Prudential (LON:PRU)

QUOTE AND NEWS
Benzinga  Dec 15  Comment 
Prudential Retirement, a business unit of Prudential Financial, Inc. (NYSE: PRU), announced today a newly created organization, Gibraltar Ventures, which will explore, develop and invest in new strategies to advance retirement and financial...
Jutia Group  Dec 15  Comment 
[Business Wire] - Prudential Retirement, a business unit of Prudential Financial, Inc. , announced today a newly created organization, Gibraltar Ventures, which will explore, develop and i Read more on this. Prudential Financial, Inc. (PRU), with...
Wall Street Journal  Dec 11  Comment 
MetLife and Prudential dodged a regulatory bullet as Congress passed legislation that allows the Fed to apply insurance-capital rules to systemically important insurers.
The Economist  Dec 11  Comment 
WHAT passes for a grave blunder in Washington is often simply a truth unintentionally revealed. That principle was at work on December 9th when Stanley Fischer, vice-chairman of the Federal Reserve, commented on the $22 billion shortfall in...
The Hindu Business Line  Dec 7  Comment 
Early bets on cyclicals have helped the fund perform
The Straits Times  Dec 3  Comment 
December 04, 2014 1:07 AM INSURANCE giant Prudential has identified South-east Asia as a key growth region, and Singapore - its third biggest Asian market - as a high priority.
The Economic Times  Dec 1  Comment 
"The past two to three years have been good for debt investors and, even at the current levels, we remain positive," said Manish Kumar.
Mondo Visione  Nov 26  Comment 
The Prudential Regulation Authority (PRA) has today published a consultation paper introducing a new accountability regime for the insurance sector. The proposals aim to embed a clearer system of accountability and responsibility for senior...
Mondo Visione  Nov 25  Comment 
The Federal Reserve Board on Tuesday invited public comment on enhanced prudential standards for the regulation and supervision of General Electric Capital Corporation (GECC), a nonbank financial company that the Financial Stability Oversight...




 
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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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