Prudential "is best growth idea in UK insurance", says Killik

12th Mar 2014 14:31

Broker Killik & Co has advised investors to buy the Prudential, saying the insurer is "the best growth idea in UK insurance".Prudential said on Wednesday that a strong performance in Asia had helped it to drive a 17% rise in the group's full-year operating profit to £2.9bn.Its M&G asset management business continued to perform well, achieving record IFRS operating profit of £235m, up 23%. Fund sales, combined with a 15% increase in equity market levels and an 8% rise in bond markets, pushed total funds under management up to £244bn, 7% higher than a year ago.Killik's Head of Equities Jonathan Jackson said Prudential was trading at a premium to UK rivals.But it had a significantly better growth profile in its Asian and US operations,a strong balance sheet, good geographic exposure, focus on value over volume and higher earnings growth."We remain buyers of Prudential as the best growth idea in UK insurance," Jackson said."While its dividend yield is lower than its peers, at 2.5%, we believe it will grow the payout significantly faster than peers." Shares in Prudential rose 41p or 3% to 1,402p at 15:40 in London.PW