Prudential (LON:PRU) has offloaded its life insurance business in Korea, the blue-chip company has said. The Pru, however, has assured investors that it remains committed to the Korean market.
Prudential’s share price meanwhile has rallied today, benefitting from Donald Trump’s win in the US presidential elections, with investors weighing the prospect of a rate hike by the Federal Reserve. As of 14:35 GMT, Prudential’s share price had spiked 7.65 percent to stand at 1,534.50p, outperforming the benchmark FTSE 100 index which has slipped into the red and is currently 0.38 percent worse off at 6,885.68 points. The Pru’s shares have gained just under three percent over the past year, and are up 0.4 percent in the year-to-date.
Prudential announced in a statement today that it had inked a deal to sell 100 percent of its life insurance subsidiary in Korea, PCA Life Insurance, to Mirae Asset Life Insurance, for KRW170 billion (£119 million). The FTSE 100 group explained that the disposal was consistent with its strategy of allocating its capital to markets where it is well positioned to generate shareholder returns.
Prudential, however, reassured investors that it remains committed to the Korean market through its Asian asset management business Eastspring Investments, which the group notes is one of the region’s largest asset managers.
Earlier this month, Macquarie reiterated its ‘outperform’ rating on the Pru, valuing the shares at 1,587p, while Deutsche Bank upgraded the group to a ‘buy,’ and hiked its price target on the stock from 1,385p to 1,590p.
The 19 analysts offering 12 month price targets for Prudential for the Financial Times meanwhile have a median target of 1,610.00p on the stock, with a high estimate of 1,783.00p and a low estimate of 1,250.00p. As of November 4, the consensus forecast amongst 20 polled investment analysts covering the blue-chip insurer has it that the company will outperform the market.