QUOTE AND NEWS
Forbes  May 29  Comment 
At our recent Inclusion Inc. conference at The Fletcher School, there was a fascinating conversation between Tim Cross, President of YouthBuild International, and two of YouthBuild’s corporate partners, Lata Reddy, President of The Prudential...
Channel News Asia  May 28  Comment 
MAS' managing director Ravi Menon says Asian lenders are well-positioned to tap growth prospects, as they focus on innovating and maintaining high prudential standards.
newratings.com  May 27  Comment 
LONDON (dpa-AFX) - Prudential Real Estate Investors, a part of Prudential Financial Inc (PRU), on Wednesday said it has acquired three assisted living and memory care communities in Tennessee and Connecticut on behalf of Senior Housing Partners...
Mondo Visione  May 21  Comment 
The FCA as a prudential regulator The Financial Conduct Authority, although it has the word 'conduct' in its name, is also responsible for the prudential regulation of over 24,000 firms in the UK.  We cover a wide range of sectors, many of...
Mondo Visione  May 21  Comment 
​Background This consultation paper seeks views on a draft supervisory statement which draws on the Prudential Regulation Authority’s (PRA) regulatory experience to identify some key issues for boards to consider, and to which the PRA pays...
The Economic Times  May 19  Comment 
Investors may be keen on earlier-than-expected rate cuts by the RBI, but depending on monsoon and oil prices, they could well remain unchanged till Dec.
New York Times  May 14  Comment 
The chief executive of Prudential Group Insurance learned in her early days of management that asking for help was O.K. (With video.)
Jutia Group  May 12  Comment 
[Business Wire] - Prudential Mortgage Capital Company announced today that Trevor Tolbert joined the firm as a director responsible for originating multifamily and healthcare loans. Prudential Mortgage Capital Company is the commercial mortgage...




 
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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