|Bid||25.43 x 800|
|Ask||27.97 x 800|
|Day's Range||27.39 - 27.85|
|52 Week Range||15.68 - 44.84|
|Beta (5Y Monthly)||1.15|
|PE Ratio (TTM)||45.60|
|Forward Dividend & Yield||0.92 (3.40%)|
|Ex-Dividend Date||Mar 26, 2020|
|1y Target Est||36.30|
(Bloomberg) -- U.K.-listed banks with heavy exposure to Hong Kong slipped as China’s attempt to tighten its grip on the city fueled a political backlash.HSBC Holdings Plc dropped as much as 6.5%, the most in about seven weeks, while rival lender Standard Chartered Plc declined 4.7%. Insurer Prudential Plc tumbled 9.8%, its biggest fall in more than two months, before paring losses along with the banks.China confirmed on Friday that it would effectively bypass the city’s legislature to implement national security laws. The announcement triggered immediate calls for fresh protests and sent the MSCI Hong Kong index to its worst loss since 2008.“China’s latest move is damaging to gross domestic product, sentiment, loan growth and Hong Kong’s status as a global financial destination,” Bloomberg Intelligence analyst Jonathan Tyce said in written comments. HSBC and Standard Chartered each derive a quarter of their revenue from Hong Kong, and “far more” of their pretax profits, he added.Banks operating in Hong Kong, as well as luxury-goods makers, have been volatile since the final quarter of 2019 as protests gripped the city, sending it into recession. The global spread of Covid-19 spurred share plunges in 2020.Prudential, which has seen its shares plunge 28% year-to-date, is also highly exposed to the former British colony. Hong Kong accounted for 23% of the London-based company’s adjusted operating profit in Asia in 2019, more than any other market in the continent, according to the group’s annual report.And it wasn’t just European financials dropping on the Hong Kong developments, as luxury-goods makers that are dependent on sales in the city also slipped. Cartier watch-maker Compagnie Financiere Richemont SA and Gucci-owner Kering SA fell as much as 4.1% and 2.3% in Zurich and Paris, respectively.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
For many investors, the main point of stock picking is to generate higher returns than the overall market. But its...
The global insurance industry could lose more than $200 billion as a result of coronavirus, according to centuries-old insurance market Lloyd’s of London.
Shares in Prudential fell on Thursday as the coronavirus pandemic hit its Asia sales and it warned of challenging times ahead, while sources told Reuters the insurer's U.S. unit was for sale. Prudential's main businesses are in Asia and the United States after it spun off its British unit last year. Asian annual premium equivalent sales fell 24% in the first quarter to $986 million, with a 50% drop in Hong Kong and 19% in China, although Prudential said there were signs the sales environment was beginning to normalise in China.
U.K. stocks skidded lower on Thursday on worries markets have climbed too quickly in the face of the coronavirus pandemic still keeping most economies shut.
Hedge fund Third Point said on Thursday that it shifted much of its capital into credit investments after panic selling sparked by the coronavirus outbreak took a toll on its stock-heavy fund, with one of its portfolios losing 16% in the first quarter. The firm, run by billionaire investor Daniel Loeb, told clients in a letter seen by Reuters that it invested $2.2 billion in structured and corporate credit securities in mid-March, essentially doubling its exposure. Third Point, which had $16 billion under management at the end of December, said it had not adequately prepared for a possible full-blown pandemic and was caught flat-footed when the world was essentially shut down to blunt the virus' spread.
China plans to make it easier for foreign life insurers to make controlling acquisitions and large equity investments in domestic peers, five people with knowledge of the matter said, as the country pushes ahead in opening up its financial sector. The plan being drafted by the sector regulator is also part of Beijing's efforts to bolster the capital levels of small and mid-sized local players, sources said, amid concerns about the impact of the new coronavirus pandemic on their financial foundations. The new rules for the world's third-largest insurance market after the United States and Japan - worth about $318 billion in premiums according to a Swiss Re Institute report - are likely to be finalised in the second half of the year, sources said.
