Prudential Announces First-Half Profits

TEP – 14 August 2009

Britain's biggest insurer has announced a smaller-than-expected drop in profits for the first half of the year and increased its dividend

Prudential said underlying profits fell 8% to £1.25bn in the six months to June.

This exceeded analysts' expectations who had forecast a profit of £1.16bn, according to the company.

"These results demonstrate a continuing strong performance by the Prudential Group in what remain challenging market conditions," said outgoing chief executive Mark Tucker.

Improving fortunes at the Prudential has enabled it to raise its interim dividend 5% to 6.29p.

The insurer said its financial position was "very strong" due to a capital cushion of £3bn, up from £1.5bn at the end of 2008.