Broker snap: Prudential remains Nomura's favoured insurer after strong results

12th Aug 2013 11:10

Nomura has reiterated its 'buy' rating and 1,392p target price for Prudential after the insurer's forecast-beating first-half results on Monday morning, saying that it remains the top pick in the sector.Headline IFRS operating profit came in at £1,415m, up 22% year-on-year and 6.0% ahead of consensus estimates (+5.0% against Nomura's forecasts).The company also gave a strong outlook, saying that it has now achieved four of its six 2013 'Growth and Cash' objectives and is on course to achieving the remaining two by the end of the year.The broker said that Prudential has a "superior growth profile" compared with its large-cap insurance peers on all metrics, "which, importantly, is not at the expense of dividend growth". Nomura said: "We concede there are likely structural issues that need to be addressed in Asian emerging economies, but we believe a growing middle class and increasing insurance penetration, coupled with Pru's strong market position, strong distribution and good product design, means the positive outlook for Pru's Asian business remains intact."The stock was up 2.70% at 1,216p by 11:17.BC