Prudential Results Disappoint on China Weakness

Dow Jones
Nov 05

0641 GMT - Prudential's results could lead to disappointment and uncertainty over the insurer's outlook for China, J.P. Morgan analysts write. The company misses JPM's third-quarter new business profit expectations, which the bank thinks is mainly due to a disappointing result in China. "Prudential has made clear that it will likely miss its double-digit new business profit growth for the year, given greater sales weakness in China and slightly prolonged uncertainty over the impact of regulatory change impacting the bancassurance channel," JPM notes. It is likely that Prudential will also miss the current JPM 2026 new business profit forecast of 9%, JPM says. The stock remains inexpensive, but the third-quarter result isn't enough to start closing Prudential's discount to European peers, the analysts add.

 

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