Prudential plc - FY22 Results - Business Review

Rhea-AI Summary

Prudential PLC reported its full-year 2022 results, showcasing a 9% increase in APE sales totaling $4,393 million. However, new business profit decreased by 11% to $2,184 million. Adjusted operating profit rose by 8% to $3,375 million, with EEV operating profit up 15% to $3,952 million. Shareholders enjoyed a second interim dividend of 13.04 cents per share, leading to a total dividend of 18.78 cents, up 9%. The company is optimistic about 2023, with a 15% rise in APE sales reported for the first two months.

Positive

• APE sales increased by 9% to $4,393 million.
• Adjusted operating profit rose by 8% to $3,375 million.
• EEV operating profit increased by 15% to $3,952 million.
• Shareholder capital surplus is $15.6 billion, with a cover ratio of 307%.
• Second interim dividend of 13.04 cents per share, totaling 18.78 cents for the year, up 9%.

Negative

• New business profit decreased by 11% to $2,184 million.
• IFRS profit after tax dropped by 55% to $1,007 million.
• EEV shareholders' equity decreased from $47.4 billion in 2021 to $42.2 billion in 2022.

PRUDENTIAL PLC FULL YEAR 2022 RESULTS

A RESILIENT PERFORMANCE IN 2022, WELL POSITIONED FOR OPPORTUNITIES IN 2023 AND BEYOND

LONDON, UK / ACCESSWIRE / March 15, 2023 / Performance highlights for the continuing business on a constant (and actual) exchange rate basis¹

• APE sales² up 9 per cent (5 per cent) to $4,393 million with both agency and bancassurance channels delivering APE sales growth in the second half of 2022
• New business profit³ down (11) per cent ((14) per cent) to $2,184 million with the impact of higher volumes being offset by higher interest rates and business mix effects
• Adjusted operating profit⁴ up 8 per cent (4 per cent) to $3,375 million
• EEV operating profit⁵ up 15 per cent (12 per cent) to $3,952 million. EEV shareholders equity is $42.2 billion, equivalent to 1,534 cents per share
• GWS shareholder capital surplus over GPCR of $15.6 billion⁶, equivalent to a cover ratio of 307 per cent⁶ (2021: 320 per cent⁷)
• Operating free surplus generated⁸ from life and asset management business up 9 per cent (6 per cent) to $2,193 million
• Second interim dividend of 13.04 cents per share, 18.78 cents per share for the full year, up 9 per cent

"2022 was the first full year for the Group as an Asia and Africa focused business. We have delivered a resilient performance against a backdrop of Covid-19-related disruption and broader macroeconomic volatility. The results reflect the advantage of our diversified business model across the Asia region, highlighted by a balanced contribution to APE sales and new business profit from Hong Kong, the Chinese Mainland and Taiwan and from South-east Asia, including Singapore, Indonesia and Malaysia.

"The removal of the bulk of Covid-19-related restrictions across the region and the progressive opening up of the Chinese Mainland economy has meant that 2023 has started well with encouraging progress in year-on-year sales, with Group-wide APE sales for the two months ended February 2023 up 15 per cent⁹ over the prior year. In Hong Kong we have seen a gradual increase in cross-border traffic from the Chinese Mainland as travel restrictions are eased. Demand for savings products across the Hong Kong business is driving the increase in APE sales in the first two months of 2023.

"I'm honoured to have joined Prudential at such an exciting time with a tremendous opportunity for long term growth ahead of us. As we celebrate our 175th anniversary and 100 years of operations in Asia, the brand is as strong as ever, with leading market positions in many of our key markets. Our progress over recent years is a testament to our people, reflecting their talent and their commitment to serving our customers."

Anil Wadhwani

Chief Executive Officer

Summary financials	Full year 2022 $m	Full year 2021 $m	Change on AER basis1	Change on CER basis1
New business profit3	2,184	2,526	(14)%	(11)%
Operating free surplus generated8	2,193	2,071	6%	9%
Adjusted operating profit4	3,375	3,233	4%	8%
IFRS profit after tax10	1,007	2,214	(55)%	(53)%
	31 Dec 2022		31 Dec 2021
	Total	Per share	Total	Per share
EEV shareholders' equity	$42.2bn	1,534¢	$47.4bn	1,725¢
IFRS shareholders' equity	$17.0bn	617¢	$17.1bn	622¢

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http://www.rns-pdf.londonstockexchange.com/rns/9975S_1-2023-3-15.pdf

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SOURCE: Prudential PLC

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https://www.accesswire.com/743830/Prudential-plc--FY22-Results--Business-Review

FAQ

What were Prudential PLC's APE sales in 2022?

Prudential PLC reported APE sales of $4,393 million in 2022, a 9% increase.

How much did Prudential PLC's new business profit decline in 2022?

New business profit for Prudential PLC decreased by 11% to $2,184 million in 2022.

What was Prudential PLC's adjusted operating profit for 2022?

Prudential PLC's adjusted operating profit for 2022 was $3,375 million, an 8% increase.

What dividend did Prudential PLC declare for 2022?

Prudential PLC declared a total dividend of 18.78 cents per share for 2022, an increase of 9%.

What are the implications of Prudential PLC's financial results for investors?

Investors may see mixed signals, with APE sales growth but declines in new business profit and IFRS profit after tax.