Pru and Standard Life results due

The attention of investors will turn from banking to the insurance sector next week with results from key players Standard Life and Prudential.

Prudential is expected to post operating profits of £1.7 billion, up 20% from £1.4 billion, in its annual results on Wednesday after a year dominated by talk of its expansion in Asian markets.

The insurer recently revealed its intention to double the 2009 value of new business profits in Asia – which were £713 million – by 2013.

The rapidly-expanding economies of South East Asia are ripe for growth as the penetration of insurance products remains low in comparison with developed countries.

The company is still looking to rebuild bridges with the City following its abortive bid to land the Asian arm of US group AIG last year.

Despite the failure of the bid, which came after its major investors baulked at the 35.5 billion dollar (£22.6 billion) asking price, Prudential has stuck to its strategy of organic growth in Asia.

In the UK, the Pru has concentrated on driving profits through value rather than volume growth. December’s severe weather is likely to have driven up weather-related costs at the end of the financial year.

Standard Life follows on Thursday and the results are expected to paint a different picture with operating profits set to decline by 11% to £355 million, from £399 million in the previous year. In its half-year results, the insurer reported a 5% decrease in UK profits due to lower volumes of annuity business and increased costs relating to investment in new areas of business.

But the group is expected to cheer investors with a 5% increase in its final dividend. Like Prudential, Standard has benefited from a strong performance in international markets, particularly in India where it has highlighted “great potential”.

However, Andrew Crean, analyst at Autonomous, said Standard Life would continue to under perform in the UK. He said: “Standard Life has chosen to compete mainly in the retail savings and retail and corporate pensions market within the UK, an area where margins are relatively slim and competition considerable.”