frog_in_a_tree
12 Aug 2018
Lloyds interest in Prudential? I read in the Sunday Times that Lloyds may be looking at Prudential/M&G. This could be a good fit with the bank’s current infrastructure. Any views? Frog in a tree
tradingup
01 Apr 2018
Re: Why the fall? HE- thanks for helpful informative post.
Hydrogen Economy
31 Mar 2018
Re: Why the fall? LindyFall of 60p in the day, 32.5p of that is down to going XD, the rest is likely a combination of follow through from the XD fall and position closing for the 4 day weekend/end of quarter, which fits with the ~ 20p fall in the last 15 mins of trading with high volume. I hold a fair chunk of these and might be temped to add if it gets much lower but dyorH2
Lindy Lou Lou
30 Mar 2018
Why the fall? Such an upsurge last week and now the lowest it's been in a long while. Anyone have any idea?
The Dutchman
15 Mar 2018
Re: Split and Annuity Sale Hydrogen, I agree it seems a very odd split indeed. Why not a 3-way split, by demerging; M&G, and Africa/ Asia ( growth areas surely) and leave the rest in the Old Pru.Annuities - this also seems odd, with Aviva recently recognising a gain on their annuity business due to reductions in life expectancy, but Pru saying they will take a loss on selling-- why? possibly because their view of life expectancy was already lower than Aviva's.
sound money
14 Mar 2018
Re: 5% UP Trading sell. Bought @17.86 sold @ 19.17.Core holding intact.
Hydrogen Economy
14 Mar 2018
Split and Annuity Sale Market likes today's news, results, split and the sale of the annuity portfolio.I’m not so sure about the split or the annuity sale.The split separates US Asia and Africa from UK and European M&G Prudential Business. Inclusion of US with Asia Africa seems odd, Mike Wells gave some explanation around opportunities in Pensions in US & Asia and demographic difference which sounded odd. It feels that the two parts being less geographically diversified, potential returns in Asia likely will be higher, but the risks will also increase, could be a bumpier ride.Timing is unclear as there are various approvals needed, I worry there will be uncertainty around the companies for some time and no doubt a lot of advisers to support. It will be several years before we get clear picture of the accounts of these two companies uncluttered by large one-offs.“The Group will look to realize efficiencies to benefit the two businesses post demerger” Funny that, they would claim the same if this was a merger. Establishing and paying two Corporate management structures, HQs etc. no doubt puts a broad smile of the faces for those jockeying for the newly duplicated positions, my smile is more bemused. The annuity sale is to de-risk, but the FY results state “Based on asset and liability values as at 31 December 2017, the transaction is estimated to give rise to a pre-tax IFRS loss of around £500 million in the first half of 2018, alongside the de-risking being achieved.” I’m no expert, but I wonder whether they would not be better holding this business in a rising interest rate environment. “The capital benefit of this transaction will be retained within the Group to support the demerger process.” I hope this is not a reflection of the costs of demerger!I have long been a fan of PRU’s Asia strategy and maybe under this structure it will move that up a notch, I’m willing to hold and see how this plays out and probably hold Prudential long term. CNBC asked Mike Wells why demerge M&G not go for a trade sale, he went on about shareholders having the option to sell or hold each of the demerged entities but in the current environment with M&A in European Life Insurance area I think that might be a better option. I’m not yet sure if M&G Prudential (UK & Europe) would be a business I’d be wanting to hold.Don’t want to sound churlish with the stock up over 6% as I write and nearly 5% of my wad invested here but the FY results are probably account for a chunk of the rise, I’ll be watching anxiously how this plays out after the sugar rush wears off.H2
picstloup
14 Mar 2018
Re: 5% UP On new of the breakup. Think £20 is possible in very short order. Had been meaning to top up at ~£18 but didn't. Probably still worth it now.
Hydrogen Economy
08 Feb 2018
Re: UP SM"Still cheap. Even more so after the sell.Doubled my holding. This is a trading buy, will sell into rally. Not yet."I agree this is good value given the growth potential. I have also added several tranches in the recent turmoil, now close to my biggest holding, but I'm in this for the long term, if they perform as expected in Asia and other EMs this should be a long running success story.Just listening to Marcus Rivaldi on CNBC (12 Capital and formerly Morgan Stanley European Insurance Research). He was discussing the Softback approach to Swiss Re and indicated more consolidation to come in the sector. He highlighted Pru as a top pick having best growth potential due to Asian exposure. H2
sound money
07 Feb 2018
UP Still cheap. Even more so after the sell.Doubled my holding. This is a trading buy, will sell into rally. Not yet.M
II Editor
31 Jan 2018
NEW ARTICLE: Capita punished for brutal 'kitchen sink' job "As "kitchen sinking" goes, today's profits downgrade, rights issue and dividend suspension from new LSE:CPI:Capita boss Jonathan Lewis will be viewed as one of the biggest of recent corporate times.Capita shares tanked by a spectacular 45% to ..."[link]
II Editor
24 Dec 2017
NEW ARTICLE: Six share tips for 2018 "Investors would typically be happy with share prices at a record high and positive returns from domestic stockmarkets. However, the UK's single-digit gains in 2017 were dwarfed by stellar returns in the US and the performance of alternative ..."[link]
II Editor
16 Nov 2017
NEW ARTICLE: Prudential results trigger fresh assault on £19 "The case for LSE
RUrudential's shares trading above the £20 mark grew louder today after another impressive set of trading figures from the insurance giant. There's no denying that the Pru is in a sweet trading spot at the moment, particularly ..."[link]
sound money
16 Nov 2017
Re: Update Without doubt undervalued by the market.M
Hydrogen Economy
16 Nov 2017
Update RNS update in conjunction with Investor Conference looks very positive - a few key points pulled out below, full RNS worth reading.H2 Asia -New business profit increased 15 per cent (24 per cent on an actual exchange rate basis) .. as a result of higher sales volumes, a richer health and protection mix and the overall beneficial effect of higher interest rates. The performance remains broad-based, with at least double-digit growth in seven countries4, including China, Hong Kong and Singapore, highlighting the strength of the regional portfolio. In the first nine months, APE sales increased by 5 per cent overall (14 per cent on an actual exchange rate basis) .... Outside Hong Kong, we have delivered diversified sales growth of 24 per cent. In the US, Jackson's new business profit increased 17 per cent (28 per cent on an actual exchange rate basis) to £619 million in the first nine months, primarily reflecting the benefit of higher interest rates compared to the prior year. .... Jackson's market-leading variable annuity product proposition positions the business well for new longer-term growth opportunities in the sizeable fee-based adviser market. In the UK & Europe, M&G Prudential has delivered external asset management net inflows of £9.9 billion in the first nine months across a broad range of Wholesale and Direct, and Institutional asset strategies. M&G Prudential, formed by the combination of our UK businesses, will leverage its scale, financial strength, and complementary product and distribution capabilities to enhance the development of capital-light, digitally enabled, customer-focused solutions. The integration of these businesses is progressing according to plan. The estimated Group shareholder Solvency II surplus7 at 30 September 2017 was £12.8 billion, equivalent to a cover ratio of 201 per cent (31 December 2016: £12.5 billion, equivalent to a cover ratio of 201 per cent).
