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.
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.”
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.
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.
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.
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.
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.
Aflac: Institutional Investors’ Activity
Together, the top ten institutional investors in Aflac (AFL) bought 1.8 million shares in the first quarter.
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.
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).
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.
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 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 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 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.