|Bid||31.18 x 1000|
|Ask||31.21 x 800|
|Day's range||31.11 - 31.72|
|52-week range||15.68 - 44.13|
|Beta (5Y monthly)||1.14|
|PE ratio (TTM)||51.90|
|Forward dividend & yield||0.92 (2.92%)|
|Ex-dividend date||26 Mar 2020|
|1y target est||36.30|
Let's see if Prudential Limited (PUK) stock is a good choice for value-oriented investors right now from multiple angles.
(Bloomberg Opinion) -- It’s time for someone else to have a go at one of the toughest jobs in European finance: deciding the future of Aviva Plc.The U.K. insurer’s pick of Amanda Blanc as chief executive officer has brought a leader with the necessary sense of urgency. The appointment of a woman to such a prominent leadership role at a European financial institution should be celebrated too, not least given it’s mainly men who enter the actuarial profession.Aviva is an incoherent global empire with life insurance, general (home and motor) insurance and asset management operations. Adjusted for currency movements, the shares have roughly halved in value in the last five years, against a European sector down 6%. They are where they were in 2012, trading on just six times expected earnings, a discount of 20% to peers Legal & General Group Plc and 45% to Prudential Plc.Against that backdrop, this latest strategic reset thankfully sounds more substantial than what’s gone before. A former executive at Zurich Insurance Group AG and Axa SA, Blanc brings an outsider’s perspective to Aviva’s problems. Since May, there’s also been an outsider in the chairman’s seat.There are no big-bang fixes without snags. The weak share price precludes a transformative merger or acquisition. Some investors want a breakup, potentially separating Aviva’s life and general insurance pieces. Unfortunately, that would end the capital benefits in combining the two.But there are moves that could work over time, so Blanc’s promise of an end to “business as usual” is unlikely to be a hollow claim. Slaying sacred cows could mean gradually selling off some of Aviva’s businesses to buyers who put more value on them than what’s implied by Aviva’s lowly 11 billion-pound ($14 billion) market capitalization.For instance, there’s no need for the company to own its own fund management unit when it can buy in those services externally.The international operations could be cut back too. Analysts at Barclays Plc last year argued Aviva should retrench to its domestic business and use the proceeds from overseas disposals to cut debt and return cash to shareholders. The resulting payout today may be smaller than the 10 billion pounds mooted at the time. But the logic of creating a simpler, U.K.-focused Aviva that’s easier to manage, and easier to understand, remains.The difficult question is why Aviva hasn’t attracted an activist investor when some of its rivals have. The likely answer is that Aviva is just next on the list. There are worrying alternative explanations. Perhaps agitators are struggling to construct a campaign arguing that management is neglecting to take some obvious action that would boost the shares — such as the U.S./Asia split Dan Loeb sought at Prudential — because they know no such silver bullet exists. Worse, perhaps they don’t see much upside from shaking up Aviva, whereas Elliott Management Corp. reckons NN Group NV is worth almost double its share price. Blanc won't want any activists on her back, but she'll also want to quickly dispel the notion that Aviva isn't worth the bother.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Jackson National Life Insurance Company® (Jackson®) and the Insured Retirement Institute (IRI) today announced results from a new research study that was fielded in the midst of the COVID-19 global pandemic. Conducted between April 8-17, 2020, the online survey found more than half (55%) of financial professionals believe 25% or more of their client base is at risk of running out of money during retirement. Conversely, a mere 4% report none of their clients are at risk, illustrating the vast majority of financial professionals feel at least one or more of their clients are in danger of exhausting their retirement savings.
Prudential reached a reinsurance deal to sell its $500 million stake in U.S. business Jackson to a leading retirement services company Athene Holding.
Jackson National Life Insurance Company® (Jackson®) today announced it has entered into an agreement with Athene Holding Ltd. (Athene) (NYSE: ATH), a leading provider of retirement savings products, to fully reinsure $27.6 billion¹ of Jackson’s in-force book of fixed and fixed index annuity liabilities in exchange for approximately $1.25 billion in ceding commission.
