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Market Update On One Insurance Stock - PRU

Jun 25, 2024 | Team Kalkine
Market Update On One Insurance Stock - PRU

  • PRU:LSE
  • Investment Type
    Large-cap
  • Risk Level
  • Action
  • Rec. Price (GBX)

Prudential PLC

Prudential PLC (LSE: PRU) is an FTSE 100 index-listed insurance company with an Asia-based portfolio of businesses emphasizing structural growth markets.

Capital Management Update (Released on 24 June 2024)

  • Free surplus ratio Update: During H1 FY23 results, the group introduced a capital allocation framework. As some elements of the shareholder GWS capital surplus become available as cashflows over time, the management prefers the Group's free surplus (excluding intangibles) metric, which excludes these future flows, as our measure of distributable shareholder capital.
  • Operational Highlights: The management is focused on "with profit" savings, unit-linked, and health and protection business results in relatively low volatility of free surplus during stress events. The company aims to maintain a free surplus ratio of 175%-200% based on the current risk profile and applicable capital regimes.
  • Outlook: The company announced a USD 2 bn share buyback program to be completed by mid-2026, in line with the capital allocation framework. Progress towards the financial objectives increases the potential for further cash returns to shareholders. The dividend policy remains unchanged, with expected growth of 7-9% in FY24.

 Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Prudential PLC (LSE: PRU) was trading at the current market price of GBX 749.80 (as of 25 June 2024, 10:40 AM, GMT+1)

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 25 June 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.


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Past performance is not a reliable indicator of future performance.

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