Prudential Plc Q1 FY2022 earnings call

• Resilient results with APE sales up 9% and IFRS group operating profit up 8%.
• Multi-channel, digitally enhanced distribution platform and strong franchise across Asia and Africa where it's a Top 3 player in 11 Asian life markets.
• Management priorities around distribution, digital, business quality, and people, including expanding distribution channels, embedding digital in processes, maintaining business quality, and investing in people.
• Announcement of two new non-executive directors.
• Strong customer demand with index monthly sales up 13% in July and high intention to purchase insurance shown in Hong Kong border survey.

APE sales were up 9% to $2.2 billion, with APE sales in Southeast Asia and Greater China each at about $1 billion. New business profit was flat year-on-year excluding economic effects, and down 5% to $1.1 billion. IFRS group operating profit was up 8% to $1.7 billion. The product segments show diverse growth with a strong geographic footprint and multi-channel distribution contributing to these financials.

• Confident of continued growth due to strong customer demand and intact long-term structural growth drivers like urbanization, middle-class growth, and rising demand for health and protection.
• Believes in financial resilience and capital strength to meet growing health and saving needs of customers in Asia and Africa.

• Impact of higher interest rates affecting new business profit.
• Regulatory changes and market volatility that could affect business performance.
• Border restrictions impacting customer access and sales in certain regions like Macau and Hong Kong.

Q: Could you shed light on the operating environment for China business, trends in 1Q, 2Q, and July, and how to outgrow the industry?

A: In China, multi-channel distribution was key with strength in agency and bancassurance. Agency had improvements in productive agents, and bancassurance leveraged digital technology.

Q: What's the outlook for Indonesia's insurance business, especially with the new Sharia license?

A: Indonesia is an exciting market with a new Sharia business launched in April, strong Sharia market share, and efforts to upskill agency and expand product range, seeing encouraging signs in SME market.