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Prudential PLC PRU Stock Quote

| Rating as of

XLON:PRU

Morningstar‘s Stock Analysis PRU

Valuation
Currency in GBX
Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

INVESTOR

Economic Moat

INVESTOR

Capital Allocation

INVESTOR

Prudential Looks Set to Return to Normal Levels of Growth That Will Be Added to by Pulse

Analyst Note

| Henry Heathfield, CFA |

We think Prudential looks set to return to more normal levels of growth as China and Hong Kong emerge from lockdown. The business has experienced a substantial contraction in new business contributions as China and Hong Kong have been in severely restricted conditions due to the policy of zero-COVID. We think the market is estimating those lower levels of growth into the future because if we use those growth levels, we get to a share price equal to the current market value. However, we think these lower levels of growth will not last forever and that traffic from China to Hong Kong is starting to return albeit at muted levels. Prior to the pandemic these numbers of visitors to Hong Kong from mainland China were around 350,000 a month and during the pandemic that fell to around 4,000. That is now creeping back above 50,000 and the recent relaxing of restrictions point to a continued emergence from this situation. That gets us most of the way to our estimate of fair value.

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Key Statistics PRU

Company Profile PRU

Business Description

Prudential was originally established in 1848 during the reign of Queen Victoria as Prudential Mutual Assurance, Investment, and Loan Association. The company was founded to offer life assurance and loans to the middle classes and a few years later established its industrial department. Here the company sold insurance to the working classes and became synonymous with "Man from the Pru" door-to-door sales. Over the years Pru purchased various companies and in the 1920s listed on the London Stock Exchange. With the recent divestments of Jackson and Mercantile & General, Pru is returning to some historical roots. The company is focused on selling health and protection as attachments to long-term savings to upper, middle, and working classes.

Contact
1 Angel Court
London, EC2R 7AG, United Kingdom
T +44 2072207588
Industry Insurance - Life
Most Recent Earnings Dec 31, 2007
Fiscal Year End Dec 31, 2022
Employees 13,837