Prudential (LON:PRU)

QUOTE AND NEWS
The Hindu Business Line  Aug 19  Comment 
Top three positions continue to be captured by the same three fund houses namely HDFC, ICICI Prudential Asset Management Company and Franklin Templeton during the past three years, according to th...
The Straits Times  Aug 14  Comment 
August 15, 2014 1:11 AM COURTS Asia has signed a deal to allow insurer Prudential to operate at all its Singapore stores for a fee, chief executive Terry O'Connor said yesterday.
Jutia Group  Aug 14  Comment 
[Business Wire] - Prudential Retirement announced today that it has added new plan sponsor client Pittsburgh Glass Works, LLC, a manufacturer and distributor of automotive glass products. Prudential Retirement is a business unit of Prudential...
Financial Times  Aug 13  Comment 
Insurers top and tail the FTSE 100 as Prudential continues to win support after its results, while Admiral falls after failing to impress the market
SeekingAlpha  Aug 13  Comment 
Prudential Public Limited Company (NYSE:PUK) Q2 2014 Earnings Conference Call August 12, 2014 06:30 ET Executives Tidjane Thiam – CEO Jackie Hunt – Executive Director and Chief Executive, Prudential UK & Europe Nic Nicandrou...
TheStreet.com  Aug 12  Comment 
NEW YORK (TheStreet) -- Shares of Prudential Plc  are up 3.02% to $46.06 after the London-based financial services company said it will increase its dividend.  The company plans to increases its 2014 interim dividend 15% to 18 cents per a...
Wall Street Journal  Aug 12  Comment 
The U.K.-based savings and insurance group is showing strong growth in in emerging markets. But a strong British pound affects how much shareholders get back from its overseas success.
Times Online  Aug 12  Comment 
Tumbling Far Eastern currencies hit profit growth at Prudential despite growing demand for investment and insurance products from Asia’s mushrooming...




 
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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