QUOTE AND NEWS
The Economic Times  Jan 20  Comment 
The brokerage said the bank’s initiative to improve the NPL coverage ratio is encouraging and it expects earnings to normalise after declining in FY17.
The Hindu Business Line  Jan 7  Comment 
This multi-cap fund has especially done well during sharp bounce-back in equities
The Economic Times  Jan 5  Comment 
Overweight ICICI Prudential Life Insurance Company Ltd. with a target of Rs 385. Morgan Stanley sees multiyear improvement in profitability leading to strong VNB CAGR during F16-F19.
Mondo Visione  Dec 20  Comment 
The European Banking Authority (EBA) launched today a data collection for commodity derivatives firms that will support the European Commission in the calibration of the new prudential regime for investment firms. This exercise follows up on the...
Mondo Visione  Dec 20  Comment 
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published today the revised Joint Guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the banking,...
The Economic Times  Dec 20  Comment 
Buy ICICI Prudential Life Insurance Company Ltd. at a price target of Rs 332 and a stoploss at Rs 292 from entry point
MarketWatch  Dec 16  Comment 
Wells Fargo’s legal nightmare year isn’t over yet while a new robo-advisor partnership gets ready to roll
MarketWatch  Dec 15  Comment 
Prudential Financial Inc. provided its 2017 outlook in a presentation to investors, saying it expects earnings per share in the range of $10.15 to $10.65 for the year. That surrounds the FactSet EPS consensus of $10.33. The insurer said it is...
Financial Times  Dec 13  Comment 
Episode highlights risks insurers run as they try out alternative sales methods
New York Times  Dec 12  Comment 
The move comes after a suit was filed claiming the insurer had tried to hush up evidence that the bank had opened sham accounts. Wells Fargo also cut off sales of renters’ insurance from Assurant.




 
TOP CONTRIBUTORS

Prudential plc (LON: PRU) is a UK-based financial services company with operations in the United Kingdom, the United States and Asia. It operates in the United Kingdom through its subsidiaries, primarily The Prudential Assurance Company Limited (PAC), Prudential Annuities Limited (PAL), Prudential Retirement Income Limited (PRIL) and M&G Investment Management Limited.[1] In the United States, Prudential’s main subsidiary is Jackson National Life Insurance Company.[1] The company also has operations in Hong Kong, Malaysia, Singapore, Indonesia and other Asian countries.[1]

Prudential has two segments: insurance operations and asset management operations. Prudential offers a range of retail financial products and services, and asset management services. The retail financial products and services include life insurance, pensions and annuities, as well as collective investment schemes.[1]

Business Growth

Prudential's new business profit was up 25% to £2.0 billion from £1.6 billion in 2009.[2] IFRS operating profit based on long-term investment returns increased 24% to £1.9 billion from £1.6 billion in 2009.[2]

Sales of Asian life insurance in 2010 were up 23% to £3.5 billion and margins increased to 58% from 57% in 2009.[2] Performance in Asia was driven by Indonesia (up 49%), Malaysia (up 40%), Hong Kong (up 19%) and Singapore (up 37%).[2]

In the U.S., sales of life insurance totaled £1.2 billion compared to £912 million in 2009, with profits rising 15% to £761 million.[2] Prudential took advantage of the extreme dislocation prevalent in the corporate bond market. Jackson has capitalized on the weakened competitive environment in the U.S. life insurance market and has emerged as one of the top three players in the variable annuity market in terms of sales and number two in terms of net flows.

In the UK, Prudential delivered total retail and bulk annuity sales of £820 million compared to £723 million in 2009 and new business profit of £365 million compared to £230 million in 2009.[2]

Trends and Forces

Growing demand for insurance and financial services in emerging Asian countries benefits Prudential

In recent years, Asia has been Prudential's main source of financial growth. The emerging markets of South-East Asia such as Indonesia, Malaysia, Vietnam, the Philippines, Thailand, Hong Kong, and Singapore are particularly attractive. Distribution remains critical to Prudential's business in Asia, with its unique combination of proprietary agency distribution and bank partnerships continuing to deliver excellent results. Prudential is poised to take advantage of the growing wealth of the Asian middle class.[2]

The retirement of the Baby boomer generation represents a growth opportunity for Prudential's U.S. operations

In the United States, 78 million "baby boomers" are set to retire. Prudential is poised to benefit by offering retirement products, such as annuities, to these retirees.[2]

In the U.S., Prudential has maintained its focus on value over sales volume growth, ensuring sales are delivered at highly profitable margin levels. Additionally, the flight to quality during the 2008 Financial Crisis has allowed Prudential's U.S. business to increase sales volumes and market share. Prudential plans to increase its number of licensed agents in the U.S. and registered representatives to more than 130,000.[2]

Competition

Prudential, which competes primarily in the U.S., UK, and Asian markets, competes with large insurance and financial services companies from across the world such as MetLife (MET) and Lloyds Banking Group (LYG).

References

  1. 1.0 1.1 1.2 1.3 Google Finance: LON: PRU
  2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 Prudential plc Annual Report 2010
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