Prudential Share Discussion Threads

[kiwi2007] 29/9/2015 08:51

.....The Trust made a new investment in Prudential. This company has an exceptional growth record and an attractive position in the fast growing Asian life insurance market, as well strong businesses in UK and American life insurance and fund management. The shares have been weak performers in recent months on macro concerns about Asian growth, as well as specific regulatory concerns in the USA and the UK. We believe these concerns are exaggerated and so took advantage of a rare drop in the company’s valuation to buy a position......

hxxp://www.merchantstrust.co.uk/Navigate.aspx/Merchants/1/Portfolio-and-Performance/Fund-Manager-Comment

[robsy2] 13/8/2015 18:54

not a lot it seems , A quality company . I like the company and their products so I0ve bought some shares as well.

[2flatpack] 29/5/2015 13:20

Is there no interest in the pru
Cheers

[pkvidean] 20/5/2015 13:38

Putting this thread to top of stack...at least it shows the latest News.

[corlis] 12/4/2015 18:18

of course this is not going towards 1,500
Had a good ole study & i will be buying this tomorrow.

[mike740] 20/3/2015 07:44

Prudential PLC..........forward P/E to 2016 at 14 looks far too cheap historicaly.... 20 plus.


FORECASTS

2015 2016
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

SG Securities
19-03-15 BUY 113.58 38.78 124.77 40.72
Panmure Gordon
19-03-15 BUY 110.31 39.00 123.93 41.20
Shore Capital [R]
13-03-15 BUY 3,167.00 104.00 37.00
Morningstar Equity Research [R]
10-03-15 HOLD 3,337.00 102.00 30.00

2015 2016
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 3,254.93 107.78 38.42 124.35 40.96
1 Month Change 9.27 5.11 1.48 10.14 1.46
3 Month Change -82.07 6.29 1.39 16.70 -0.07

GROWTH
2014 (A) 2015 (E) 2016 (E)

Norm. EPS 57.61% 21.54% 15.38%
DPS 14.78% 9.67% 6.62%

INVESTMENT RATIOS
2014 (A) 2015 (E) 2016 (E)

Dividend Yield 2.00% 2.19% 2.34%
Dividend Cover 2.53x 2.81x 3.04x
PER 19.76x 16.26x 14.09x
PEG 0.34f 0.76f 0.92f
Net Asset Value PS p 1,090.00p p

[mike740] 19/3/2015 17:24

Take note of this, good write up from Hargreaves L........

PRUDENTIAL

Sell: 1,752.00pBuy: 1,753.00p19.00p (1.10%)
FTSE 100: 0.25%
Market closed | Prices as at close on 19 Mar 2015 | Switch to live prices | Turn

HL COMMENT (10 MARCH 2015)Updated 19/March/2015

Prudential delivered a strong performance in 2014. IFRS operating profit increased 14% at constant currency to £3,186 million (8% at actual exchange rates), with all three of the Pru's core geographic regions delivering growth. Asia and the US both performed strongly with operating profit in both divisions growing by 17% at constant currency. The UK Life business also delivered a resilient performance, growing operating profit by 7%, despite a substantial decline in individual annuity sales as a result of the recent budget changes. This gave the company the confidence to raise the full year dividend by 10%. On a less positive note, Prudential has also announced today that its highly regarded CEO, Tidjane Thiam, will step down later this year, to take the reins at Credit Suisse. The shares fell by around 3% in early morning trading.

Key highlights (on constant exchange rate basis):
IFRS operating profit of £3,186 million, up 14%.
Underlying free surplus generation (after investment in new business) of £2,579 million, up 9%. Net cash remittances from increased by 11% to £1,482 million.
IFRS shareholders funds of £11.8 billion, up 22%.
Insurance Groups Directive (IGD) capital surplus estimated at £4.7 billion; solvency requirements covered 2.4 times.
Annual premium equivalent (APE) sales increased by 12% to £4,650 million.
Full year dividend increased by 10% to 36.93 pence per share. A progressive dividend policy is maintained with medium term target dividend cover of around two times.

Geographic/divisional performance
Prudential operates four main business units. The UK Life business, which includes the sale of with-profits policies and annuities, the asset management business, which includes M&G in the UK and Eastspring Investments in Asia. In the US, Jackson National is primarily focused on the sales on variable annuities and other retirement products, whilst Asia Life sells a range of insurance policies in South East Asia. The performance of each of these business units is summarised below:

UK Life: IFRS operating profit rose 7% to £752 million despite a 49% decline in sales of individual annuities as a result of after major changes to the UK's pensions regime were announced in the last Budget. This was more than offset by a 34% increase in with-profits bond sales and a strong rise in bulk annuity sales to defined benefit pension schemes.

Asset management: M&G IFRS operating profit rose 13% to £446 million and cash remitted increased by a record 21% to £285 million. Continued net fund inflows and generally positive market movements saw M&G's total funds under management rise by 8% to £264 billion. Eastspring's total funds under management hit a record £77.3 billion, up 28% on the prior year.

