QUOTE AND NEWS
The Hindu Business Line  Mar 21  Comment 
The fund’s large-cap tilt makes it suitable for investors with low risk appetite
Mondo Visione  Mar 20  Comment 
The Prudential Regulation Authority (PRA) has today published its final rules setting out how it will implement the Solvency II Directive (Solvency II) in the UK. Solvency II puts in place a consistent and coherent solvency framework for...
Mondo Visione  Mar 19  Comment 
Chairman Shelby, Ranking Member Brown, and other members of the committee, I appreciate the opportunity to testify on the threshold in section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) for application of...
Mondo Visione  Mar 19  Comment 
The Bank of England is consulting on the regulatory fees and levies required to support the Prudential Regulation Authority’s (PRA) strategic priorities and business aims for the fee year 2015/16. The fees from individual firms are based on the...
The Straits Times  Mar 18  Comment 
March 19, 2015 1:23 AM OWNERS of commercial buildings such as Prudential Tower in Cecil Street are extracting more value from their investments by sub-dividing units and selling them.
The Economist  Mar 11  Comment 
The excitingly dull Tidjane Thiam INSURERS see bankers as overpaid and amoral; bankers see insurers as would-be bankers who did not make the cut. So the announcement on March 10th that Tidjane Thiam, the chief executive of Prudential, an...
MarketWatch  Mar 11  Comment 
Investors and analysts are welcoming Tuesday's news that Tidjane Thiam from Prudential will take over the helm at Credit Suisse . Shares of the investment bank rose 1.9% on Wednesday after J.P. Morgan Cazenove lifted its rating on the stock to...
Wall Street Journal  Mar 10  Comment 
Prudential PLC will appoint Mike Wells, head of its U.S. operations, as the company’s next chief executive, according to a person familiar with the plan.
The Economic Times  Mar 10  Comment 
Prudential fell 3.1 per cent as the loss of its chief executive, Tidjane Thiam, to Credit Suisse took the shine off a 14 per cent rise in 2014 operating profits.
guardian.co.uk  Mar 10  Comment 
Insurer’s boss has had a rocky path to become one of Britain’s most feted business leaders When he leaves Prudential after the insurer’s annual meeting in May, Tidjane Thiam will go out on a high. Prudential’s profits have more than...




 
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
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki