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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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The Markets
by Proactive
Proactive UK has moved.
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Financial Services

Prudential bounces back after read-across hits shares

Prudential PLC shares rose 1.9% to 1,089.5p on Monday, recovering some ground after last week’s sharp sell-off sparked by results from US peer Lincoln and Asian rival Manulife.

The stock had fallen 8.6% across Thursday and Friday as investors reacted to softer-than-expected figures from Manulife, particularly a 28% year-on-year drop in Hong Kong sales. That triggered concern about read-across to Prudential’s own Asian business.

Analysts at UBS said they see "limited read-across" from Manulife’s numbers, noting that Manulife has a heavier reliance on broker distribution in Hong Kong, at around 50%, compared with roughly 15% at Prudential. Manulife also faced tough comparisons after launching a new product that drove 165% growth in the fourth quarter of 2024.

Elsewhere, Sun Life reported a doubling of Hong Kong sales, suggesting the weakness may have been more company-specific.

UBS added that market nerves may also reflect concerns about artificial intelligence disrupting traditional agency sales forces, although it sees no clear evidence this is yet affecting Prudential’s business.

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