Prudential has reported operating profits for 2012 of £2.5bn, up 25% on the previous year.
UK new business profit increased 20% to £313m, up from £260m in 2011.
IFRS long-term operating profit for the UK grew 3% to £703m, up from £683m in 2011, with the completion of two selective bulk annuity deals contributing to this figure.
Prudential said the UK business continues to benefit from its focus on its core products, with-profits and individual annuities, with sales of both increasing by more than 30% during the period.
The life company said it continues to assess the impact of the Retail Distribution Review, which was implemented on 31 December 2012, and said the rule change is likely to lead to some short-term dislocation in the market as consumers and distributors adjust to the new sales environment.
"We expect this transition phase to dampen our sales of investment bonds in 2013, compared to the high sales in 2012. We believe that with-profits products will continue to be popular with customers seeking competitive long-term real investment returns," the group said in a statement.
M&G, the group's asset management arm, saw record total retail and institutional net inflows of £16.9bn in 2012, significantly higher than 2011 and the previous high of £13.5bn in 2009.
Total net sales for M&G in the UK were lower than 2011, reflecting the maturity of the UK business and management decisions to slow the inflow of new money into two market-leading UK corporate bond funds to safeguard investment performance, Prudential said, adding it expects the trend to continue in 2013.
Prudential's directors recommend a final dividend of 20.79 pence per share, up from 17.24 pence in 2011, which brings the total dividend for the year to 29.19 pence, up from 25.19 pence the previous year, representing an increase of 15.9% over 2011.
Tidjane Thiam, group chief executive, said: "The quality of our products, the strength of our multi-channel distribution platform, and our ability to innovate and develop creative solutions to meet our customers' needs, translate over time into profitable and sustainable growth for the company. Our focus on capital and risk management has allowed us to deliver both growth and cash to shareholders, despite a challenging macroeconomic environment."
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