SINGAPORE (Yosefardi) – Prudential Plc said consumer sentiment in Indonesia remains depressed as the economy faces short to medium-term challenges from weaker global demand for its raw material exports, with President Jokowi’s ambitious reform programs progressing at a slower pace than anticipated.
Against this backdrop, Prudential reported its new business APE sales in the first half of 2015 were in line with the last period at £183 million, while new business profit was lower, reflecting business mix and adverse interest rate effects.
However Prudential remains confident in the medium-term potential in Indonesia market given modest insurance penetration and a growing middle class.
Notwithstanding flat sales, the recurring regular premium nature of the unit-linked and protection business that Prudential writes in Indonesia has driven IFRS operating profit higher by 21% to £167 million.