Prudential Share Price Fell 2% As Nine-Month APE Revenues Rose

The Prudential plc (LON: PRU) share price fell 2% after the life insurance giant released its financial performance results for the nine months to 30 September 2023. The company noted that its annual premium equivalent (APE) sales were up 40% during the first nine months of September, at $4.4 billion.

The growth was driven by resilient demand from Asia, especially its Hong Kong unit, as consumer sales to domestic customers and those from the Chinese mainland remained high. However, sales in the third quarter were slightly lower than the 42% growth in the year’s first half. 

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Consumer demand in Asia demonstrated remarkable resilience, with continued interest in savings, health, and protection products. Additionally, several of Prudential’s businesses in the ASEAN5 region have experienced impressive double-digit growth in new business profits during the first nine months of 2023. 

From January to September, Prudential achieved a 37% increase in new business profit, amounting to $2.1 billion. While this growth rate was slightly lower than the 39% increase reported at the midway point of 2023, it still reflects strong performance.

In the Chinese mainland market, the company observed industry-wide changes in product offerings and bancassurance distribution regulations. The firm’s proactive approach to diversifying its product portfolio is causing some disruptions in sales. 

However, these changes are expected to be beneficial over the long term as they will enhance the role of insurance in meeting customer needs and create sustained demand for long-term savings, health, and protection products.

Prudential’s primary focus remains on executing its recently unveiled five-year strategy aimed at improving operational efficiency and boosting the productivity of its agency and bank distribution channels. 

The company is dedicated to strengthening its core capabilities across its strategic pillars of  Customer, Distribution, and Health while leveraging technology to enhance customer and distribution experiences. 

Anil Wadhwani, Prudential’s CEO, said: “The new business momentum we saw in the first half of 2023 continued in the third quarter. The strength of our distribution capabilities and the diversification of the business across markets, products and channels drove our performance in the nine months to 30 September 2023, with fifteen of our life markets across Asia and Africa delivering double-digit growth in new business profit.”

Prudential share price. 

The Prudential share price fell 2.04% to trade at 877.3p from Friday’s closing price of 895.6p.