Prudential starts to deliver on promise

PRUDENTIAL chief executive Jonathan Bloomer today took the first step towards winning over critics in the City by beating market expectations with end-of-year new business figures.

Admitting the Pru 'didn't get its communications right' at the time of last autumn's controversial rights issue, Bloomer insisted he was not running out of time to convince sceptics he is the man for the job.

He added: 'To me it's very much about delivery. Can we deliver what we said we would when we did the rights issue? This is the first step and we need to continue to deliver in 2005 and 2006.'

Fourth-quarter numbers today showed Prudential generated record total insurance sales of £1.85bn last year on the industry standard annual premium equivalent (Ape) basis, up 26% on the previous 12 months.

UK and Europe sales rose 40% to £817m, although growth was distorted by a huge, one-off bulk annuity deal with Royal London. Crucially, margins remained stable at around 25%.

Bloomer stunned analysts in October by announcing plans for a £1bn cash call to bolster the group's balance sheet and raise funds for a UK market share push.

Oriel Securities analyst Roman Cizdyn said Bloomer had bought more time. 'There's a pistol to his head and he knows it. If he doesn't deliver, it is going to go off.'