Prudential (LON:PRU) has renewed and expanded its bancassurance alliance with United Overseas Bank (UOB), the blue-chip insurer has said. The move follows the Pru’s trading update in November, when the company posted a rise in new business profit from its life insurance operations.
Prudential’s share price has been little changed in today’s session, having shed 0.24 percent to 1,426.00p as of 11:01 GMT, marginally underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.14 percent lower at 6,897.16 points. The group’s shares have given up more than 27 percent of their value over the past year, as compared with a near 11-percent dip in the Footsie.
The Pru renews alliance with UOB
The Pru announced in a statement today that it had renewed its alliance with UOB, originally commenced in 2010, to 2034. The new deal increases the geographical scope of the original agreement to include Vietnam to the FTSE 100 group’s existing footprint across Singapore, Malaysia, Thailand and Indonesia.
Under the terms of the deal, the Pru’s life insurance products will be distributed through UOB’s network of more than 400 branches in five markets. The FTSE 100 group meanwhile will use its digital capabilities to deliver protection focused propositions to aid UOB's digital bank expansion and customer acquisition aspirations. An initial fee of £662 million will be paid under the deal which will be funded through internal resources.
Analysts on FTSE 100 group
JPMorgan Chase & Co, which is ‘neutral’ on the Pru, trimmed its price target on the shares from 1,899p to 1,522p this week, while Deutsche Bank reaffirmed the company as a ‘buy,’ valuing the shares at 1,750p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 2,120.07p.