Prudential plc posted 2015 full year results. IFRS operating profit was £4,007 million, up 22 percent.
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CEO Mike Wells said: "We have delivered a strong performance in 2015. We continue to grow across our key metrics despite the macroeconomic uncertainty and the challenges presented by low long-term interest rates.
"IFRS operating profit increased 22 percent to £4,007 million and EEV new business profit grew 20 percent to £2,617 million. The Group’s underlying free surplus generation increased by 15 percent to £3,050 million and cash remittances from business units were up 10 percent to £1,625 million.
"These results represent good progress towards the 2017 growth and cash objectives, which we set out at the December 2013 investor conference in London.
"In Asia, our portfolio of businesses remains focused on serving the protection and investment needs of the growing middle classes in the region through a high-quality agency force and well-established bank partnerships.
"Our life and asset management businesses delivered a combined IFRS operating profit of £1,324 million, up 17 percent.
"Life APE sales were 26 percent higher at £2,853 million and generated a 28 percent increase in EEV new business profit to £1,490 million. Despite this strong sales performance, our focus on growth and cash in the region also saw underlying free surplus generation rise 16 percent to £673 million.
"Eastspring, our Asian asset management business, achieved record third-party net inflows of £6.0 billion, driving it’s total funds under management to a new high of £89.1 billion.
"In the US, we continue to meet the needs of the ‘baby-boomer’ generation transitioning into retirement. Jackson’s disciplined execution delivered good returns to our shareholders, with life IFRS operating profit up 10 percent to £1,691 million and cash remittances to Group 13 percent higher to a record £470 million.
"Our success in capturing strong variable annuity inflows at attractive margins drove our separate account asset base up 5 percent1 to £91.0 billion.
"In the UK, our life business delivered a 60 percent2 increase in IFRS operating profit to £1,167 million, reflecting continued pro-active management of our in-force book.
"This result includes £339 million from specific management actions undertaken in the second half to position the balance sheet more efficiently under the new Solvency II regime, which are not expected to recur going forward.
"Against a backdrop of unprecedented change brought about by pension reforms, we delivered a 23 percent increase in life APE sales to £1,025 million and drove new business profit up 23 percent to £318 million.
"After a period of exceptional growth, M&G had a more challenging year with retail net outflows more than offsetting positive flows from institutional new business. As a result total funds under management declined by 7 percent to £246.1 billion
"Despite this, IFRS operating profit of £442 million was broadly in line with last year reflecting actions on costs and cash remittances were 6 percent higher at £302 million." ■