Prudential Financial Inc
Hyman Bullish on Financials, Investors Upbeat about Rate Hike
Trump’s domestic growth-friendly policies Returns have been surging for the financial sector (XLF) (VFH) as the market expects to benefit from the Trump administration’s projected policies. Markets are highly confident with the expectation of more rate hikes, for example, and of widespread deregulation. Banks’ earnings have thus been getting a huge boost, and the market has been […]
A Look at the PGIM Ultra-Short Bond ETF
PGIM, which distributes Prudential Financial’s (PRU) retail products, has introduced the PGIM Ultra-Short Bond ETF, an actively managed fund focusing on capital appreciation and income generation.
UK Services PMI, Draghi’s Reassurance Lifted EWU by 0.06%
Mario Draghi, president of the European Central Bank, reaffirmed the ECB’s plan to provide a fresh monetary stimulus in December to boost inflation in the region if needed.
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.”
UK Stock Market Upbeat as EWU Closes with a Gain of 2.31%
The UK stock market cheered owing to positive rallies across the Asian and US stock markets. The iShares MSCI United Kingdom ETF (EWU) rose by 2.31%.
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.
Icahn Identifies a Key Motivation behind the Buyback Spree in the US
Carl Icahn is one of the first activist investors to voice his opinion against share buybacks. He believes that companies are increasingly putting money into buybacks instead of using them for much-needed capital improvements.
How insurers manage their capital requirements
A company managing higher risk products must maintain a higher level of minimum capital compared to a company with a relatively lower level of risk.
How investment income drives profit
The impact of interest rate movements is lower in the P&C segment, as their products can be repriced annually to keep in line with interest rate movements.
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.
The US insurance industry: Largest in the world
Insurance premiums have grown at a modest pace after a dip in 2009 due to the financial crisis, which the industry was able to navigate.
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.
The GE Fraud Saga: More Pain as Fitch Issues LTC Report
Fitch Ratings’ annual report on long-term care insurers ranked GE second on its list of the 16 riskiest LTC insurers. GE stock fell 3.18% on the news.
What’s behind Berkshire Hathaway’s 1Q18 Losses?
Berkshire Hathaway announced its 1Q18 results on May 5. Buffett’s investment conglomerate posted a net loss of $1.1 billion, or $692 per share.
Prudential Financial: Top Institutional Investors
The Vanguard Group, Wellington Management, and BlackRock Institutional Trust are the top three institutional investors in Prudential Financial.
Lower Claims, Pricing, Reinsurance Key to Berkshire’s Insurance
Berkshire Hathaway’s (BRK.B) Insurance segment saw subdued growth in the second half of 2017 on reinsurance losses.
How Prudential Financial’s Valuations Stack Up Compared to Peers
The price-to-book ratio of Prudential Financial (PRU) stood at 0.85x on an NTM (next-12-month) basis, which is lower than the peer average of 1.22x.
Berkshire’s Insurance Segment Benefits From Fewer Claims
In 1Q18, Berkshire Hathaway’s (BRK.B) insurance revenue fell YoY (year-over-year) to $14.6 billion from $22.9 billion.
What to Expect from Berkshire Hathaway’s 1Q18 Earnings
In this series, we’ll look into Berkshire Hathaway’s 1Q18 expected divisional performance along with a variety of other factors.
AIG Canada Made the Top 100 Employers List
AIG’s Canadian business unit, AIG Canada, announced on February 13, 2018, that it had made the list of Canada’s Top 100 Employers of the younger generation.
What Are Prudential Financial’s Valuations?
Prudential Financial’s (PRU) price-to-earnings ratio is 8.93x on an NTM (next-12-month). The average for its peer group is 11.0x.
Underwriting May Help Berkshire’s Insurance Division
Claims could subside The insurance sector (IYF) faced headwinds and losses in 3Q17 due to hurricanes across the US East Coast. Berkshire Hathaway (BRK.B), AIG (AIG), Prudential Financial (PRU), MetLife (MET), and other reinsurers faced headwinds and underwriting losses in 3Q17, which were partially offset by gains from debt and equity investments. In 4Q17, claims are […]
Insurance Claims Dent Berkshire’s Profitability in 2017
Berkshire Hathaway (BRK.B) reported losses before tax of $963 million in 3Q17 compared to earnings before taxes of $1.4 billion in the corresponding period last year.
What Berkshire’s Insurance Business Expects for 3Q17
Berkshire Hathaway Insurance segment is expected to see a YoY rise in revenues due to the sale of policies in automotive, property, and reinsurance offerings.
Berkshire Hathaway’s Insurance: What to Expect amid Rising Claims
Berkshire Hathaway (BRK.B) saw subdued profits in its Insurance segment in 2Q17, mainly due to higher claims. The trend is set to get stronger in the second half of 2017
Insurance after Harvey and Irma
Hurricane Harvey devastated Houston in late August 2017, causing damages totaling $180 billion, but Irma could be even more expensive.
These Insurance Giants Have Seen Declines in Their Total Revenues
In 1H17, Prudential Financial (PRU) generated total revenues of $27.1 billion—a year-over-year decline of ~5.8%.
What Led to Chubb’s Premium Valuations?
Wall Street analysts have given a one-year price target of $157.53 on Chubb (CB), an increase of 11.4% from the current price level.
Why Chubb’s Global Reinsurance Division’s Income Rose
Chubb’s (CB) global reinsurance division has witnessed a substantial fall in its net premiums written in 2Q17 as compared to 2Q16.
