Prudential, Ping An report strong policy sales in first two months of 2023 as end of pandemic measures spurs growth

The end of pandemic restrictions in Hong Kong and mainland China is reviving policy sales and improving the 2023 outlook for major insurance companies Prudential and Ping An, after both companies reported profit declines for 2022.

Sales of new policies at Prudential grew 15 per cent in Asia in the first two months of the year, with the insurer crediting the strong growth to the scrapping of Covid-19 restrictions across the region and the reopening of borders between Hong Kong and mainland China.

Meanwhile, Ping An Insurance, the largest insurer in mainland China, reported that its premium income from life-insurance policies across the country rose 5 per cent year on year in the first two months of 2023 to 13.55 billion yuan (US$1.97 billion).

UK-based Prudential said in an exchange filing on Wednesday that sales were back on track following a slump last year because of the pandemic, adding that its investment returns were affected by market volatility.

Prudential reported a 55 per cent year-on-year decline in net profit to US$1.007 billion for 2022, the first full-year results after its restructuring as a pure Asia and Africa focused insurer. Analysts polled by Bloomberg had estimated an 83 per cent decline in profit.

“We have delivered a resilient performance against a backdrop of Covid-19-related disruption and broader macroeconomic volatility,” said Anil Wadhwani, the new CEO of Prudential in his first result announcement after joining the insurer last month. “The results reflect the advantage of our diversified business model across the Asia region.”