Manulife Financial Corp
Analysts’ ‘Hold’ Ratings on Prudential Financial amid Lower Valuations
Prudential Financial (PRU) is covered by 17 analysts. Four of these analysts rated the stock as a “strong buy,” and two analysts gave a “buy” rating on the stock.
Strong Balance Sheets Will Likely Support Life Insurers’ Growth
Prudential Financial’s (PRU) balance sheet stood at $757 billion in 2015. It was a marginal contraction from $767 billion in the previous year.
What Lies Ahead for Life Insurance Players in 2016?
US life insurance players entered 2016 with moderate momentum, improved capital and liquidity, and an expectation of higher investment income.
Allianz in 1Q15: Life and Health Insurance Most Profitable
The gross premiums written in Life and Health insurance increased by 9.7% when compared with the first quarter of the previous year, reaching 18.82 billion euros.
Insurance Divisions Buoy Allianz Valuation in 1Q15
The company’s valuation has improved in line with the sector, which was trading at 9x on a forward-earning basis in 2014.
Allianz Reports 11% Revenue Growth Backed by Insurance Business
Allianz Group offer property casualty insurance, life and health insurance, and asset management products and services in over 70 countries. The company’s major operations are in Europe.
Gauging Prudential Financial’s Valuation
Among its peers, Prudential remains in the middle of the valuation range, with companies like MetLife and Lincoln Financial showing a lower multiple.
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.
MetLife’s valuation is close to historical mean
Over the last four years, MetLife’s price ranged between 0.5x–1.0x its book value per share. Its current price-to-book value multiple is ~0.8x.
MetLife pays consistent dividends
After several years of flat dividends (74 cents per share on an annual basis), MetLife increased its payout in 2Q13, as well as in the same quarter of 2014.
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.
An investor’s introduction to Lockheed Martin Corporation
In 2013, Lockheed Martin clocked revenues of $45.4 billion. Of its revenues, 82% come from the U.S. government, around 17% from international customers, and 1% from other U.S. commercial customers.