Prudential boss: I'm not perfect but won't quit over AIA failure

Prudential boss Tidjane Thiam today insisted he will not quit in the wake of the insurer's failed £25 billion bid for AIA and put his future in the hands of shareholders.

The sturdy set of half-year figures will help the charismatic chief executive as he fights to restore his reputation and to dismiss the notion that he found merely running Britain's biggest insurer not exciting enough for his ambitions.

"I could never understand why that was written," he told the Standard. "I love my job. I have done it with all my heart. I like the nitty gritty, I like detail. I like the industry, I am not someone who just does big deals."

Prudential made profits of £845 million in the last six months, up from £711 million a year earlier. The dividend is up a little to 13.56p, a sop to investors angry at the £284 million paid to advisers for the botched attempt to buy AIA, the Asian arm of AIG.

Pru managed to negotiate those fees down somewhat, aided by "tax relief" of £93 million - a curiosity that may irk other taxpayers.

Thiam, in the job for just a year, and chairman Harvey McGrath have faced calls to quit since the bid failed.

"That's a question for shareholders," said Thiam. "We are employees, our job is to produce value for them. I think the body of shareholders support us. Have we done everything perfectly? No. There is a need to improve our communications, but we believe we are doing a good job."

The former Ivory Coast minister, who fled a coup in his home country before becoming a successful businessman, said of the takeover bid: "It was a very tough decision to go for AIA and the timing was not perfect for me - I am aware that I am new.

"I had to examine my conscience and think, do I try to do this or not? I took a lot of comfort from the fact that it was a unanimous board decision. We had 17 board meetings on this and we knew it could fail. That is the job of management."

Pru's financial strength is considerable - a position enhanced by Thiam's stint as finance director. The IGD surplus - an industry measure of solvency - stands at £3.4 billion.

The insurer made less play of this number today than it has done in the recent past. "That means the issue has been dealt with," said Thiam. "Times are better. We have transformed the capital position and derisked the business. The IGD gives us a lot of flexibility. If there is a double dip, we are prepared."

Sales at the Pru's Asian arm leapt from £417 million to £669 million. Critics say this shows the firm should focus on organic growth in Asia rather than risky takeovers.

Thiam responded: "It is because we are in such good shape that we wanted to do the deal. We haven't been good at explaining the potential in Asia. For a Western-based person these are incredible numbers."

Funds under management are up from £245 billion to £309 billion. The shares slipped 2.5p to 559.5p.