Prudential Plc announces full-year results
Meanwhile, its APE sales, a measure of new business activity comprising the aggregate of annualised regular premiums and one-tenth of single premiums on new business written during the year for all insurance products, increased by 8% on a CER basis and 10% on an AER basis to US$4,194 million for FY21.
Focusing on shares, Prudential reported a second interim ordinary dividend of 11.86 cents per share and 17.23 cents per share for the full year.
Prudential group chief executive Mike Wells, who will retire from his role after serving as the CEO since 2015, said the latest figures reflected Prudential’s successful delivery of high-quality, resilient growth as it completed its strategic repositioning in Asia and Africa, as well as excellent customer service despite the impacts of the COVID-19 pandemic.
“The group’s high-quality business, based on regular-premium income, focus on health and protection, and high levels of customer retention, supports resilient, compounding growth. This enabled the group’s life businesses to deliver adjusted operating profit growth of 8% despite higher COVID-19-related claims, with seven of our 14 life markets generating double-digit adjusted operating profit growth,” Wells said.
“We continue to invest for the long term in new products, additional distribution capabilities, and enhanced digital capabilities to build our presence as a leading agency and bancassurance player and to access new pools of customers. Our product and other initiatives helped attract over 2.5 million customers in 2021 who were not existing policyholders of Prudential, contributing to an increase in our total life customer base to 18.6 million (2020: 17.4 million excluding Jackson).”
Based on its full-year FY21 results, Prudential entered 2022 with a strong balance sheet and capital position, Wells suggested. However, with the timing of Hong Kong border’s opening remaining uncertain, COVID-19 will continue to impact the insurance industry, and the conflict in Ukraine could have wider implications for global economic and market conditions and geopolitical relations.
Nevertheless, Prudential is confident that its multi-channel approach is the right strategy for dealing with volatile operating conditions.
“I would like to record my deep gratitude to our staff and agents for their outstanding efforts,” Wells added. “I am grateful to have had the opportunity to work with the staff and board of Prudential and look forward to watching the group’s further success.
“We are confident that our investment in new business, distribution, and product enhancements will continue to meet the needs of our customers and build value for our shareholders over the long term.”
