Prudential Sees 17% Rise in Profits Thanks to US and Asia

Prudential has posted a strong rise in profits on the back of its US and Asia businesses, weathering the storm of the UK's annuity rules shake-up.

The UK's biggest listed insurance group said that its operating profit was up by 17%, hitting £1.5bn (£2.5bn, €1.9bn) for the first half of 2014.

The results were driven by solid profits in its US business Jackson National Life, which saw earnings increase by 28% year on year, contributing £686m.

In addition Prudential's Asia life and asset management operations saw profit of £525m, up 19%.

Tidjane Thiam, group chief executive said that: "In the first half, fee income was up 24% to £764m, mostly as a result of the success of our US strategy, and insurance margin was up 23% to £680m, underlining our success in providing health and protection products in Asia."

UK Profit also took a jump as it rose by 10% to reach £374m despite "significant disruption in the UK life and pension market where annuities sales decreased markedly following the Budget announcement."

Shares in Prudential rose in value to 1,362.95p in early morning trading, as they increased by 1.79%