Aflac: Institutional Investors’ Activity
Together, the top ten institutional investors in Aflac (AFL) bought 1.8 million shares in the first quarter.
How Prudential’s US Individual Solutions Division Performed
Prudential’s Individual Annuities segment generated adjusted operating income of $519 million in 1Q18 compared to $468 million in 1Q17.
What Analysts Are Saying about Prudential Financial
Of the 18 analysts covering Prudential Financial (PRU) in April 2018, six have recommended “strong buy,” five have recommended “buy,” and seven have recommended “hold.”
What Prudential Has in Mind for US Workplace Solutions
Prudential Financial’s (PRU) US Workplace Solutions division comprises two businesses.
What Prudential’s Planning for Its Investment Management Business
Prudential’s investment management division is deploying money to expand its offerings and reach.
Prudential’s International Insurance Aims to Expand Reach
In 4Q17, Prudential Financial’s (PRU) life planner operations’ adjusted operating income fell to $383 million from $395 million in 4Q16 due to foreign currency exchange, policies, and increased expenses.
Comparing AIG’s Ratings with Other Insurance Players
Of 20 analysts tracking AIG, seven suggested a “strong buy,” nine recommended a “hold,” one suggested a “sell,” and three rated AIG stock as a “buy.”
How Discounted Valuations Affected AIG in 3Q17
On an NTM (next-12-months) basis, American International Group (AIG) has a price-to-earnings ratio of ~11.6x compared to its peers’ average of ~13.9x, which implies lower valuations.
American International Group: New Chief Underwriting Officer
In January 2018, Tom Bolt will become AIG’s chief underwriting officer. Bolt has more than 30 years of experience in the reinsurance and insurance industry.
Behind AIG’s Life Insurance Division
AIG’s Life Insurance division generated other income of $34.0 million in 9M17 versus $43.0 million in 9M16, which implies a substantial 21.0% fall.
AIG’s Group Retirement Business Saw Rise in Premiums and Deposits
In 9M17 and 9M16, American International Group’s (AIG) Group Retirement business garnered $21.0 million in premiums, reflecting no change.
How AIG’s Businesses Performed in 9M17
American International Group’s (AIG) Liability and Financial Lines business saw a decline in net premiums earned to $6.5 billion in 9M17 from $8.1 billion in 9M16, reflecting a 20.0% fall.
Analyzing Prudential’s Valuations after 3Q17
Prudential Financial declared a quarterly dividend of $0.75 per share on November 14, 2017. This quarterly dividend would be paid on December 14, 2017.
Prudential’s Gibraltar Life Division’s Adjusted Operating Income Rose
Prudential’s Gibraltar Life and Other operations witnessed a marginal decline in its revenues from ~$2.9 billion in 3Q16 to ~$2.8 billion in 3Q17.
Behind Prudential’s Individual Life Insurance Division
Prudential Financial’s (PRU) Individual Life Insurance division reported adjusted operating income of $150.0 million in 3Q17 compared to $111.0 million in 3Q16.
Behind Prudential’s Individual Annuities Division
Prudential’s Individual Annuities division reported gross sales of $1.3 billion in 3Q17 compared to $2.1 billion in 3Q16.
Prudential Financial Sees a Marginal Decline in Total Revenues
Prudential Financial (PRU) reported a marginal decline in its total revenues from $16.9 billion in 3Q16 to $16.3 billion in 3Q17, which is primarily due to declining premiums.
Understanding the Total Asset Balances of Insurance Giants
As of December 31, 2016, Chubb (CB) had total assets totaling $159.7 billion, compared with its total assets of $162.9 billion as of June 30, 2017.
Dividend Yield of Aflac
This year marks Aflac’s (AFL) 35th successive year of dividend growth. But its operating cash flow has shown a declining trend over the years.
Financial Markets and Reinsurance Impact Life Insurance Growth
The US life insurance industry is the largest in the world. It garners a total direct written premium of above $600 billion annually.
UMBWX’s Volatility Is Low, but Other Key Metrics Are Shaky
The Scout International Fund (UMBWX) is invested in stocks of companies like Syngenta (SYT), Aflac (AFL), ABB (ABB), Barclays (BCS), and Novartis (NVS).
Insurance Stocks: Power Play on Rising Interest Rates
Interest rates are a key performance driver for life insurance stocks. Rates affect margins, hedging costs, and product sales.
Magnetar Eliminates Exposure to MetLife
MetLife (MET) is a global insurance company that operates in several countries around the world. It reported operating earnings of $1.6 billion in 4Q14.
A Closer Look at Prudential Financial’s Share Price Performance
Life insurers have underperformed the market due to negative news regarding macroeconomic situations, low interest rates, and regulatory uncertainties.
Prudential Financial Enjoys Strong Solvency Ratios
Prudential has comfortable solvency positions in its subsidiaries. In the US, Prudential Insurance’s solvency ratio was well above the target ratio of 400%.
Prudential’s International Business Sees Strong Profitability
Prudential’s International Insurance business saw improved profitability after the acquisition of AIG Star and AIG Edison in 2011.
Stable Top-Line Evolution in Prudential’s International Business
Prudential’s third-party distribution channels provide access to a larger customer base, supplementing its captive distribution channels.
Japan: An Attractive Insurance Market for Prudential Financial
Since the Japanese market is mature and characterized by competitive pricing, Prudential competes in this market through customer service and distribution.
Acquisitions Drive Growth in Prudential’s International Business
Setting up business operations in fast-growing emerging markets remains a key trend among insurers who primarily operate in mature markets.
Prudential Financial’s US Distribution Network
Prudential’s customer base includes over 30 million individual customers and 25,000 corporate clients, consisting of more than half of the Fortune 500 list.
MetLife’s return on equity within target range
MetLife’s return on equity evolution shows recovery from 2008–2009 levels, although it has yet to reach that of the pre-crisis periods.
MetLife develops its employee benefits business across the globe
Latin America is a major contributor to MetLife’s business unit, with nearly half the revenue. EMEA follows, with a share of revenues of ~40% in 2013.
MetLife is delivering well in the strategy front
MetLife targeted $1 billion in expense savings, which the company is on track to achieve in 2015. Cumulative expense savings in 2014 exceeded $910 million.
MetLife’s Asia business show growth prospects
Contributing ~20% to the group’s operating earnings, the Asia business segment remains a key profit driver of MetLife.
MetLife’s US Retail business becomes a profitable franchise
MetLife is working to develop direct sales channels, which would reduce the share of agent commissions in operating costs.
MetLife is a leading player in the US insurance industry
MetLife intends to grow its retail business and expects low single-digit growth in the long term.
MetLife – A globally diversified insurance company
MetLife is a market leader in the US and the largest life insurer in Mexico and Chile. It is among the leading players in Japan, Korea, and Poland.
How valuation of insurance companies works
Financial market movements not only impact income from invested assets, but also the value of assets carried at fair value on an insurer’s balance sheet.
An insurer’s investments: Dominated by debt securities
A large portion of an insurer’s balance sheet contains lower-risk assets such as government bonds and high-grade corporate bonds.
What impacts an insurer’s profits?
In 2013, the top ten life and health insurance companies had just above 50% market share in terms of direct premiums written.
How key drivers impact insurance sales
For P&C insurers such as AIG and ACE, various mandatory requirements may drive sales of vehicle, workers’ compensation, and homeowners insurance.
Life insurance, P&C insurance, and reinsurance
P&C products have commoditized characteristics, resulting in sharp competition in the market and business cycles. AIG and ACE are key players in this space.