- Despite APE sales meeting our expectation, Prudential’s 2023 NBP beat our forecast by 9.2%, mainly driven by better-than-expected margin performances across key markets due to favourable shifts in its product and channel mix.
- - Read this at SGinvestors.io -
Strong beat in 2023.
- In 2023, Prudential (SGX:K6S) delivered stronger new business profit (NBP) growth of 43%/45% y-o-y growth actual/constant exchange rate basis (AER/CER) (vs 1H23's 36%/39%). 2023 NBP was US$3,125m, 9.2%/6.4% above our and market estimates respectively, while the annual premium equivalent (APE) increased 34% y-o-y to US$5,876m, largely in line with our forecast.
Broad-based margin improvement drives NBP growth.
- - Read this at SGinvestors.io -
- IFRS operating profit grew 6.3% y-o-y on an AER basis, largely within consensus forecast. The profit growth was mainly due to a decline in central costs items and increase of profit from its asset management business, Eastspring while the operating profit from the insurance business stayed almost flat as the higher insurance service results were largely offset by lower longer-term net investment results.
- Closing contractual service margin (CSM) by 5.1% y-o-y after releasing into profit & loss statement with a 9.5% rate, thanks to growing NBP.
Dividend up 9.0% y-o-y.
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Kenny Lim Yong Hui UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-03-21
Previous report by UOB:
2023-12-15 Prudential - More Conservative On Growth Outlook.
Price targets by 3 other brokers at Prudential Target Prices.
Listing of research reports at Prudential Analyst Reports.
Relevant links:
Prudential Share Price History,
Prudential Announcements,
Prudential Dividends & Corporate Actions,
Prudential News Articles
