Digital Assets in Capital Markets

Advanced course on digital assets - assets created using a blockchain/DLT network - designed for finance professionals.

IBF-STS
8 CACS CPD Hours

29 September 2022 (Thursday) | 9am-5pm

UK-based insurer Prudential Plc reported 1H adjusted operating profits of $1.57bn, up 6% YoY. The annual premium equivalent (APE) sales rose 6% YoY to $2.2bn on a diversified geographic footprint, product mix, and distribution channels. Four product categories, namely health & protection, participating contracts, non-participating savings, and investment-linked savings, contribute over 20% each to APE sales. China mainland arm CITIC Prudential Life’s (CPL) APE sales were up 13%, Taiwan rose 55%, Singapore rose 5%, Vietnam grew 19% and Africa was up 17%. New business profits fell 7% YoY to $1.1bn due to the impact of higher interest rates and differences in geographical and channel mix. The Group’s embedded value was $42.3bn as of June vs. 47.4bn in December 2021. Its Asian asset management business, Eastspring’s managed assets declined 12% YoY to $222bn on adverse markets and currencies. Cost to income ratio rose 300bp YoY to 55%. Prudential received $376mn from reducing its holding in Jackson Financial from 19.7% at the time of the demerger in 2021 to 9% as of August 2022. In H1, the interim dividend declared stood at $0.05/share vs. $0.17/share for the full year 2021. Prudential is expected to save $70mn in head office costs by the start of 2023 in addition to the $180mn saving by the demerger of the UK business. On a group minimum capital requirement basis, the group regulatory solvency ratio has increased to 548%, from 408% at the full year.

Prudential’s 3.625% 2032 was 1.52 points up at 94.95, yielding 4.27%.

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