New Prudential boss set to lay out growth strategy

Prudential is set to unveil its latest trading performance next week as shareholders hope for a revival under its new boss.

The insurance giant has seen its shares drift slightly lower this year as it has been impacted by China’s faltering economy.

Prudential will report its half-year results to investors in an update on Wednesday August 30.

Shareholders will be looking for Prudential to shed light on trading progress amid a backdrop of a weaker-than-expected recovery in the Chinese economy.

In its previous update, demand for savings products was benefitting from the reopening of China and Hong Kong following pandemic-era restrictions.

Around 50% of the group’s projected new business comes from the region and it will, therefore, be key to the company’s trading outlook.

Matt Britzman, equity analyst at Hargreaves Lansdown, said: “Looking further ahead, the Asian business should benefit from long-term economic development in its markets, driving increased demand for Pru’s insurance products since in many cases, state-sponsored social security has never got off the ground.

“A focus on regular premium products like life and health insurance should hopefully make profits reasonably dependable although of course there are no guarantees.”

The results update comes after new chief executive officer Anil Wadhwani formally took over at the helm of the group in February.

Prudential has seen a significant shake-up in leadership over the past year, with its chief financial officer James Turner resigning in May after an investigation into a code of conduct matter relating to a recent recruitment showed he had fallen short of its standards.

The new bosses leading the company will face scrutiny from investors and analysts over how they plan to improve shareholder value.

Deutsche Bank’s Rhea Shah said Mr Wadhwani is expected to lay out a new strategy for Prudential on Wednesday.

She said the firm’s shares have underperformed compared with peers in recent months but she was optimistic investors could see positive signs in the new updates.

Ms Shah said: “We continue to believe that Prudential can see exceptional sales growth this year and into next, with capacity for management to deploy for organic or inorganic growth if desired.”