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(Sharecast News) - Prudential described a robust first-quarter performance in an update on Tuesday, with new business profit increasing by 11%, reaching $810m across diverse geographical markets.
When factoring in economic impacts, the Asia-focussed form said new business profit remained stable at $726.
APE sales for the quarter saw a notable uptick of 7% to $1,625m, reflecting continued momentum despite challenges in specific markets such as Hong Kong, CPL, and Vietnam.
In Hong Kong, Prudential maintained its emphasis on quality growth, achieving a 1% increase in total APE sales.
Notably, both domestic and Chinese mainland visitor segments contributed to the growth, with new business margins also improving year-on-year.
Despite a 17% year-on-year decline in APE sales for CITIC Prudential Life (CPL), efforts to optimise product offerings resulted in increased new business margins.
Similarly, Singapore saw a third consecutive quarter of APE sales growth, coupled with improved new business margins.
Malaysia's APE growth surged by 29%, primarily driven by a significant increase in bancassurance sales and strengthened bank partnerships.
However, Indonesia experienced a 10% decrease in APE sales due to regulatory actions, though bancassurance sales saw substantial growth.
The company's 'growth markets and other' segment demonstrated a strong 28% increase in APE sales, driven by markets such as Thailand, Taiwan, India, and Africa.
Despite margin declines due to business mix effects, overall new business profit increased due to substantial sales growth.
Eastspring, Prudential's asset management arm, saw growth in funds under management or advice, reaching $239bn by the end of March.
Strong net inflows from the insurance business, along with third-party inflows, contributed to this achievement.
"Against a strong prior period comparator that reflects our outperformance in the first quarter of 2023 when the border between Hong Kong and the Chinese mainland reopened, I am pleased the group has delivered new business profit growth of 11%, excluding economic impacts," said chief executive Anil Wadhwani.
"Our continued focus on the quality of business written is reflected in new business profit - excluding economic impacts - growing more than APE sales.
Our total APE sales have grown sequentially each quarter since the third quarter of 2023, reflecting resilient consumer demand across Asia and demonstrating the strength of our multi-market and multi-channel distribution model."
Wadhwani said the company believed that provided a "sound base" for continued 2024 new business growth.
"Given the relentless execution focus in implementing our strategy, we are increasingly confident in achieving our 2027 financial and strategic objectives.
"We remain focused on accelerating value creation for our shareholders and we expect to provide an update on our capital management plans by half-year 2024 results."
Reporting by Josh White for Sharecast.com.