When Anil Wadhwani arrived at Prudential in 2023 and said things would be done differently, the new chief executive didn’t really have a choice. Incorporated in the UK but focused on Asian life insurance, the Pru is an odd hybrid.
It is the result of a 2021 break-up that split off its UK and US operations to focus on higher-growth businesses — a classic corporate finance move meant to bring a higher rating and better times for shareholders. It hasn’t worked. Indeed, total returns from M&G in the UK and US business Jackson have easily outstripped Pru’s as Asian growth has slowed.
Prudential shares are hovering close to 10-year lows. Global events have not helped with China and Hong Kong shut for business for much of the pandemic. The basic premise seemed sound: insurance remains underpenetrated in fast-growing developing Asia.