Insurer tipped to boost payouts to investors as earnings expand

PRUDENTIAL will be able to ramp up its payouts as early as next year as it enjoys strong underlying earnings, analysts and insiders believe.

The insurer, which has grown its interim dividend by five per cent for the past four years, could either rebase the payout to a higher level or up its growth rate to as much as eight per cent, according to one analyst.

Prudential is expected to expand earnings per share at a double-digit rate for the next three years. In the first half it generated £1.1bn, £460m of which was repatriated to the UK and £318m of which was paid out.

Referring to a potential upgrading of the dividend, finance director Nic Nicandrou said: “It’s something where we’ll get a decision as we come to that point. We think being consistent is very important.”