British insurer Prudential beat forecasts by reporting a 17% rise in annual profit, driving its share price higher despite it announcing the departure of CEO Mark Tucker.
Britain's largest insurer by market value reaffirmed its solid capital position today and unveiled new business profit rising 8%, fuelled by Asia growth.
Prudential also announced unexpectedly that its CEO Mark Tucker will step down at the end of September, to be replaced by chief financial officer Tidjane Thiam. Thiam was previously head of Aviva's European unit.
The company said its total operating profit was £2.96 billion sterling, on a European embedded value basis. That compares with £2.5 billion in 2007. Analysts had forecast an average operating profit of £2.56 billion.
On a statutory basis, Pru reported a 12% increase in underlying operating profit of £1.35 billion, compared to a consensus of £1.2 billion.
The group, which operates in the UK, US and Asia, increased its final dividend by 5% to 12.91 pence, bringing its full-year dividend to 18.90 pence.
This was delivered against a backdrop of a sharp economic downturn and credit crisis, which thwarted the financial sector, particularly in the second half of 2008.
Prudential repeated that it remains strongly capitalised, with a surplus of £1.7 billion to be lifted by a further £800m from the transfer of its Taiwan business to Taiwan's China Life.
It also confirmed that it has pulled out of the auction for the Asian business of troubled American insurer AIG, as global financial giants look to preserve cash and shore up their positions at home.
