pru4 Dec 2017 21:42
(ShareCast News) - Anne Richards, M&G Prudential's chief executive bought a large amount of shares in the life insurer financed via the sale of options in the stock.
On 1 December, Richards had sold 41,194 options in the firm, pocketing �395,174.04 in exchange, which she proceeded to reinvest almost entirely in shares of Prudential on the next business day, the company said in a statement.
She was preceded by David Law, the chair of the group's audit committee, who on 1 December picked up �39,715.94-worth of shares.
However, also on 1 December, Alan Porter, Prudential's general counsel, Jonathan Oliver, the insurer's director of communications and John Foley, M&G Prudential's chief, also sold options, with all of them opting to retain the proceeds of their respective transactions.
On 16 November, in a statement issued ahead of an investor day, the company said it continued to benefit from "powerful and enduring demand drivers" and its established platforms in Asia, the US, and the UK and Europe, with new business profit of �2.47bn, for a 17% increase on the comparable year-ago period.
Commenting on the same, analysts at Barclays told clients: "While the recent CMD (16th Nov) didn't provide any new material insights, we believe it did highlight again the quality of its franchise and the opportunity ahead.
"The new CEO of the Asian operations believes Asia can double earnings again over the next five to seven years (CAGR of 10-15%), while the US CEO thinks the Department of Labor (DOL) rules will significantly increase the market opportunity for variable annuities once implemented. The CEO of the merged UK operations believes M&G Prudential can be a leading "capital- light" UK savings and retirement company."
Barclays revised its target on the shares to 2,169p, sticking by its 'overweight' recommendation while designating the stock as its 'top pick' in European insurance.