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Hello Share Rattlers. It seems to this old punter that insurance companies might be the cautious choice in these difficult times. When folks feel insecure they buy more policies and are prepared to pay more for them. And one of the best as far as profits go is Prudential (PRU)...
Naturally any comment written in August here about a longer-term play such as the Prudential (PRU) has not aged well...especially in the last six or so weeks. Amid all the market volatility, policymaker announcements and health crises out there, the Prudential quietly came out with its latest set of numbers.
Back in March I mused about the Prudential (PRU) concluding that it was wise to snaffle 'a few (shares) now and at each new Pound below the current share price (£15 something a share, £14 something a share) is a suitable compromise between opportunity and the short-term perception vagaries towards the insurance space'. Well in the five months or so since then the shares have undertaken a bit of a 'Grand Old Duke of York' moment and gone up the share price hill...and back down again. Such is the insurance space...and the ups and downs of financial markets.
There are always many different shares to write about but I am surprised that i have troubled these pages with my thoughts on the Prudential (PRU). As a self-confessed investment geek typically focused on longer-term themes and trends, there are few corporate names in the FTSE-100 as well set up as the Prudential with its growing exposure to the burgeoning Asian insurance market, a region where the last ten year renewal premium compound growth rate for the company has been a cool 18% and profits have grown even faster.
Hello Share Sneakers. It’s been a while since I commended the Man from the Pru (PRU) to you, but my positive stance has only strengthened since then. I hold a few other British insurers, like RSA (RSA) and Legal and General (LGEN), but not the Prudential. And yet it may be the most undervalued of the three.
Hello, Share Twiggers. Let’s have another look at the Man from the Pru. Prudential (PRU) has just announced that six month operating profits are up by 5%. Not brilliant, but, never mind, an increasing profit usually means a climbing share price.
Hello Share Troopers. I’ve long been a fan of British insurance giants. They are a chance to invest in the fast-moving financial world without too much fear of heavy fines and compensation payments for mis-selling and so on. Though, of course, there is an element of that.
It is hard to see how one could improve on the annual results from the Prudential Corporation (PRU) for last year to 31 December. These included excellent recovery in the US business and continuing growth in South East Asia, with its growing demand for savings products, plus a long term agreement to distribute its branded savings services through Standard and Chartered Bank; an agreement of financial efficiency that looks text book attractive.
Whilst at the once respected tips.com for eight years I contributed to longer investment performance in part by spotting value in Prudential Corporation (PRU) when its shares were priced at 791p in March last year and again at 679 p the following May - after they had fallen 14%. I had in fact first identified the longer term undervaluation of Prudential shares way back in November 2009, when they were a mere 557p. It seems incredible that they now stand at 1190p (a rise of 113%) having peaked at 1270p last August.
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