QUOTE AND NEWS
Insurance Journal  Apr 15  Comment 
Tokio Millennium Re AG (TMR), the Zurich-based global reinsurer and subsidiary of Tokio Marine & Nichido Fire Insurance Co. Ltd., announced that it has received authorization from the UK Prudential Regulation Authority (PRA) to operate a branch...
Mondo Visione  Apr 13  Comment 
The U.S. Commodity Futures Trading Commission (CFTC) announced today that CFTC Chairman Tim Massad and Australian Prudential Regulation Authority (APRA) Chairman Wayne Byres have signed a Memorandum of Understanding (MOU) regarding cooperation and...
Jutia Group  Apr 2  Comment 
[Business Wire] - Lori Dickerson Fouché, chief executive officer, Prudential Group Insurance, a business unit of Prudential Financial, Inc. , and Sharon C. Taylor, senior vice president, H Read more on this. Prudential Financial, Inc. (PRU),...
guardian.co.uk  Mar 31  Comment 
UK companies with shares in Hong Kong – such as Pru and HSBC – have to provide details of the five highest-paid staff The scale of pay packages being handed out by the UK’s biggest companies was underlined when Prudential revealed its...
Forbes  Mar 31  Comment 
We’ve all seen the charts and had the dispiriting conversations with our financial advisor. For most of us, there is a seven-figure gap between what we need for retirement and what we’ve saved. This isn’t an information problem. We have...
Jutia Group  Mar 31  Comment 
[Business Wire] - Prudential Mortgage Capital Company today announced it provided a $110 million Fannie Mae loan to a real estate investment manager to acquire Residences on the Avenue, a 335 unit apartment community in the Foggy Bottom...
Yahoo  Mar 31  Comment 
Prudential (PRU.L) paid outgoing chief executive Tidjane Thiam 11.8 million pounds ($17.45 million) in 2014, a 35 percent increase on his 2013 compensation, following a bumper incentive plan payout in his final year in charge. Thiam, who is...
Mondo Visione  Mar 31  Comment 
Background This policy statement publishes the final management expenses levy limit (MELL) for the Financial Services Compensation Scheme (FSCS) for 2015/16.   This policy statement outlines that the MELL has been set at £74.4m for...
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...




 
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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