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Prices & Quotes - UK Markets - Prudential (PRU)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 934.40p
Change Today:
-25.20p
Market Cap:
24,378m
Sector:
Life Insurance

Prudential to split off US Jackson business

By Sean Farrell

Date: Tuesday 11 Aug 2020

LONDON (ShareCast) - (Sharecast News) - Prudential said it would split off its Jackson Life US business to focus on Asia and Africa as the insurance company reported a 3% dip in first-half profit.
Adjusted operating pretax profit for the six months to the end of June fell to $2.54bn from $2.62bn as profit declined at Jackson.

The FTSE 100 company said it would separate Jackson fully from the group starting with a minority initial public offering in the first half of 2021.

The decision ends a long period of uncertainty about the company's plans for its US business, which Prudential bought in 1986. Activist investor Third Point has called for Prudential to focus on its fast-growing Asian operations and the company said in March it was planning an IPO for Jackson.

Prudential split off its UK business 2019 and disposing of Jackson will leave it to concentrate on booming markets in Asia and Africa. Profit rose 14% in Asia and fell 19% in the US as market movements affected the value of Jackson's assets and annuity sales declined.

Chief Executive Mike Wells said: "The board of Prudential plc has decided to pursue the full separation and divestment of Jackson to enable the group to focus exclusively on its high-growth Asia and Africa businesses. This would result in two separately listed companies with distinct investment propositions, which we believe would lead to improved strategic outcomes for both businesses."

Prudential said it intended to pay a dividend of about 16.10 centes a share in 2020 and declared a first interim dividend of 5.37 cents a share.

Richard Hunter, head of markets at Interactive Investor, said the rebased dividend stripped out Jackson leaving a yield of about 1% and investors looking for growth rather than income. The company's shares rose 3% to 12.69 at 11:59 BST and are down 13% in 2020.

Hunter said: "Prudential is a perennial target for longer-term growth bulls and this renewed focus on potentially lucrative markets is likely to consolidate the market consensus of the shares as a strong buy."

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Prudential Market Data

Currency UK Pounds
Price 934.40p
Change Today -25.20p
52 Week High 1,506.00p
52 Week Low 710.80p
Volume 5,319,477
Shares Issued 2,608.94m
Market Cap 24,378m

Performance Indicators

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What The Brokers Say

Strong Buy 10
Buy 1
Neutral 5
Sell 0
Strong Sell 2
Total 18
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Prudential Dividends

  Latest Previous
  1st Interim Final
Ex-Div 20-Aug-20 26-Mar-20
Paid 28-Sep-20 15-May-20
Amount 5.37¢ 25.97¢

Trades for 29-Oct-2020

Time Volume / Share Price
16:35 1,937,179 @ 934.40p
16:29 500 @ 933.00p
16:29 213 @ 933.20p
16:29 505 @ 933.40p
16:29 150 @ 933.60p

Prudential Key Personnel

Chair Paul Manduca