Prudential's profits up despite market conditions

Prudential says it has increased operating profits and sales amid tough market conditions.

Prudential says it has increased operating profits and sales amid tough market conditions.

Operating profits for 2001 rose by 15% to stg£1.19 billion, up from stg£1 billion previously.

Total insurance and investment sales added up to stg£21.5 billion, up 54% on 2000.

Chief executive Mr Jonathan Bloomer says 2001 was a "real success" from an operating profit point of view, and was an exceptional year for sales.

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He says: "This performance was particularly pleasing because it was achieved against a backdrop of tough market conditions for many areas of our business."

Mr Bloomer says the overall group results "reflect the fact that Prudential is a financially strong company with outstanding businesses and a broad international base".

More than 60% of the group's sales and new business profits come from outside the UK.

The group says there was strong investment performance at its UK and European fund management business M&G; while Egg, the internet bank in which it owns a 79% stake, broke even in the fourth quarter as planned.

Prudential's bottom-line pre-tax figures showed a loss of stg£455 million, compared with a profit of stg£728 million in 2000. It was hit by a stg£1.4 billion adjustment for short-term fluctuations in investment returns.

PA