Strong balance sheet

Prudential Financial (PRU) estimates its balance sheet capital capacity to be $757 billion as of December 31, 2015. The company’s cash and short-term investments, excluding outstanding commercial paper, stood at $3.8 billion.

The company has maintained $1.3 billion in excess liquidity to repay maturing operating debt, to fund operating needs, and to deploy overtime for strategic and capital management purposes.

Why Prudential’s Deleveraging Is Beneficial in Weaker Markets

AIG (AIG) has a price-to-book value ratio of 0.8x, and ACE (ACE) has a price-to-book value ratio of 1.1x. AIG, ACE, Allstate (ALL), and Chubb (CB) form 0.63% of the iShares MSCI ACWI ETF (ACWI).

Deleveraging

Prudential Financial’s operations fell in 4Q15 due to lower insurance business in the US market and an unfavorable exchange rate. In 2015, the company deployed more than $2 billion in dividends and share repurchases. The capital generated by its core operations expanded in 4Q15, backed by positive impact from interest rates and lower benefits and expenses.

Prudential’s long-term debt-to-equity ratio fell to 33% as of December 31, 2015, compared to 35% as of December 31, 2014.

Capital requirements

An insurance company’s capital requirements are stipulated by regulatory bodies. Insurance companies must maintain capital in the form of liquid assets to pay unexpected large claims. In the United States, insurers are required to maintain risk-based capital.

The risk-based capital ratio is calculated as the ratio of capital available to an insurer to the required capital. Prudential Financial’s balance sheet and strong risk management have led to a smooth expansion of its global operations. Its risk-based capital ratio as of December 31, 2015, was 5x, above the target of 4x.

Latest articles

After remaining tepid for the first four months of the year, gold prices have taken off in a big way. The initial impetus was provided by a tweet made by President Donald Trump on May 5, which revived trade tensions in a big way.

20 Jun

How Are Charter’s Revenues Trending in 2019?

WRITTEN BY Ambrish Shah

In the first quarter, Charter Communications (CHTR) reported total revenues of $11.2 billion—a rise of 5.2% year-over-year and $7 million ahead of the consensus estimate.

This morning before the market opened, Tesla (TSLA) was trading on a negative note despite a sharp rise in index futures. As of 9:10 AM ET, Tesla stock had fallen 1.2% in the pre-market session to $234.74 after Goldman Sachs cut the target price on the company by about 21%.

The US-China trade war has already given a scare to Apple’s (AAPL) investors vis-à-vis the possibility of a 25% tariff on Apple goods being imported from its Chinese facilities. As a result, Apple might be considering shifting its plants out of China.

Yesterday, Greenlane Holdings (GNLN) fell a whopping 17.1%. The stock has now fallen 28% this month, and it hit its all-time low yesterday. Greenlane Holdings listed in April and priced its IPO at $17 per share. However, since the stock surged more than 25% after its listing, it has been a sorry story for Greenlane Holdings investors.

Yesterday, Mexico ratified the USMCA. The agreement was negotiated last year and would replace the 25-year-old NAFTA. The United States and Canada are yet to ratify the agreement. Renegotiating NAFTA was among Trump’s prominent campaign promises.

172.31.71.127