Aviva remains The Share Centre's preferred insurance stock

This morning, Prudential announced better than expected results and an increase in its interim dividend by 5%. Nick Raynor, investment advisor at The Share Centre explains what this means for investors.

"Prudential saw a big increase in profits for the first half of 2010. Across the board operating profits rose 34% to £1.68bn and new business sales were up 27% to £892m, assisted by improving investment returns and a broader market recovery during the first half of 2010.

"The insurer's operations in Asia played a significant part in boosting profits as new business sales in the area increased 36% to £713m. Looking ahead, Prudential's management is confident that this momentum can continue until at least the end of the year.

"The costs of failing to buy Asian business AIA stands at £377m, down from the original figure of £450m. The failure of this venture was disappointing for investors and Prudential will be looking to regain support by increasing the interim dividend by 5% to 6.61p per share.

"This is a healthy dividend, however Aviva, our preferred play for investors looking at the insurance sector, is offering just under 8%. Investors seeking income could do worse than to take a closer look at the sector as a whole."