Prudential plc (PUK) recently completed the demerger of Jackson Financial (JXN.WI) and is now what investors have long wanted it to be a – pure-play provider of insurance savings and protection products to numerous growing, underpenetrated Asian markets, including China, India, Indonesia, and Thailand. While the shares have not done much since my last update, hurt in part by the ongoing COVID-19 pandemic, the modest decline is on par with AIA Group (OTCPK:AAGIY), the company’s main rival and comparable.
I continue to believe that Prudential is well-placed to generate attractive growth over the next decade, as it enjoys strong leadership in most of its top markets, where penetration rates are often still in the single-digits and where rising standards of living make retirement and supplemental health coverage a more realistic option for a growing percentage of the population. If Prudential can deliver on this opportunity and generate double-digit core earnings growth, the shares are about 20% undervalued in the near-term and offer longer-term annualized potential in the double-digits.
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Free Of Jackson, Prudential Plc Offers Attractive Exposure To Growing Asian Insurance Markets
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