Prudential PLC (PUK-N)

Yields 5.5% and trades at 7x PE. This makes him think that something is wrong here, not cheap. Be careful.

Pure play insurance company in South-East Asia & Hong Kong.
Benefiting from growth in insurance market in Asia.
Expecting long term growth.
Believes fundamentals strong for emerging market growth.

Habitually rates are higher than your average life co. He likes the space because it is one of the spaces out there that benefits from the normalization of long term bonds. Expects lifecos to be amongst the best performing.

(Top Pick Sep 11/13, Up 33.03%) He would cut back because it is overweight.

Largest life insurer in the UK. Kind of a household name there. About half of its business is derived from Asia with the 2^nd largest portion being from the US and a 3^rd from the UK. This is a growth company, not a maximized dividend payout type, because the focus is on Asia. Good combination of defensiveness, cash generation and growth. The upside potential outweighs the downside risk.

Big wealth management book. Exposed to Indonesia, Malaysia, Hong Kong, Taiwan, Korea, etc. There is potential noise that it is going to spin off the US business.

Insurance company based in the UK. Have old legacy business, which is slow growing, as well as a business in the US plus a high growth business in Asia, which is insurance and wealth management. The Asian business is effectively the story. Strong balance sheet. 2.7% yield. There is a rumour that they may spin off the US asset which would create some big upside.

(Market Call Minute.) Likes the outlook for life insurance companies with rising interest rates. Based in England, but was still benefit from that.