European stock markets headed lower on Friday, erasing meagre gains for the week, as more companies flagged a hit to business from the coronavirus pandemic, foreshadowing a deeper earnings recession ahead of the reporting season. The pan-European STOXX 600 index was down 0.2% at 0705 GMT, with energy stocks tracking a slide in oil prices as investors grew doubtful about a Saudi-Russia deal that U.S. President Donald Trump said he had brokered. Zurich Insurance Group AG, AXA SA, Munich Re and Prudential fell between 1.9% and 4.2% after the European Union's insurance regulator asked insurers and reinsurers to temporarily suspend dividends and share buybacks.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Prudential Plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
British stocks joined a global rout on Thursday, leading to the worst single-day percentage drop since 1987 on concerns the global economy will seize up.
Coronavirus is probably the 1 concern in investors' minds right now. It should be. On February 27th we published an article with the title Recession is Imminent: We Need A Travel Ban NOW. We predicted that a US recession is imminent and US stocks will go down by at least 20% in the next 3-6 […]
Jackson National Life Insurance Company® (Jackson®) today announced its full-year financial results, generating $3 billion in IFRS pre-tax operating income2 in 2019, an increase of 22 percent over 2018 and the highest in company history. Jackson also reported $22.2 billion in total sales and deposits, noting significant growth in fixed and fixed index annuity sales.
Prudential announced plans to float a minority stake in its U.S. insurer Jackson National Life, bowing to pressure from activist investor Dan Loeb, who has called for the company to split itself up.
Jackson National Life Insurance Company® (Jackson®) was recognized with four awards from Service Quality Measurement Group, Inc. (SQM)1 for excellence in contact center service in 2019. For the first time, Jackson was awarded SQM’s top honor — Contact Center of the Year — for earning the highest combined ratings for customer and employee experience among a field of leading call centers from across North America.
Shareholders in Prudential Plc <PRU.L> have given their blessing to a bid by activist investor Third Point to carve up Britain’s largest insurer but advise against a hasty sale of its U.S business. Third Point, the $14 billion hedge fund run by investor Dan Loeb, on Monday amassed a $2 billion-plus stake in the 170-year-old life insurer and called on management to separate its Asian and U.S. businesses. Investors and analysts say the idea of selling the U.S. business, Jackson, is not revolutionary and echoes requests by long-term investors, given the lack of synergies between it and Prudential's faster-growing Asian unit.
Prudential should break itself up into two publicly listed companies focused on Asia and the US to boost shareholder value, urged activist investor Third Point.The London-headquartered insurer should then move the primary base for its Asian arm to Hong Kong, and that of its US business, Jackson National Life, to Michigan, said Third Point. It should also stop prioritising dividends over investment in Asia.This deep restructuring would unleash the potential of its fastest-growing business, Prudential Corporation Asia (PruAsia), said Third Point, which manages US$14 billion."You have a jewel in the crown that is being overlooked because the company is being managed out of the UK," said Dan Loeb, who runs Third Point, in a telephone interview with the Post.The New York-based hedge fund has amassed just under 5 per cent of Prudential's stock, making it the company's second-largest shareholder, according to a letter sent to the company's board of directors and viewed by the Post."In three years' time, by separating the businesses, and getting the uplift in multiple and the uplift in growth, for the PruAsia subsidiary, we get to about double where it is trading right now in aggregate," said Loeb, explaining his reasoning.Such a restructuring would eliminate the cost of running a group head office, which Third Point estimates to be nearly £200 million (US$259 million) per annum and could be done without incurring material tax or other costs."It's a significant saving," said Loeb.Prudential trades for less than 10 times consensus 2020 earnings, and underperformed the stock of Hong Kong-headquartered Asian insurer AIA by around 80 per cent as of February 24. Coronavirus: Hong Kong insurers offer special payouts to patientsThis is partly because PruAsia is coupled with Jackson, which is hard for investors to analyse and isn't investing enough in Asia. It should, for example, look at raising its stake in its 50 per cent-owned China joint venture with Chinese conglomerate Citic, said the hedge fund. Third Point also called out management's dividend policy."Management's 'progressive dividend' policy has been short-sighted, stunted growth, and led it to forego new business investment, especially in Asia," said Third Point in the letter to the board.Prudential confirmed that it received a letter from Third Point on February 24 and that it looked forward to starting a dialogue with Third Point. Prudential also said it will provide an update on