Prudential first half beats forecasts

Prudential this morning announced a fall in operating profits of eight per cent in the first six months of the year. The UK's biggest insurance group saw earnings of £1.25bn in the period, surpassing analysts' estimates for the half which were nearer £1.2bn.Chief executive Mark Tucker said of the numbers "These results demonstrate a continuing strong performance by the Prudential Group in what remain challenging market conditions."

The stronger than expected figures allowed the company to raise its half-year dividend by five per cent to 6.29 pence, in stark contrast to rivals Aviva and Legal & General who recently cut their pay-outs, by 31 per cent and 45 per cent respectively.

The figures were helped by stronger retail sales of its products in the US and the value of shares it holds being boosted by rises in global stock markets. And after selling its Taiwanese operations and selling £400m of bonds its financial position was improved, with a regulatory capital cushion of £3bn, up from £1.5bn at the end of last year.

Prudential is the last major insurer to announce its results and Tucker signed off on a high-note, with his last set of interim results. He leaves next month, to be replaced by chief financial officer Tidjane Thiam on October 1st. The stock market gave him a good send-off too, pushing shares in Prudential up in early trading. ·