U.K. Prudential Separates Europe Businesses, Old Mutual to Split in 4 Entities

Sarla Buch
15 Mar, 2018
New York City

Direct Energie net tumbled but revenues soared. Deutsche Lufthansa reported strong performance in fiscal 2017. Prudential profit jumped and the insurer said it agreed to sell its

[R]4:00 PM Frankfurt – Direct Energie net tumbled but revenues soared. Deutsche Lufthansa reported strong performance in fiscal 2017. Prudential profit jumped and the insurer said it agreed to sell its £12 billion annuity business. Old Mutual plans to split its business into four separate entities.[/R]

In London trading, FTSE 100 index gained 21.80 or 0.3% to 7,154.49 and in Frankfurt the DAX index jumped 132.95 or 1.1% to 12,369.68.

In Paris, CAC 40 index increased 14.04 or 0.3% to 5,247.39.

Direct Energie SA plunged 7.8% to €33.66 after France-based electricity and gas provider reported revenues in the year ending in December soared 16.2% from a year ago to €2 billion.

Net income in the year tumbled 58% to €51.9 million from €123.6 million in a year ago period and diluted earnings per share dropped to €1.14 from €2.85.

The electricity and gas supplier said customer growth in the year surged 21.4% to 949,000 and operating profit advanced 17.6% to €102.1 million.

Direct Energie forecasted fiscal 2018 revenues growth between €1.35 billion from €1.4 billion and operating profit in the range of €195 million to €205 million and plans to achieve 20,183 million client sites in fiscal 2018 and 4 million clients by 2020.

Deutsche Lufthansa AG jumped 2.2% to €26.77 after Germany-based airline services provider reported total revenues in the year ending in December jumped 16% from a year ago to €35.6 billion.

Net income in the year soared 33.1% to €2.4 billion from €1.8 billion in a year ago period and diluted earnings per share increased to €5.03 from €3.81.

Prudential Plc gained 1.3% to 1,942 pence after the U.K.-based insurance and financial services provider reported revenues in the year ending in December surged 20.6% from a year ago to £86.6 billion.

Net profit in the year jumped 26.3% to £2.4 billion from £1.9 billion in a year ago period and diluted earnings per share advanced to 93 pence from 75 pence.

Separately, today the insurer agreed to sell £12 billion of its domestic annuity business, covering 400,000 policy holders to Rothesay Life and the transaction is expected to close by the end of 2019.

The group also announced that it plans to separate its U.K. and European businesses as a separate entity and headquarter and list it in London, U.K. Prudential Plc will remain focused on Asia, Africa and the U.S.

Old Mutual Plc rose 0.1% to 251.20 pence after the U.K.-based banking and insurance services provider said revenues in the year ending in December soared 67.7% from a year ago to £10.4 billion.

Net profit in the year surged 53.8% to £1.3 billion from £845 million in a year ago period and diluted earnings per share increased to 18.9 pence from 11.7 pence.

The insurer said pretax operating profit jumped 22% to £2 billion from a year ago period.

Old Mutual intends to split its four businesses Old Mutual Wealth, Old Mutual Emerging Markets, South African lender Nedbank and US firm Old Mutual Asset Management into four separate entities.