Prudential boss vows ‘to do things differently’ amid fresh growth strategy

It comes after a significant restructuring at the company which saw it shed the vast majority of its US and European operations in order to focus on markets in Asia and Africa.

The company has pointed towards growth potential in these markets, particularly China, but has seen its shares drift since the start of the year due to sluggish economic growth in the region.

In the fresh update, the chief executive officer said the company will seek between 15 per cent and 20 per cent in compound annual growth each year up to 2027.

The group said its strategy included “targeted investment in structural growth markets” across Asia and Africa.

Mr Wadwhani said: “We have today announced that we will do things differently in the way we run Prudential.

“With a clear strategy, operational and capital allocation priorities, we are focused on delivering sustainable value for all our stakeholders: employees, customers, shareholders and our communities.

“We are excited to write the next chapter of growth at Prudential.”

It came as Prudential reported an uptick in profits over the past half-year as it hailed a strong performance in Hong Kong.

The FTSE 100 firm saw new business profit rise by 36 per cent to 1.49 billion dollars (£1.18bn) over the six months to June 2023.

Meanwhile, operating profits increased by 4 per cent to 1.46 billion dollars (£1.16bn).

Prudential was buoyed by a surge in Hong Kong following the easing of pandemic restrictions, allowing visitors from the Chinese mainland.

It added that consumers in Asia have remained “resilient despite the challenging environment” and highlighted that positive momentum has continued into the third quarter of the year.

Richard Hunter, Head of Markets at interactive investor, commented: “The early signs following the arrival of a new CEO are promising, underpinned by a new purpose and strategy after an operational review.

“Now fully focused on Asia and Africa, the group is fully aware that such major continents bring significant opportunities.

"In Asia, for example, household wealth was over $150 trillion in 2021, broadly similar to North America and well in excess of Europe, while it is expected that by 2030 Asia and Africa will house three-quarters of the global working age population.

"In addition, the revised longer term strategy starts on a strong footing, helped by a recent fund raising of $2.4bn in the last financial year which went towards reducing debt.

"The insurance and health protection markets within Prudential’s target geographies provide a rich seam of opportunities alongside increasingly wealthy populations with evolving financial needs. The company has pointed to an expected middle class population of 1.5 billion across Asia by 2030, with an estimated health protection gap of $1.8 trillion. The potential spoils are enormous and Prudential has a strong reputation in these regions.”