(Bloomberg Opinion) -- As this dismally depressing year approaches its mid-point, a winner is starting to emerge from the pack of European fund managers. And while sheer scale and a diverse business model have helped DWS Group GmbH weather the first phase of this pandemic better than its peers, the firm’s ongoing frugality is what really sets it apart.The shares of asset management companies typically mirror the broader stock market, rising and falling as a proxy for equities generally. Before the novel coronavirus outbreak trashed markets toward the end of February, DWS was handily leading its rivals. Since equities have recovered, the Frankfurt-based company has rebounded to become the only European asset manager in positive territory for the year.Cost is one of the few variables a fund-management company is able to control, and investors are rewarding DWS, which manages 700 billion euros ($791 billion), for its focus on frugality. Chief Executive Officer Asoka Woehrmann has been on a cost-cutting drive since his appointment as head of the company in October 2018, seven months after Deutsche Bank AG sold and listed about a fifth of the business, retaining an 80% stake. Earlier this month, Woehrmann shrank his management board to six members from eight as part of efforts to save at least 150 million euros a year.For asset managers’ cost-to-income ratios, the direction of travel matters at least as much as the absolute level. DWS reduced its key measure to 65.8% by the end of the first quarter, down from 70.9% at the end of 2018 and more than 74% in mid-2018. It promises more to come. “We can still expand our savings efforts,” DWS Chief Financial Officer Claire Peel said in an interview published by Boersen-Zeitung last week.At the asset-management business of M&G Plc, which oversees 323 billion pounds ($407 billion), the cost-to-income ratio worsened to 63% at the end of last year from 59% a year earlier. Some of those additional expenses came as it adjusted to life as a stand-alone company, after being spun out from Prudential Plc in October.M&G has pledged to cut spending by an annual 145 million pounds in the next few years. In March, the London-based firm introduced a voluntary redundancy program aimed at trimming personnel expenses by 10% this year, but the virus may have blown that off track.Amundi SA, Europe’s biggest asset manager, with 1.53 trillion euros of assets, remains the market leader in stinginess, with its cost-to-income dropping below 50% at the end of March, down from an already impressive 53% at the end of 2018. But that leaves limited scope for further savings at the Paris-based company.Both DWS and Amundi have sizable suites of index-tracking products available, enabling them to ride the wave of investor enthusiasm for lower-cost passive products while their peers are stuck trying to extol the benefits of active strategies. As I wrote in May, stock pickers were unable to beat their benchmarks in either March or the first quarter as a whole — a period of market convulsions that should have been the time for active management to shine. It’s a lackluster performance that will only exacerbate the shift to index tracking.The fund management industry has faced straitened circumstances for several years. This year’s share-price action suggests shareholders will continue to favor those firms best able to play the parsimony game. With the income side of the equation looking as fragile as ever, more belt-tightening lies ahead.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Prudential (PRU) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.
For many investors, the main point of stock picking is to generate higher returns than the overall market. But its...
Jackson National Life Insurance Company® (Jackson®) today announced its full-year financial results, generating $3 billion in IFRS pre-tax operating income2 in 2019, an increase of 22 percent over 2018 and the highest in company history. Jackson also reported $22.2 billion in total sales and deposits, noting significant growth in fixed and fixed index annuity sales.
Jackson National Life Insurance Company® (Jackson®) was recognized with four awards from Service Quality Measurement Group, Inc. (SQM)1 for excellence in contact center service in 2019. For the first time, Jackson was awarded SQM’s top honor — Contact Center of the Year — for earning the highest combined ratings for customer and employee experience among a field of leading call centers from across North America.
(Bloomberg Opinion) -- Dan Loeb’s Third Point LLC says it has a history of working constructively with boards to promote the success of their companies. The activist’s latest goal seems to involve removing the board of Prudential Plc entirely, and dismantling the head office around it, as part of a breakup of the $48 billion insurer.That may not be as hard as it sounds.Once focused on Britain, Prudential has transformed into a large Asian insurer with a smaller U.S. business attached. Its shares suffer under a stark valuation discount to Hong Kong-listed peer AIA Group Ltd., and Loeb has set out a plausible explanation for why. The reason, he says, is that the Asian side needs capital to grow, but competes with shareholders for dividends. Likewise, the U.S. business would be better off conserving cash in support of its own capital strength. Meanwhile, most investors don’t want to invest in an Asian-U.S. hybrid insurer.The remedy sounds simple: Split Prudential into separate U.S. and Asian businesses with their own stock listings and dividend policies. The Asian shares would probably command a much higher valuation than whole the group does now, providing an acquisition currency that would be a cheap source of growth capital. At the same time, scrapping the conglomerate structure would eliminate the need for a costly corporate center based in London.None of this is likely to be a huge surprise to Prudential’s directors. The board has already been simplifying the company, mainly by spinning off the M&G Plc asset management business. That move has failed to address the valuation gap, so the next logical step would be to jettison the U.S. subsidiary and become a pure Asia play. Prudential’s chairman, Paul Manduca, is retiring next year anyway, and Chief Executive Officer Mike Wells has been in the role for five years. Manduca’s successor, banker and former government minister Shriti Vadera, has a chance to be radical.The real opponents to Loeb’s ideas are more likely to be found among Prudential’s long-term investors. Third Point is a new arrival taking on a longstanding problem. But Prudential has a large number of U.K. investors whose own narrow interests may be served by keeping it in its current form, paying high dividends via a London-listed share. Recall that consumer giant Unilever NV encountered huge resistance to an attempt to simplify its structure in 2018, while plumbing group Ferguson Plc is moving with extreme care about a possible re-domicile for the same reason.Loeb argues Prudential in two pieces would be worth twice what it is today. He may be right, but if a breakup involves a dividend cut along the way, it won’t be plain sailing.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Prudential plc (PUK) is looking like an interesting pick from a technical perspective, as the company is seeing favorable trends on the moving average crossover front.
Today, we'll introduce the concept of the P/E ratio for those who are learning about investing. We'll show how you can...