Prudential (PRU) Decent results, but how much more to go for?
Prudential reported decent 3rd quarter results with surprisingly strong growth in the UK and USA, despite slowing growth in Asia – that’s a turn up!
For the year to date new business profit was 13% ahead. In the US, Prudential reported a surprisingly strong, to us, increase in variable annuity sales, up 37% in Q3 2012, with such new business likely to be restricted in Q4 2012 as the group is close to hitting its target for the year. As regards the new business margin, Prudential indicated that the reduction in 10 year T-bond yield and spread compression reduced new business margins by 6 percentage points, with pricing and management action mitigating some of this impact. The group reported that Jackson National’s hedging programme continues…