Pru warns rivals of its ambition

PRUDENTIAL kicked off the insurance reporting season today, posting a 39% jump in group profits and setting itself a goal of growing UK life and pension sales by double the rate of the rest of the market.

In a warning to rivals, Prudential said it was already picking up business from its competition in Britain since arming itself with an extra £1bn in last autumn's controversial rights issue.

{1}Chief executive Jonathon Bloomer, who came under pressure to resign at the time of the cash call, said Prudential now expected 10% growth in Britain this year, against a market average of 5%. He added: 'We are confident, we have the brand and the financial strength.'

All of Prudential's three core businesses, Britain, Asia and the US, delivered double-digit growth in annual results which showed group operating profits up 39% to £1.12bn.

These come on the back of record insurance sales across the business of £1.85bn for the 12 months to December, up 26% on 2003. The dividend rises 3% to 15.84p.

Bloomer denied the results were a vindication of his strategy, and said the key was instead about 'starting to deliver'. 'We have done a lot of hard work in the business we are now seeing the benefits of that,' he said.

Operating profits in the US, where Prudential owns Jackson National Life, rocketed 75% to £303m, while the Pru's Asian arm recorded a 16% jump to £381m.