performance and strategy when it publishes its full-year results on March 11.Prudential has already taken steps to shake up its business. The British insurer spun off European investment manager M&G; last year and is already prioritising Asia.Third Point said they are not going far enough. Prudential's plans are inconsistent with the make-up of the executive management team, which has limited experience in Asia. Also, answering to a headquarters 6,000 miles away from PruAsia's local base in Hong Kong has made it difficult to attract and retain local top-quality managerial talent."This isn't just about the bottom line, it's a structural fix that would bring management closer to operations and allow them to attract best-in-class Asian operators to run an Asian company out of Asia," said Loeb.Businesses in Asia are bracing for a rough ride in the coming months as the new coronavirus, dubbed Covid-19, drags on economic growth.However, Third Point said the epidemic is no reason to hold back on investing heavily in Asia. It noted that there is a need for health and protection products in Asia, a region with 3.6 billion consumers and little existing coverage.Other financial institutions are also looking past the current crisis and focusing on the long-term growth potential of the region. London-headquartered HSBC said on February 18 that it plans to accelerate its investment in Asia whilst cutting operations in the US and Asia."Prudential Plc must refocus on localizing its strategy, capital, and leadership, which starts with the separation of PruAsia and Jackson," said the letter to Prudential's board.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2020 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2020. South China Morning Post Publishers Ltd. All rights reserved.
(Bloomberg Opinion) -- Dan Loeb’s Third Point LLC says it has a history of working constructively with boards to promote the success of their companies. The activist’s latest goal seems to involve removing the board of Prudential Plc entirely, and dismantling the head office around it, as part of a breakup of the $48 billion insurer.That may not be as hard as it sounds.Once focused on Britain, Prudential has transformed into a large Asian insurer with a smaller U.S. business attached. Its shares suffer under a stark valuation discount to Hong Kong-listed peer AIA Group Ltd., and Loeb has set out a plausible explanation for why. The reason, he says, is that the Asian side needs capital to grow, but competes with shareholders for dividends. Likewise, the U.S. business would be better off conserving cash in support of its own capital strength. Meanwhile, most investors don’t want to invest in an Asian-U.S. hybrid insurer.The remedy sounds simple: Split Prudential into separate U.S. and Asian businesses with their own stock listings and dividend policies. The Asian shares would probably command a much higher valuation than whole the group does now, providing an acquisition currency that would be a cheap source of growth capital. At the same time, scrapping the conglomerate structure would eliminate the need for a costly corporate center based in London.None of this is likely to be a huge surprise to Prudential’s directors. The board has already been simplifying the company, mainly by spinning off the M&G Plc asset management business. That move has failed to address the valuation gap, so the next logical step would be to jettison the U.S. subsidiary and become a pure Asia play. Prudential’s chairman, Paul Manduca, is retiring next year anyway, and Chief Executive Officer Mike Wells has been in the role for five years. Manduca’s successor, banker and former government minister Shriti Vadera, has a chance to be radical.The real opponents to Loeb’s ideas are more likely to be found among Prudential’s long-term investors. Third Point is a new arrival taking on a longstanding problem. But Prudential has a large number of U.K. investors whose own narrow interests may be served by keeping it in its current form, paying high dividends via a London-listed share. Recall that consumer giant Unilever NV encountered huge resistance to an attempt to simplify its structure in 2018, while plumbing group Ferguson Plc is moving with extreme care about a possible re-domicile for the same reason.Loeb argues Prudential in two pieces would be worth twice what it is today. He may be right, but if a breakup involves a dividend cut along the way, it won’t be plain sailing.To contact the author of this story: Chris Hughes at email@example.comTo contact the editor responsible for this story: Beth Williams at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Third Point's demands, first reported by Reuters earlier on Monday, could lead to a major shake-up at Prudential, only a few months after it spun out its European insurance and asset management businesses into a new company called M&G Plc . Third Point, which specializes in shareholder activism and is run by Daniel Loeb, wrote to the 332-year old London-based company on Monday to ask it to separate its Asian and U.S. businesses. The New York-based hedge fund said Prudential's stock would benefit if it stopped running its crown jewel Asia business and its U.S. business, Jackson National Life, out of one holding company in Britain.