Prudential PLC ADRPUK

Morningstar Rating

Stock Research and Analysis

by Alan Rambaldini

Once a sprawling financial empire, in recent years Prudential PLC has narrowed its focus to serving the retirement markets in the United Kingdom, the United States, and Asia. Although we applaud the emphasis on high-return businesses such as asset management, Read more

Bulls Say

Prudential is in an enviable position to capitalize on the growing Asian market's increasingly attractive demographics.

Jackson National Life is a low-cost operator in the United States, with impressive product innovation.

Prudential's multichannel distribution and widening product mix should help the firm increase share in the consolidating U.K. market. Read more

Bears Say

Margins may come under pressure as competition heats up in Asia and Prudential's U.K. product mix changes in favor of lower-margin products.

Historically, Prudential's cash flows from operations have been inconsistent, and they could find themselves needing to raise capital at the wrong time.

Prudential is highly dependent on investment income for its profitability.

Exposure to many developing markets in Asia creates foreign exchange and geopolitical risk for Prudential. Read more

Strategy

Prudential targets the attractive demographics of the retired or approaching-retirement global population by cross-selling insurance and savings products. It operates a decentralized business platform Read more

Management

Tidjane Thiam, Prudential PLC's CFO since 2007, has recently succeeded former CEO Mark Tucker after four years in the top spot. Prior to joining the firm, Thiam worked for five years at rival Aviva. We don't expect any significant changes in direction Read more

Profile

With operations in the U.K., U.S., and Asia, Prudential PLC is truly an international financial-services giant. It operates under its own name in the U.K. and Asia, and Read more

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