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Prudential growth plan impresses analysts at Barclays

Dividend growth of 7-9% in 2023 and 2024 is on the cards

Prudential PLC (LSE:PRU) chief executive Anil Wadhwani has sold Barclays on his strategy for the future, with the bank saying it is an ambitious, well-rounded and (in its view) achievable growth plan.

Upgrading technology, increasing adoption of digital tools, improving agency and bancassurance productivity and targeting scale in health insurance are key self-help measures.

Wadhwani also believes that Prudential can improve volumes beyond the structural post-Covid recovery.

On the financial front, the plan involves maintaining capital buffers of at least 150%, investment in profitable new business with returns (IRR) above 25% and payback periods of less than four years and dividend growth of 7-9% in 2023 and 2024.

'Overweight' is Barclays' investment stance.