Prudential’s first-quarter APE up 35%

Sales in its bancassurance business fell 4%.

Prudential’s first quarter annual premium equivalent (APE) grew 35% year-on-year (YoY) to $1.56b as heavy cross-border traffic between mainland China and stronger domestic demand in Hong Kong pushed growth.

“Ten out of the 13 life insurance markets in Asia, as well as Africa, achieved double-digit growth in new business profit. A key theme of our growth has been the success of new products as we continue to focus on meeting the diverse needs of our customers,” Prudential said.

Meanwhile, APE sales via the bancassurance channel inched down 4% despite a double-digit growth previously.

Total new business income for Prudential jumped 30% YoY as the new business margin was secure at 48%.

“Hong Kong APE sales to both domestic customers and Chinese Mainland visitors grew strongly, with sales to Chinese Mainland visitors restarting following the reopening of the border with Hong Kong,” said Prudential.

Hong Kong new business profit grew more than twice the previous year at 106% to $293m. APE sales were recorded at $455m, skyrocketing by 299%.

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“Hong Kong’s new business profit margin in the first quarter of 2023 of 64 per cent reflects a higher proportion of savings products in our sales mix than in the prior period. This effect was partially offset by the impact of lower interest rates at the end of the first quarter compared with the end of 2022,” Prudential stated.

About 32% of the total new business profit generated in the first quarter was contributed by Southeast Asian businesses. Where Indonesia carried on their fourth quarter 2022 performance towards the new year. Special mentions were Thailand and the Philippines, as both markets performed well.

“ICICI Prudential Life has continued to deliver growth in the first quarter, with double-digit broad-based growth in APE sales and new business profit. It also announced that it had met its objective of doubling its 2019 new business profit by 2023.” Prudential added.