How Chubb’s North American Commercial Property Segment Performed
Chubb’s (CB) North America Commercial Property and Casualty Insurance division witnessed a marginal fall in its net premiums written in 2Q17 as compared to 2Q16.
Chubb Beat EPS Estimates but Missed Revenue Estimates
Chubb (CB) reported earnings per share (or EPS) of $2.50 in 2Q17, which beat Wall Street analyst estimates of $2.47.
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.
Prudential’s Discounted Valuations in 2Q17
Wall Street analysts recommended a one-year price target of $116.07 per share on Prudential Financial (PRU), reflecting an increase of ~14.1% from the current price.
A Look at Prudential Financial’s Dividends in 2017
In 2016, Prudential Financial (PRU) declared total dividends of $2.80 per share. In 2017, the company is expected to declare total dividends of $3.06 per share.
Insights into Prudential’s International Insurance Division
Prudential Financial’s (PRU) Life Planner division experienced an increase in its earnings in 2Q17 compared to 2Q16.
Understanding Prudential’s Group Insurance and Individual Life Earnings
In 2Q17, on the basis of annualized new business premiums, sales in Prudential’s Individual Life business stood at $153 million, reflecting a marginal decline of ~3.8% year-over-year.
Why Earnings Rose in Prudential’s Asset Management Business
In 2Q17, earnings from Prudential’s asset management business stood at $218 million compared to $207 million in 2Q16.
Analyzing Prudential’s Individual Annuities and Retirement Businesses
After excluding market-driven and discrete items, earnings from Prudential Financial’s individual annuities stood at $512 million in 2Q17 compared to $375 million in 2Q16.
Prudential Misses Earnings Estimates, Net Income Falls Year-over-Year
In 2Q17, Prudential Financial (PRU) reported 2Q17 net income of $491 million compared to $921 million in 2Q16. Its 2Q17 earnings per share of $2.09 missed the estimate of $2.70.
Prudential Rewarded Shareholders with $930 Million in 3Q16
In 3Q16, the company returned $930.0 million to shareholders in the form of dividends and buybacks.
Prudential’s Valuations Are Weak on 2Q16 Operating Performance
Prudential’s stock has risen by 16% in the past six months, mainly due to expectations of improved fundamentals and higher investment and underwriting income.
Prudential Returns $700 Million in Payouts to Shareholders
Prudential Financial has been very consistent with dividend payouts to shareholders, which makes it a very strong prospect for long-term value investors.
Prudential Saw a Fall in 2Q16 on Lower US Sales
Prudential Financial (PRU) reported its 2Q16 earnings results on August 3, 2016. It reported adjusted operating income per share of $1.84 in the quarter.
Prudential Remains Prudent on Returning Capital to Shareholders
Prudential Financial (PRU) has been very consistent with dividend payouts to shareholders, which makes the stock a very strong prospect for long-term value investors.
How Does a Rate Hike Impact Insurance Stocks?
Interest rates are a key performance driver for life insurance companies, affecting their margins, hedging costs, and product sales.
Is Prudential Financial on the Road to Recovery in 2016?
In 1Q16, Prudential’s revenues fell 4.4% year-over-year to $11.3 billion. On a constant dollar basis, the company saw a decline in its international insurance and US retirement solutions businesses.
How Prudential Has Boosted Shareholder Payout
Since 2010, Prudential Financial (PRU) has returned approximately $10 billion to shareholders in the form of dividends and buybacks.
Prudential’s US Individual Division to Benefit from Lower Charges
Prudential Financial’s (PRU) US Individual Life and Group Insurance division saw a fall in operating income on lower group insurance revenues.
Strong Dollar Continues to Impact Prudential Internationally
On a constant dollar basis, Prudential Financial’s (PRU) International Insurance segment reported a 7% rise in revenues in 4Q15.
Prudential Financial Expected to See Higher Profits in 1Q16
Prudential Financial’s (PRU) stock has risen by 7% in the past month and has fallen by 13% in the past quarter.
How to Pick a Life Insurance Policy
Term life insurance provides guaranteed benefits to beneficiaries for a specific period of time in case of the sudden death of the insured person.
What Are the Different Types of Life Insurance Policies?
Life insurance (PRU) (MET) policies come in various forms that cater to people in different age groups and with different financial goals.
The Effect of an Interest Rate Reversal on Insurance Companies
Interest rates are a key performance driver for life insurance companies. They affect their margins, hedging costs, and product sales.
How the Columbia European Equity Fund Fared until October
As of the September portfolio of the Columbia European Equity Fund, the top ten equity holdings included Novartis, Roche Holding, and Prudential Financial.
Prudential Financial’s 2Q15 Earnings Beat Estimates
Prudential Financial’s 2Q15 revenue rose by 12% year-over-year to $12.5 billion, exceeding consensus estimates of $11.2 billion. Its net income was $1.4 billion, up by 29% compared with 2Q14.
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.
UTC Is Revolutionizing Its Employee Pension Plan
After 2003, UTC started offering its new employees a hybrid-defined benefit cash pension plan.
Cigna: Group Disability And Life Insurance Business
Disability accounts for about 49% of the company’s Group Disability and Life Business revenues. It covers over 7.5 million people.
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%.
A Closer Look at Prudential Financial’s Capital Structure
Prudential reported a capital capacity of ~$2 billion at the end of 2014, which is net of another ~$2 billion capital that it earmarked for debt reduction.
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.