Jackson Life: Jackson's life IFRS operating profit grew 21% (15% on an actual exchange rate basis) to £1,431 million and cash remittances grew by 41% to a record £415 million. This was driven by a 10% increase in total variable annuity sales to £1,401 million.

Asia: Asia delivered results, described by the Pru as "excellent across all metrics" during 2014. IFRS operating profit of £1,140 million was up 17% over 2013 (6% on actual exchange rate basis) and free surplus generation increased 15% to £592 million (3% on actual exchange rate basis). Net cash remittances were £400 million, in line with 2013 and the group produced £1,162 million of new business profit, 13% higher than in 2013

Change of CEO:
Prudential today announced that Tidjane Thiam, Group Chief Executive, will step down later this year to join Credit Suisse as CEO. The group has identified a successor and expects to be able to announce the new CEO once the regulatory approval process has been completed.

Outlook:
Prudential continue to believe that Asia represents their greatest opportunity for future growth. The geographic spread of their operations across multiple Asian nations gives them a degree of diversity and resilience, even when individual countries present short-term challenges.

In the US, Prudential will continue to focus on serving the needs of the 77 million baby boomers approaching retirement, through the sale of variable annuities and other products targeting the ageing population, whilst focusing on distributable cash flow.

In the UK the life market faces the challenges of low long term interest rates and a major structural reform of the pensions and annuity market places. The company believes this will lead to additional opportunities for both its Life and Asset Management (M&G) businesses over time.

Commenting on the outlook for the wider group, the company said:
"We remain confident in our ability to produce profitable growth over the long term and to continue to create value for our customers and shareholders".

Our view:
Prudential is a good business with good long term prospects but is trading on a valuation that leaves little room for anything to go wrong. On a price to book (P/B) and price to earnings (P/E) basis the company is just about as expensive as it has ever been, while the dividend yield is at a historical low. As long as stock markets continue to perform well, the Pru is more likely to prosper. But if conditions take a turn for the worse, the current valuation would appear to offer little shelter.

Today's results were undeniably strong. The Jackson Life business in the US continues to go from strength to strength as the baby boomers retire in their droves. And even though sales of individual annuities fell by half as a result of recent pension reforms, the UK business still managed to turn in a very solid performance.

The Asian business was, once again, the jewel in the crown. South East Asia has very favourable demographics. State provision of safety nets such as healthcare is very low and demand for insurance is growing rapidly from a low base. The Pru, via its focus on face to face sales through tied agents, has developed dominant market positions in a number of attractive markets, including Indonesia and Singapore. Over the last five years profits from this division have approximately doubled and now account for around a third of the group total. There is little sign of growth slowing down and the long term prospects for this business remain compelling although of course there are no guarantees.

The only slight disappointment in today's results is the announcement that CEO, Tidjane Thiam, will be stepping down. He did a phenomenal job for the group but we doubt his departure will change much. Pru has already found a replacement, hinting at an internal recruitment. Whoever takes over, we expect the strategy to be the same - in the UK and US the focus will be on generating cash which can be used to fund further growth in Asia.

Rising stock markets have provided a great tailwind for Prudential's business over recent years. It has kept inflows, cash and profits flowing in the UK asset management business (M&G). The US business has also benefitted handsomely. Without going into the gory details, most of the retirement policies Jackson writes are designed to offer some protection to the policyholder against falling markets, but rising markets enable Jackson to keep more of the profits for itself.

So long as stock markets remain favourable, the UK and US operations should continue to act as a cash cow for the group, providing the funds to support further growth in Asia. But if markets take a turn for the worse, investors may start to worry about the sustainability of those profits.

In the long run (10 years plus) stock markets tend to rise, so the Pru's long term prospects look bright, especially given its position in Asia. But in the short to medium term stock markets are very unpredictable and can be volatile. The current valuation suggests investors believe the QE-fuelled stock market rally will continue for a while longer.

[3rd eye] 19/3/2015 11:35

19 Mar 2015 Prudential PLC PRU Societe Generale Buy 1,753.00 1,733.00 1,951.00 1,951.00 Reiterates

SP TARGET 1951p

[3rd eye] 19/3/2015 10:29

19 Mar 2015 Prudential PLC PRU Barclays Capital Overweight 1,751.00 1,733.00 1,797.00 1,868.00 Reiterates

SP TARGET 1868p

[3rd eye] 19/3/2015 09:43

PRU fantastic upward trend been going on now for three years or more. brokers also have higher share price targets.....

[3rd eye] 19/3/2015 09:18

Prudential broker views

Date Broker Recommendation Price Old target price New target price Notes
19 Mar Barclays Capital Overweight 1,750.50 1,797.00 1,868.00 Reiterates
13 Mar Credit Suisse Outperform 1,750.50 1,750.00 1,900.00 Retains
12 Mar Morgan Stanley Overweight 1,750.50 1,736.00 1,815.00 Retains
11 Mar Societe Generale Buy 1,750.50 1,530.00 1,951.00 Reiterates
11 Mar Berenberg Buy 1,750.50 1,800.00 1,800.00 Reiterates

[marmar80] 10/3/2015 11:53

At least I brought some life here :)

[pyemckay] 10/3/2015 10:29

this is not oxus gold board. please move on... no one here is interested

[marmar80] 10/3/2015 09:50

Very quiet board here. Where is the best PRU board?

