Prudential, the UK insurance giant, has stepped up its drive to make acquisitions in the US amid signs that the stellar growth of its Asian business is beginning to come off the boil.

Mark Tucker, chief executive at the UK's number-two insurer, said the US-inspired credit crunch was making potential bolt-on acquisitions in the region look increasingly cheap.

"We are continuing to monitor the market for ... targets that meet our target returns, in particular, life back books that would suit our scaleable platforms," Mr Tucker said.

"In current conditions there are an increased number of sellers and, with the prices of assets now at more realistic levels, we see more potential here than we have for a number of years."

Clark Manning, the head of the Pru's US arm, Jackson National Life, has previously signalled that the insurer has $2 billion (£1 billion) to spend on building up its US division.

The world's biggest retirement market has long been regarded by the insurer as representing an opportunity. It also wants to capitalise on the propensity of the so-called "baby-boomer" generation to save and invest.

As he unveiled group first-half operating profits that beat forecasts, Mr Tucker said Jackson Life had reported record business volumes in the first half.

He said this was despite evidence that the uncertain economic environment and tumbling equity markets was taking its toll on the life insurance sector.

"We've just gone through the worst financial crisis since the great depression and we are telling you that against that the US business has had a record first half," Mr Tucker said.

Total new business for the Pru in the US was £356 million in the six months to the end of June, up 1 per cent on the same period last year.

Fierce competition in the variable annuity market, in which the Pru has determined to write only profitable business, helped force new business profits down 5 per cent to £137 million.

The US performance compared with group new business sales of £1.5 billion, up 12 per cent on the first half last year.

Operating profits of £1.4 billion were 7 per cent higher than last time and comfortably ahead of analysts' forecasts.

The insurer's asset management arm, M&G, recorded net inflows of £4.1 billion of funds and operating profits rose to £146 million.

In Asia, a business set up by Mr Tucker and which has been a big growth engine for the company, first-half sales grew by 14 per cent and new business profits jumped by 15 per cent to £336 million.

However, this compares with growth of 48 per cent during the first half last year and amid projections that Asia could account for half of group sales by the end of this year.

Mr Tucker said he remained bullish about growth in Asia, and committed to a stated target of doubling 2008's regional profits by the end of the year. The target was "eminently achievable", Mr Tucker said, arguing that Asia as "at the top of its game" and that evidence suggested growth in the second half traditionally outpaced the first.

In the UK, where the Pru generates only 20 per cent of its profits, the insurer again beat projections.

Sales based on annual premiums rose 18 per cent to £430 million and operating profits grew 9 per cent to £504 million.

Mr Tucker laid down the gauntlet to rivals, arguing that the Pru is the most profitable and efficient insurance business in the UK.

Pru's shares edged up 8p to 545.5p.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive