Prudential net plunges 73pc

Prudential (2378) saw its net profit for the first half this year plunge by 73 percent from a year ago to US$534 million (HK$4.17 billion) and said it plans to spin off its US business Jackson to focus on Asia and Africa. The British insurer declared an interim dividend of 5.37 US cents,...

Reuters and Stella Zhai

Wednesday, August 12, 2020

Prudential (2378) saw its net profit for the first half this year plunge by 73 percent from a year ago to US$534 million (HK$4.17 billion) and said it plans to spin off its US business Jackson to focus on Asia and Africa.
The British insurer declared an interim dividend of 5.37 US cents, representing one-third of the expected full-year dividend for 2020 under the group's new dividend policy, it said.
Operating profits slid 3 percent year-on-year to US$2.54 billion during the first six months, with that from Jackson's profit falling 19 percent to US$1.27 billion. Operating profits from Asia grew 12 percent to US$1.73 billion.
A minority initial public offering of Jackson is planned for the first half of 2021, with "full divestment over time," Prudential said.
Prudential recorded a new business value of US$353 million in Hong Kong during the first half this year, a 67 percent plunge from a year ago, with annual premium equivalent down 64 percent year-on-year to US$388 million, dragged down by the reduced visitor levels due to travel restrictions between the mainland and Hong Kong, it said.
Shares of the insurer grew 3.3 percent to HK$128.40 yesterday.