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Insurers/Prudential: smoke, mirrors and embedded values

Prudential's embedded value has fallen due to higher interest rates, while new business profits fell 14%. Valuation metrics show shares trading at a smaller premium than AIA.

  • Prudential's embedded value fell almost $7bn due to higher interest rates.
  • Embedded value is a controversial metric in insurance.
  • New business profits at Prudential fell 14%.
  • Valuation metrics show Prudential shares trading at a smaller premium than AIA.
  • Cash remitted from divisions to Prudential dropped by about $150mn to $1.3bn in 2022.
Insurers/Prudential: smoke, mirrors and embedded values
Interest rates take a heavy toll on results day

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