Pru chief says firm will benefit from ‘flight to quality’
Prudential will benefit from a flight to quality brands in the UK as uncertain retirees look to well-known businesses, Rob Devey has claimed.
Mr Devey, chief executive of Prudential UK said the firm did not see too much profit growth in its home market, but was committed to remaining.
He said: “We have a high penetration in the UK. It is a mature and developed market. We need to recognise that and develop our businesses to suit this trend.
“We are helped by our specific area of focus being in retirement. We have a good footprint in annuities and with-profits.
“What we also see is that even if there is not that much new money, in a volatile environment there is a flock to quality. Firms such as the Pru do better in these circumstances.”
It comes as Prudential reported operating profit in the UK of £353m, the same as in 2011.
Its new business profit was £152m, up from £146m in 2011.
Prudential UK’s investment division, M&G, reported a net investment inflow increase of 53 per cent to £4.3bn.
Tidjane Thiam, group chief executive of Prudential, said profits were driven by growth in Asia, where operating profits was up 26 per cent to £409m.