UK insurer Prudential grows first-half profit

Operating profit climbed 7% to £1.52bn

Insurance giant Prudential posted a sharp rise in profits as it shrugged off changes to the UK pension market and boosted sales in the US and Asia. Photograph: Dominic Lipinski/PA Wire

Insurance giant Prudential posted a sharp rise in profits as it shrugged off changes to the UK pension market and boosted sales in the US and Asia. Photograph: Dominic Lipinski/PA Wire

Tue, Aug 12, 2014, 22:22

Prudential, the UK’s biggest insurer by market value, increased profit in the first half as US sales and corporate-pension deals helped offset a slump in annuities sold to British retirees.

Operating profit climbed 7 per cent to £1.52 billion (€1.91 billion), the insurer said. That was boosted by an 18 per cent jump in profit at US-based Jackson National Life and as the insurer completed four UK bulk annuity deals in the first six months. The shares rose.

About $6 billion was wiped off the market value of UK insurers in March after chancellor of exchequer George Osborne’s budget scrapped rules that pushed retirees to buy an annuity product. Legal and General and Aviva last week said they were focused on bulk annuities for firms after they too reported a slump in sales to retirees. -(Bloomberg)