Prudential Earnings: Strong New-Business Profit as Restrictions Ease; Shares Undervalued

Prudential reported key performance numbers for the first quarter that we think were solid to good. To call out some key themes in the release, 10 of Prudential's 13 markets achieved double-digit new-business profit growth. As restrictions ease, the business delivered $1,559 million in annual premium equivalent sales, a 35% rise from the same period last year at constant foreign exchange. New-business profit climbed from $571 million to $743 million over the same period, again at constant currency rates. It is important to note the change in Hong Kong numbers within this overall growth. In that region, new-business profit rose 106% to $293 million as visits from mainland customers, as well as domestic sales, continued to grow. Visitation to Hong Kong has bounced.