QUOTE AND NEWS
The Hindu Business Line  Feb 25  Comment 
The fund’s a top performer but sector funds are affected more by market ups and downs
BBC News  Feb 24  Comment 
Prudential and Standard Life are to pay compensation to thousands of pensioners sold the wrong annuities.
Mondo Visione  Feb 24  Comment 
​Press release Today the PRA has taken a significant step to facilitate effective competition with proposals that reduce any risk that smaller banks and building societies are disadvantaged by the approach we take to setting capital...
Yahoo  Feb 22  Comment 
"The company has provided notice to Wells Fargo that it may seek indemnification under the MyTerm distribution agreement," Prudential said in a Feb. 17 regulatory filing. It was unclear how much in costs Prudential may seek. A Wells spokesman...
Mondo Visione  Feb 15  Comment 
Abu Dhabi Global Market (ADGM), the International Financial Centre in Abu Dhabi, and Australian Prudential Regulation Authority (APRA), the National prudential regulator of Australia, signed a Memorandum of Understanding (MoU) to enable further...
Financial Times  Feb 10  Comment 
New stage in decline of what was once mainstay of retirement income
The Hindu Business Line  Feb 2  Comment 
The Budget 2017 can be best described as a constructive continuation of the work started two Budgets ago. Finance Minister Arun Jaitley laid emphasis on creating a Budget that serves the needs of th...
Mondo Visione  Feb 1  Comment 
The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) have today published final changes in a Policy Statement (PS) aimed at strengthening the transparency and effectiveness of their enforcement decision-making...




 
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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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