Prudential posts 17 pct jump in H1 operating profit

This is the insurer’s first earnings update since Mike Wells took over as chief executive officer. That compares with the 1.74 billion-pound average estimate of 19 analysts provided by the company.

Mr Wells said he expects to see more mergers and acquisitions in the insurance industry, following several billion-pound deals including Aviva’s takeover of Friends Life and Zurich’s interest in RSA.

The company raised its first-half dividend 10 percent to 12.31 pence a share.

Operating profit in its core growth market of Asia for life insurance and asset management also rose 17 percent to 632 million pounds, while its U.S. unit, Jackson Life, saw an 11 percent increase to 834 million pounds.

Wells, who moved to London from Nashville to take the top role, encouraged the heads of his Asian and UK units to answer questions from reporters to demonstrate the company’s broad management strength. Commenting of the results, Prudential said it remains focused on “serving the protection and investment needs of the growing middle class in Asia, providing income in retirement to American baby boomers and meeting the financial needs of an ageing British population”.

After trading down 1.7 percent at its lows prior to the results announcement, shares in Prudential were up 2.4 percent at 1156 GMT in a 0.7 percent weaker FTSE 100.

New business profit for H1 2015 rose 12 per cent on a constant exchange rate basis to £1.19 billion, boosted by a 30 per cent increase in its Asian life business.

Prudential PLC [PRU.LN] has seen profits rise after strong performances in Asia and the UK this year. “Looking ahead, despite ongoing macro-economic uncertainties, we are confident that our proven strategy, strong execution and the quality of our people will continue to deliver great products and service to our 25 million customer”, he said”.