Pru's earnings jump

July 26, 2001 Posted: 1229 GMT

LONDON (CNN) -- The UK's No. 2 insurer Prudential on Thursday posted a 16 percent rise in operating profits, as business grew in Britain and Asia.

Prudential, which recently lost a takeover battle for U.S. insurer American General, said operating profits before one-time items in the six months to June 30 rose to £677 million ($960 million) from £586 million a year ago.

On a per-share basis, the insurer's earnings rose to 23.4 pence a share from 21.3 pence a share in the same six months of 2000, at the top end of expectations

Prudential (PRU) shares rose 3 percent in London to 836 pence after the results were announced.

"We continue with our stated ambition for sustainable growth as we seek to expand the business by organic means, through joint ventures, and by acquisition," said Chief Executive Jonathan Bloomer, who analysts believe is still on the look out for a target across the Atlantic.

American International Group American International Group (AIG: Research, Estimates) won a takeover battle for American General (AGC: Research, Estimates) on May 11, scuttling an earlier deal inked by Prudential but which fell in value after Prudential's stock sank.

Prudential later won an agreed $600 million compensation from American General for terminating their takeover agreement.

In its earnings statement, Prudential said total sales rose by 43 per cent to £1.3 billion from £924 million, boosted by strong growth in Asia and the UK.

Profit from new business rose 8 percent to £342 million from £317 million.

Prudential said its Internet bank Egg and U.S. unit Jackson Federal increased retail assets by £900 million. Total funds under management at Prudential on June 30 were £168 billion.

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