Chinaʼs growing middle class boosted Prudentialʼs new business profit in the first nine months, the British insurer said on Tuesday, though worries about its performance elsewhere weighed on its shares.
Prudential has been focusing on Asia, where consumers have been heavily under-insured. The region contributes slightly under one third of Prudentialʼs operating profit and a 24 percent rise in Asian new business profit in the first nine months came despite huge swings in Chinese stock markets.
"In Asia, we continue to target the huge opportunity offered by the growth of the middle class," CEO Mike Wells told reporters, noting that the size of Chinaʼs middle class now outstripped that of the U.S.
Overall, new business profit rose 13 percent in the first nine months of 2015 to 1.76 billion pounds ($2.7 billion), slightly beating a consensus forecast compiled by the company.
But new business profit at Prudentialʼs US business, Jackson, fell 4 percent and Wells said it was still looking at "bolt-on" acquisitions in the US.
M&G, Prudential's UK asset management business, had net outflows of 2.7 billion pounds in the third quarter as retail investors fretted about fixed income markets, Prudential said.
JP Morgan Cazenove analysts highlighted falling sales in Singapore, Malaysia and Indonesia, reiterating their neutral rating on the stock.
Mike Wells said the company was looking at internal and external candidates to replace UK and Europe Chief Executive Jackie Hunt.
New business profit for the UK rose 16 percent to 231 million pounds, helped by British pension reform which has prompted interest in a greater variety of savings products.
