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Prudential Financial, Inc. (PRU)

  • Aug. 1, 2013, 3:08 PM
    • The insurance sector (KIE +2.1%) is flying higher with a number of new 52-week highs, led by MetLife (MET +6.2%) and Lincoln National (LNC +6.6%) which both posted big earnings numbers overnight.
    • MetLife meant what it said about a shift away from capital and market-sensitive products with variable annuity sales off 40%. While management will not launch share buybacks while the SIFI designation process winds along (another 7-8 months), the team wouldn't rule out (CC transcript)  another increase in the dividend (it raised it to $1.10 from $0.74 earlier this year).
    • Under no such regulatory thumb, Lincoln has been busy buying back its shares at well below book value for some time. On the CC (transcript), management trimmed guidance for the negative impact of low interest rates from a $100M hit to earnings to a $35M hit (company made $351M in Q2).
    • Other insurers on the move: Prudential (PRU +4.8%), Aflac (AFL +2.7%), Hartford (HIG +3.6%), ING US (VOYA +3%), Old Republic (ORI +2.5%).
    • AIG (AIG +3.4%) nears a new 52-week high ahead of its earnings after the bell.
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  • Jul. 23, 2013, 4:24 AM
    Prudential Financial (PRU) is due to appear before the Financial Stability Oversight Council today to try to persuade the regulator not to label the insurer as a "systemically important financial institution." Prudential's hopes might have been raised by two council members dissenting on the decision to designate the firm as SIFI, although on the downside, the G20's Financial Stability Board has categorized the company as such.
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  • Jul. 20, 2013, 8:15 AM
    With the major averages edging towards pricey territory, Andrew Bary of Barron's screens the S&P 500 for stocks trading at single-digit multiples, then narrows the list to those whose prospects can be argued to be good. The names are all familiar ones, but their presence on the list may surprise: VLO, MPC, HPQ, FCX, ESV, PSX, GM, MET, WDC, PRU, APA, JPM, C, DE, AAPL.
  • Jul. 19, 2013, 2:59 AM
    AIG (AIG), MetLife (MET) and Prudential Financial (PRU) are among nine global insurers that have been categorized as "systemically important" by the G20's Financial Stability Board. The designation, which U.S. authorities also want to place on the firms, will mean they'll have to hold higher capital reserves, and formulate recovery and resolution plans to limit any fallout should they collapse. Unlike in the U.S., GE Capital's (GE) not on the list, although Prudential PLC (PRU), Aviva (AV), Germany's Allianz (ALIZF.PK), France's Axa (AXAHY.PK), China's Ping An (PIAIF.PK) and Italy's Assicurazioni Generali (ARZGF.PK) are.
  • Jul. 11, 2013, 10:40 AM
    Also pulling back (previous) amid the slide interest rates are life insurers MetLife (MET -0.6%), Hartford (HIG -0.7%), and Lincoln Financial (LNC -0.5%) - each of which had rallied to new post-crisis highs as bond yields took off. Also well off opening highs are Prudential (PRU +0.2%), Manulife (MFC +0.3%), Sun Life (SLF -0.1%), and ING US (VOYA -0.5%).
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  • Jul. 5, 2013, 10:02 AM
    A number of life insurers are at (or very near) new 52-week highs thanks to today's sharp rise in interest rates which should allow investment at something closer to what's needed to meet their obligations. MetLife (MET +1.8%), Prudential (PRU +1.2%), Hartford (HIG +2.1%), Lincoln National (LNC +3.3%), Manulife (MFC +0.8%).
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  • Jul. 3, 2013, 2:51 AM
    Unlike AIG and GE Capital, Prudential Financial (PRU) is contesting the Financial Stability Oversight Council's decision to label the insurer a non-bank "systemically important financial institution" (SIFI). "Non-bank SIFI has the potential for being very disruptive to their business model, if they're required to hold capital at a level that puts them at a disadvantage to other insurance companies,” says analyst Ed Shields. (8-K)
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  • Jul. 2, 2013, 3:34 PM
    GE joins AIG in not planning to appeal being designated a systemically important financial institution (SIFI). The company has spent years arranging its affairs for the dubious honor by cutting noncore investments and raising capital. Prudential (PRU) remains on the fence about deciding whether to appeal.
