymore.

Annuities are down by 43% because of the george osborne announcement.

But the likes of prudential.

Have other options they have balkan annuities at companies.

When we spoke to the ceo, he said we are growing in the u.s., in europe.

We can easily combat the decline.

Sales of u.k. annuities fell by 40% in the second quarter.

U.k. annuities ad prudential fell by 43% in the first half.

But they have other businesses to combat the decline in an annuity sales.

But 17% rise in operating costs, it looks ok.

It looks like the stock is responding affirmatively.

Let's get to some other company news stories.

Shares of tata motors rose.

Sales of jaguar and land rover

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change