Prudential Plc, currently the UKs largest insurer by market value, posted today higher-than-expected profit over the first six months of the fiscal year. The upbeat results of the company were tied to the fact that its U.S.-based business helped offset a sales decline from individual annuities sold in the U.K.
Chief Executive Tidjane Thiam said in the statement that was cited by the Wall Street Journal: “We remain confident in our ability to produce profitable growth over the long term and continue to create value for our customers and shareholders.”
According to the insurers statement, the operating profit of the company increased by 7% and reached 1.52 billion pounds ($2.6 billion). Prudential Plc also shared that its profit increased by 17% on a constant currency basis.
In addition, the company revealed that its economic capital surplus, which is considered a measure of financial stability, increased by 5% from 3.9 billion pounds over the same period a year ago, and reached 4.1 billion pounds ($6.88 billion) over the first half of the year ended June 30th.
One of the analysts, who work at Panmure Gordon & Co. – Mr. Barrie Cornes commented on the Prudentials performance in an e-mailed report to customers, which was cited by Bloomberg: The insurers earnings were “ahead of expectations driven by strong performances in the U.S.” He added: “These results reinforce the strength of the Pru and the cautiously upbeat outlook statement adds impetus to buy the shares.”
At the same time, the Chief Executive Officer of the U.K.-based insurer Mr. Tidjane Thiam commented that Prudential Plc had missed a “great opportunity” when it comes to the acquisition of the Asian unit of AIG, which collapsed in 2010. As reported by the Financial Times, Mr. Thiam said: “Im still animated about it.”
Prudential Plc was 1.38% up to trade at 1,357.5 pence per share by 13:22 GMT. The price of the companys shares has risen 10.19% in the past year, valuing the company at 34.36 billion pounds. According to the information published on the Financial Times, the 20 analysts offering 12-month price targets for Prudential Plc have a median target of 1,582.5 pence, with a high estimate of 1,675 pence and a low estimate of 1,038 pence. The median estimate represents a 18.19% increase from the last price of 1,339 pence.
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