[gbb483] 14/2/2015 23:13

JeffCranbounre 14 Feb'15 - 15:24 - 139 of 140 0 0 (Filtered)

This idiot needs banning.

[jeffcranbounre] 12/1/2015 15:11

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Prudential #PRU
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[christh] 05/12/2014 11:31

Britain's top share index bounced back in morning trading on Friday, led higher by financial stocks, with investors betting that U.S. jobs data will show signs of strength in the world's biggest economy.

[mike740] 27/11/2014 09:00

27 Nov 2014 Prudential PLC PRU Barclays Capital Overweight 1,519.50 1,519.00 - 1,787.00 Reiterates

SP Target 1787p

[mike740] 20/11/2014 10:01

wrong thread

[mike740] 20/11/2014 08:05

From The Motley Fool today........

Aviva plc, Legal & General Group Plc And Prudential plc Have Completely Thrashed This Market
By Harvey Jones - Wednesday, 19 November, 2014


When I did a portfolio spring clean earlier this year there were two stocks I didn’t even consider dumping: insurance giants Aviva (LSE: AV) and Prudential (LSE: PRU).

I’m glad I held onto them, because both have thrashed the wider stock market, as has the other big name in the life sector, Legal & General Group (LSE: LGEN).

How To Crush The Market
While the FTSE 100 has stagnated over the last 12 months, Aviva is up 25%, L&G is up 16% and the Pru is up 18%.

That’s tremendous performance in what should have been a difficult period, given market stagnation, and Chancellor George Osborne’s radical pensions overhaul, which instantly halved annuity sales.

Pru’s Aim Is True
Pru has smashed analyst expectations again, with double-digit growth year-to-date in both new business profits and annual premiums across its three life businesses in the UK, US and Asia.

Its asset management business also saw net inflows of £9.6bn, including strong performance in the UK.

The Pru share price is up 150% over the last three years, and although its 2.23% dividend yield disappoints, there is plenty of scope for progression on that front.

A Legal Matter
L&G also has momentum on its side, its share price up 136% over three years. Q3 results showed impressive growth in revenues, operating profits, customers and net cash, and a continuing strong return on equity.

Individual annuity sales fell 60%, but the bulk annuity market is more than compensating, while its investment management business saw total assets increase by £82bn to £676bn.

Its 3.8% yield trumps both Prudential and the FTSE 100 average of 3.5%.

Viva Aviva
Aviva is playing catch up with its runaway rivals, but I bought it as a recovery play, and it is steadily getting there. Its net asset value is up 10% year-to-date, new business is up 15% by value and its general insurance combined ratio has improved to 95.9%.

Aviva may lack Prudential’s exposure to fast-growing Asian markets, but its tighter focus on the UK and Europe has served it well. Although its 2.8% yield hardly thrills.

Reassuringly Expensive
All three insurers benefit from low interest rates (which force savers to consider more dynamic alternatives), ageing Western and Asian populations, and the push to encourage private pension provision.

Success comes at a price, however. All three look expensive right now, with L&G and the Pru trading at around 16 times earnings, and Aviva at 24 times.

Given their breakneck growth, that may be a price worth paying.

[mike740] 19/11/2014 13:05

PRU

Commentating on yesterdays Results:

Shore Capital analyst Eamonn Flanagan said:

Prudential’s excellent performance in the first nine months of 2014, with both new business volumes and profits ahead of our expectations and towards the top end of market forecasts, was delivered in the face of significant foreign exchange headwinds and turmoil within Indonesia, one of its key ‘sweet spot’ territories in Asia. The underlying figures at constant forex, growth of 17% in new business profits and 14% in volume, bears testimony to the strength of Prudential’s strategic positioning in the key Asian, US and UK markets, the depth of its franchise across the globe and the continued focus on capital efficiency and profitability over volume. This, in turn, should translate into excellent delivery of IFRS [international financial reporting standards] profits and cash, with investors ultimately benefiting via dividend flows.

Bernstein Research said:

Prudential reported a solid set of numbers at the third quarter, beating consensus, and in line with our estimates. Shorter-term macroeconomic challenges, and Asian currency weakness remains, but underlying earnings progress remains solid. We retain our outperform rating on Prudential [with a price target of] 1650p.

[mike740] 19/11/2014 11:47

19 Nov 2014 Prudential PLC PRU Societe Generale Buy 1,505.75 1,491.00 1,530.00 1,530.00 Reiterates

[mike740] 19/11/2014 10:07

PRU..Prudential stock breaking out to 10 year high A lot of broker backing yesterday. Deustche 19 Nov Buy 1,680.00