Prudential’s new business sees 37% profit growth IN 9M23
It grew to $2.14b, year-to-date.
Prudential’s new business profit increased by 37% to $2.14b, in the nine months to September. This growth continued into the third quarter (Q3). Excluding economic impacts, new business profit increased by 48%, with improved margins attributed to positive developments in channel and geographic mix.
Year-to-date APE sales rose by 40% to $4.42b, driven by strong performance in Hong Kong.
Sales to both Chinese Mainland visitors and domestic customers increased compared to the same period last year.
Health and protection products contributed to 37% of the total new business profit.
APE sales through the agency channel increased by 81%, with new business profits up 62% compared to the previous year, despite interest rate movements.
APE sales through the bancassurance channel increased by 3%, primarily due to new products and bank partners in Taiwan, improved performance in Malaysia, and the success of multi-currency savings products in Hong Kong.
However, sales through the Chinese Mainland bancassurance channel faced headwinds, and consumer sentiment in Vietnam declined.
APE sales to Chinese Mainland visitors were approximately 1.3 times higher than in 2019. Health and protection sales contributed significantly to new business profit, with growth in both the agency and bancassurance channels. New business margins improved in each quarter of 2023, excluding economic effects.
In the Chinese Mainland, proactive measures to diversify the product mix and anticipated regulatory changes led to a decline in APE sales at CITIC Prudential Life (CPL) during the first nine months, especially in the third quarter due to revisions in products required by regulatory changes.
However, new business profit in the agency channel grew, offset by a decline in the bancassurance channel. Both channels saw improved new business margins in the third quarter, driven by a shift towards health and protection products.
Indonesia and Malaysia experienced continued momentum in APE sales and new business profits.
In Indonesia, the impact of product repricing and upgrades seen in the first half of 2023 moderated in the third quarter, but overall new business profit growth remained strong.
In Malaysia, actions to improve productivity led to consistent growth in productivity throughout the year.
In Singapore, APE sales increased year-on-year in the third quarter, supported by a rebound in the bancassurance channel.
Total new business profits for the first nine months were lower than the previous year due to the impact of higher interest rates in the first half.
In Vietnam, APE sales and new business profit declined more in the third quarter compared to the first half due to a decline in consumer sentiment across the industry. However, the business outperformed the market, increased market share, and maintained its leading position.
Both ICICI Prudential Life and Africa delivered double-digit growth in APE sales and new business profits in the first nine months of 2023 compared to the previous year.