×

Rising interest rates are 'good' for insurers and savers, says Prudential CEO

Jason Alden | Bloomberg via Getty Images

Rising interest rates are beneficial for insurers and savers, the chief executive officer of the British insurer Prudential told CNBC on Tuesday.

"I do like an environment where there's upward pressure," Mike Wells, CEO of Prudential, said.

"Rising rates are good for Prudential. Rising rates are good for savers who have a part of their assets in debt instruments," Wells explained.

His comments come on the eve of a meeting of the U.S. Federal Reserve, where policymakers are widely expected to hike interest rates for the third time in a decade.

The insurer, which has operations in Britain, the United States and Asia, said Tuesday 2016 operating profit rose 7 percent to 4.3 billion pounds ($5.16 billion), beating expectations, thanks to growth in its Asian business.

Shares in Prudential rose 1.8 percent to 1,694.5 pence in early trading in London.

Follow CNBC International on Twitter and Facebook.