Prudential (LON:PRU)

QUOTE AND NEWS
Mondo Visione  Jul 24  Comment 
The Prudential Regulation Authority (PRA) has today proposed changes to its rules to implement the EU Bank Recovery and Resolution Directive (BRRD). The BRRD provides a common set of tools and powers for dealing with failing banks and will take...
DailyFinance  Jul 16  Comment 
Prudential Investment Management has named Michael Schlachter the head of its Multi-Asset Class Solutions group, a newly formed team that will address the most pressing portfolio-wide challenges faced by institutional...
Financial Times  Jul 15  Comment 
Former senator responsible for the landmark Dodd-Frank financial reform bill says that too many oversight agencies has caused confusion
Mondo Visione  Jul 11  Comment 
The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) today publish the detailed Terms of Reference (ToR) for the review into the failure of HBOS plc (HBOS).   The Board of the Financial Services Authority (FSA)...
Mondo Visione  Jul 10  Comment 
Good morning and thank you for giving me this opportunity to speak on the subject of bank capital adequacy. I am going to focus on the design of the capital adequacy regime. I am going to draw out the failings of the old regime and why those...
Mondo Visione  Jul 3  Comment 
The European Banking Authority (EBA) published today its technical advice to the European Commission on the use of a prudential filter for gains and losses arising from banks' own credit risk of derivatives. The Authority considers as appropriate...
The Hindu Business Line  Jul 2  Comment 
 Standard Chartered Bank today announced that it has entered into a strategic bancassurance partnership with ICICI Prudential Life Insurance Company Ltd (ICICI Prudential Life). Thi...
The Economic Times  Jul 1  Comment 
"If we take away the geopolitical risks, the medium to long-term trajectory of energy prices could be down, which is good, because we are importers of energy."




 
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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