EUR 850.00 For Business Accounts Only

Morningstar | PUK Updated Forecasts and Estimates from 06 Jun 2019

Prudential is a strong operator in two of its three core markets. Asia is its long-term growth focus and the United States is the largest producer of operating profit, providing the highest operating return on equity. The business has asset-management units in each of these geographies and has recently exited United Kingdom. bulk annuities and ceased writing new U.K. individual annuities business.Its U.S. business, Jackson National Life, focuses almost exclusively on variable annuities. This business has been built by strong management and through execution discipline that have enabled it to take advantage of weakened competitor positions when adverse underwriting has appeared. This has been boosted by the business’ unique product offering, which has enabled it to not only serve distributors well, but also meet the needs of customers. The business offers a simple variable annuity, enabling policyholders to pick and choose their riders to build a policy that suits their individual needs. Although Prudential has seen some pressure on variable annuity sales, we expect these to normalise as the longer-term demand for fee-based business continues to grow to meet retirement needs.In Asia, the business focuses on health and protection with a unit-linked chassis. We expect Prudential will focus on China, and expanding in more cities across the Philippines and Vietnam. This will be driven by PCA’s partnership with Citic in China. While we have some concerns over changes to credit card payments in Hong Kong and what this means for mainland Chinese customers purchasing in the region, we think this is a short-term influence that will normalise as the business extends its reach on the mainland.The U.K. is a much smaller part of Prudential and is now an investment bond and pensions offering that is complemented by M&G asset management. This unit has GBP 275.5 billion in fixed income and equities across continental Europe and U.K. for retail and institutional investors.