Tidjane Thiam, Prudential chief executive said that Asia’s growth was being underestimated as the insurer posted strong first-half profits in spite of spending millions of pounds on an abortive $35.5bn bid for AIA, AIG’s Asian arm.

Mr Thiam, whose pivotal role in the costly AIA affair prompted criticism from investors declared that big takeovers were now “not on the agenda” for the Pru, specifically ruling out the possibility of a second tilt at AIA as they focus on organic growth strategy which is producing excellent results.

The UK-headquartered insurer confirmed that the cost of its attempt at buying AIA had turned out to be less than forecast, coming in at £377m rather than the £450m it had predicted in June.

In the first half of 2010, the Pru’s operating profit rose 41% to £968m under IFRS accounting rules, although its performance benefited from hedging gains.

The company’s operating profit performance was better than analysts’ expectation. Thiam highlighted the performance of the Pru’s Jackson National Life arm in the US, which was reaping the benefit of past pricing discipline.

The smaller than forecast bill for the abortive AIA bid partly reflected a cut in the fees that the Pru was due to pay its advisers, including investment bankers. Foreign exchange hedges had also been neatly unwound

A provisional dividend of 6.61p per share has been proposed and Pru shares rose 1.8% to 572p.

The management team has the support of shareholders. After failing to buy AIA, some shareholders have called for the resignations of Thiam. Chairman Harvey McGrath believes the support of the body of our shareholders can operate on that basis.