Broker snap: Excellent buying opportunity at Pru

14th May 2009 11:11

Life assurance group Prudential described its first quarter performance as 'resilient', a view with which broker Panmure Gordon concurs.'New business sales were ahead of the top end of the range and 8% ahead of consensus driven by better than expected performances in the US and Asia,' the broker said in a 'buy' note issued to clients.'The capital position has improved from year end 2008 with a surplus of £2bn (31 December 2008: £1.5bn) and corporate bond losses remain low,' Panmure analyst Barry Cornes noted.Prudential said its Insurance Groups Directive capital surplus of £2bn included the £400, raised during May through a debt placement.'New business margins are described as being ahead of 2008 reinforcing previous comments that sales growth will be concentrated on the more profitable products and areas which will both preserve capital and should be taken well,' Panmure Gordon said.The broker believes the current share price is too low and presents 'an excellent buying opportunity.'