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  • Jun. 20, 2013, 10:07 AM
    What's outperforming this morning? Life insurers for one, with Manulife (MFC +2%) leading the way after an upgrade. These companies have a near-impossible time of meeting their investment bogies with long-term yields so low, so the 10-year close to 2.5% works better than 2.2% a day ago and 1.7% weeks ago. MetLife (MET +1.1%), Prudential (PRU -0.1%), Hartford (HIG unchanged), Sun Life (SLF +0.8%), Lincoln National (LNC +0.1%).
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  • Jun. 12, 2013, 10:03 AM
    A NY state regulatory probe of life insurers has identified nearly $48B in potentially troublesome transactions  with so-called "captive" reinsurers. Insurance companies use the entities to help meet capital requirements, but regulators are worried they're being used to mask true financial health, and are calling for new nationwide "disclosure requirements." No names are mentioned, but MetLife (MET) is one of the larger users of such entities. Prudential (PRU) partakes as well.
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  • Jun. 11, 2013, 5:09 PM
    Prudential Financial (PRU) says its board has authorized the repurchase of up to $1B of its outstanding stock during the period from July 1, 2013 through June 30, 2014. The board had previously approve a $1B buyback in June, 2012 through June 30, 2013, of which it had repurchased approximately $150M.
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  • Jun. 7, 2013, 11:37 AM
    Among the strongest performers in a strong market are insurers - particularly life insurers - on hope of a sustained rise in interest rates allowing better income on their investments (current holdings tend to be hedged meaning no losses). MetLife (MET +2%), Prudential (PRU +3%), Hartford (HIG +2.3%), Genworth (GNW +3.3%), Manulife (MFC +1.9%), Lincoln National (LNC +2.8%) Sun Life (SLF +1.4%), ING US (VOYA +2.8%). Insurer ETFs: KIE, though it is more exposed to P&C, IAK, KBWI, KBWP, though totally P&C focused.
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  • Jun. 4, 2013, 2:05 AM
    As expected, the Financial Stability Oversight Council has proposed to designate AIG (AIG) Prudential Financial (PRU) and GE Capital (GE) as systemically important. Prudential says it is evaluating whether to appeal the determination, although AIG won't. The Fed has yet to finalize its requirements for systemically important non-bank financial companies, but they're expected to include stress tests and higher capital holdings.
  • May. 31, 2013, 4:15 AM
    The Financial Stability Oversight Council could reportedly decide on Monday which non-bank financial companies will be designated as systemically important, and thereby subject to Fed stress tests and higher capital requirements. The top candidates include Prudential (PRU), AIG (AIG) and GE Capital (GE). Investors fear that the classification could make it harder for companies to distribute their cash, although it could also lead to lower borrowing costs.
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  • May. 18, 2013, 8:45 AM
    Newly public ING U.S. (VOYA) is up 20% since its IPO 2 weeks ago, but only trades at 60% of book value compared to the average life insurer (MET, HIG, PRU) selling for near book, writes Andrew Bary. Not only that, but the company is misunderstood - it's more retirement-services specialist and asset manager (think PFG) than life insurer, and should command an even higher valuation. What's more the seller (ING) was forced by regulators to do so against its will, the ING CEO calling it a "significant destruction of capital." Spinoff & Reorg Profiles - rarely a fan of promoted IPOs - think's it's worth $31. With an easily digestible $6B market cap, it might be worth even more to an acquirer.
  • May. 10, 2013, 11:11 AM
    A basket of 27 stocks drawing at least 10% of their revenue from Japan is up 11% YTD, 600 bps shy of the median gain for a S&P 500 stock, according to Goldman, doing the study as the yen devaluation continues. Insurers make up 3 of the 5 deriving the largest portion of revenue from Japan, with Aflac (AFL) a big underperformer, but Hartford (HIG) and Prudential (PRU) beating S&P gains.
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Company Description
Prudential Financial Inc through it's subsidiaries and affiliates, offers financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management.
Sector: Financial
Industry: Life Insurance
Country: United States