The financial services group reported strong results for last year with significant contributions out of the US and Asia.

UK-listed Prudential plc, the insurance and financial services group operating in areas including wealth management, reported an operating profit on an IFRS basis of £4.007 billion ($5.7 billion) for 2015, a year-on-year rise of 22 per cent.

The firm said its Asia life and asset management IFRS operating profit was a significant contributor to group results, at £1.324 billion, a rise of 17 per cent. At its M&G fund management subsidiary, operating profit dipped 1 per cent to £442 million.

“In Asia, our portfolio of businesses remains focused on serving the protection and investment needs of the growing middle classes in the region through a high-quality agency force and well-established bank partnerships,” Mike Wells, group chief executive, said in a statement yesterday.

“Despite this strong [Asian] sales performance, our focus on growth and cash in the region also saw underlying free surplus generation rise 16 per cent to £673 million. Eastspring, our Asian asset management business, achieved record third-party net inflows of £6.0 billion, driving its total funds under management to a new high of £89.1 billion,” he continued. 

“In the US, we continue to meet the needs of the ‘baby-boomer’ generation transitioning into retirement. Jackson’s disciplined execution delivered good returns to our shareholders, with life IFRS operating profit up 10 per cent to £1,691 million and cash remittances to group 13 per cent higher to a record £470 million,” he said.

Prudential’s UK life business delivered a 60 per cent increase in IFRS operating profit to £1.167 billion, he said. That result included £339 million from specific management actions undertaken in the second half to position the balance sheet more efficiently under the new Solvency II regime, which are not expected to recur going forward. 

“After a period of exceptional growth, M&G had a more challenging year with retail net outflows more than offsetting positive flows from institutional new business. As a result total funds under management declined by 7 per cent to £246.1 billion. Despite this, IFRS operating profit of £442 million was broadly in line with last year reflecting actions on costs and cash remittances were 6 per cent higher at £302 million,” he added.