Prudential Financial IncPRUCOMMENTJan 17, 2017Stock price when the opinion was issued
As of Jun 10, 2026. Market Open.
An Asian pure-play in insurance. The overall Asian market was down last year. They achieved all their growth goals in the past year, though. They will benefit from long-term secular trends in Asia. He expects good penetration rates in China where the middle is growing, so PRU is well-positioned. Today, he heard that Sun-Life is taking a trip to China to learn about that market.
US Lifeco vs Financials PRU-N is at risk to interest rates on their premiums collected as he thinks yields will remain neutral. He is not keen on BAC-N either at this point for the same views of the yield curve. Things can't get any better for each right now -- a no man's land right now. He sees a bit better bid for Lifecos, but mostly from a defensive position. There are more compelling areas than these two spaces.
Prudential (PRU-N), Metropolitan Life (MET-N) or a US bank? He likes financials for the long haul. The only group that has not fully recovered from the 2008 downturn. However, there has been a tremendous run up since the election on the hopes for higher interest rates because of stronger growth from some of the Trump policies and less regulations. He likes them both. They are both trading close to BV. However, insurance is becoming more and more of a commodity business, so he thinks he would give a little edge to MetLife for being bigger. Currently he likes the life insurers because the banks have run up so much.