# Prudential (PRU.LSE)

Canonical: https://gigainvestors.com/s/PRU.LSE

Analysis as of: 2026-10-16T07:34:20.670Z. Financial observations: FY2015–FY2025.

Listing currency: GBX. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 899.40 per share; close as of 2026-10-15.

Estimated value: low GBX 1,495.17 per share, central GBX 1,868.96 per share, high GBX 2,491.95 per share. Buy at or below the central value GBX 1,868.96 per share. Valuation as of 2026-10-16T07:34:20.670Z; scenarios are not confidence intervals.

Expected annual return: 14.3% at the stated quote. About 14.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: pass

- Financial history: 10 years

- Profitable years in the last ten: 9

- Required profitable years: 8

- Return on common equity variation (informational): 0.91×

Chart: Net income; fiscal year observations.

- FY2016: $1.9B

- FY2017: $2.4B

- FY2018: $4.0B

- FY2019: $783M

- FY2020: $2.1B

- FY2021: -$2.0B

- FY2022: $998M

- FY2023: $1.7B

- FY2024: $2.2B

- FY2025: $4.1B

### moat: pass

- Common book per share

- Parent-total proxy for preferred equity and common earnings

- Bank / P&C ROTE, median of available years: 10.4%

- Required median return: 10.0%

- Return uses tangible common equity: No

- Bank ROTE, second-lowest year: 5.3%

- Years with reported combined ratio: 0

Chart: Return on common equity; fiscal year observations.

- FY2016: 10.6%

- FY2017: 14.9%

- FY2018: 23.3%

- FY2019: 5.3%

- FY2020: 10.1%

- FY2021: -12.0%

- FY2022: 5.9%

- FY2023: 9.7%

- FY2024: 12.8%

- FY2025: 20.2%

### economics: pass

- Common book per share

- Parent-total proxy for preferred equity and common earnings

- Book value per share + reinvested dividends, annualized return: 9.7%

- Book return interval: 10 years

- Starting book value per share: $5.07

- Ending book value per share: $7.80

Chart: Annual book + dividend return; fiscal year observations.

- FY2016: 49.1%

- FY2017: -4.9%

- FY2018: 28.3%

- FY2019: -16.0%

- FY2020: 47.2%

- FY2021: -20.5%

- FY2022: 2.5%

- FY2023: 7.2%

- FY2024: 2.5%

- FY2025: 25.0%

### management: fail

- Common book per share

- Parent-total proxy for preferred equity and common earnings

- book per share gain below retained common earnings per share

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: -0.1%

- Share growth excluding flagged crisis recapitalisations: 0.1%

- Five-year share growth excluding flagged crisis recapitalisations: -0.1%

- Flagged crisis recapitalisations: 0

- Book created / earnings retained after dividends and buybacks: 0.92×

- Book value created per share: $2.73

- Earnings retained per share after dividends and buybacks: $2.99

Chart: Shares (first year = 100); fiscal year observations.

- FY2015: 100

- FY2016: 100

- FY2017: 100

- FY2018: 90

- FY2019: 101

- FY2020: 102

- FY2021: 107

- FY2022: 107

- FY2023: 108

- FY2024: 106

- FY2025: 101

### accounting: pass

- Financial accounting warning count: 0

- Known restatement years: 0

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Bill Nygren](https://gigainvestors.com/HA): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 40% since Oct 2021 · net income +81.5%

Story as of 2026-10-16T10:00:00.151Z; price observation 2026-10-15.

The price assumes profits grow 1.5% a year forever

### Net income · FY2025

net income +81.5%; source https://filings.xbrl.org/5493001Z3ZE83NGK8Y12/2025-12-31/ESEF/GB/0/5493001Z3ZE83NGK8Y12-2025-12-31/reports/5493001Z3ZE83NGK8Y12-2025-12-31-T01.html; observed 2026-04-07.

- FY2016: $1.9B 

- FY2017: $2.4B 

- FY2018: $4.0B 

- FY2019: $783M 

- FY2020: $2.1B 

- FY2021: -$2.0B 

- FY2022: $998M 

- FY2023: $1.7B 

- FY2024: $2.2B 

- FY2025: $4.1B 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in insurance life; annual sales are USD 28.3 billion.

- Source: https://filings.xbrl.org/5493001Z3ZE83NGK8Y12/2025-12-31/ESEF/GB/0/5493001Z3ZE83NGK8Y12-2025-12-31/reports/5493001Z3ZE83NGK8Y12-2025-12-31-T01.html (filed 2026-04-07); FY2025: revenue 28337308000.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PRU.LSE: Prudential plc, through its subsidiaries, provides life and health insurance, and asset management solutions to individuals in Asia and Africa. It offers savings and investments products; and wealth, health, and protection products. The company was founded in 1848 and is headquartered in Central, Hong Kong.

### Why customers stay

It earns 10.4% on shareholders’ money, excluding intangible assets.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); 10-year return on tangible equity observations [[2016,0.1061619050865698],[2017,0.14850500404052963],[2018,0.23322403120919377],[2019,0.05325446322391638],[2020,0.10144649870677268],[2021,-0.11980013246630361],[2022,0.058669312334890256],[2023,0.09704690568366717],[2024,0.12790344157329064],[2025,0.20181841599878514]]; median 0.10380420189667124. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 1.3 billion of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Dividend observations: [[2016,1267000000],[2017,1159000000],[2018,1246433537],[2019,1634000000],[2020,814000000],[2021,421000000],[2022,474000000],[2023,533000000],[2024,552000000],[2025,606462300]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://filings.xbrl.org/5493001Z3ZE83NGK8Y12/2025-12-31/ESEF/GB/0/5493001Z3ZE83NGK8Y12-2025-12-31/reports/5493001Z3ZE83NGK8Y12-2025-12-31-T01.html (filed 2026-04-07); FY2025: cash repurchases 1278267340 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); PRU.LSE SharesStats.PercentInsiders = 0.307 percentage points; cache date 2026-10-16.

### What could break it

The sensitivity of shareholder equity and CSM to insurance risks is set out in note C6.2.

- Source: https://filings.xbrl.org/5493001Z3ZE83NGK8Y12/2025-12-31/ESEF/GB/0/5493001Z3ZE83NGK8Y12-2025-12-31/reports/5493001Z3ZE83NGK8Y12-2025-12-31-T01.html (filed 2026-04-07); In relation to reinsurance contracts held, the probability weighted estimates of the present value of future cash flows include the potential credit losses and losses from other disputes to reflect the non-performance risk of the reinsurers. The sensitivity of shareholder equity and CSM to insurance risks is set out in note C6.2. Expense assumptions used in future cash flow estimation Insurance acquisition cash flows (as discussed below) and other costs that are incurred in fulfilling contracts comprise both direct costs and an allocation of fixed and variable overheads incurred by the insurance entities.

### What the price says

The price assumes profits grow 1.5% a year forever.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-07); Price 899.4; FX 75.34943299551671; original perpetual distributable cash 1.0192337209187392; discount 0.1; growth 0.014611204179299841. Same book-value model and 4× ceiling; no ten-year operating fade applies. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 1,101.90 per share

- 2016-11: GBX 1,278.60 per share

- 2016-12: GBX 1,343.83 per share

- 2017-01: GBX 1,264.97 per share

- 2017-02: GBX 1,327.31 per share

- 2017-03: GBX 1,392.13 per share

- 2017-04: GBX 1,416.90 per share

- 2017-05: GBX 1,433.42 per share

- 2017-06: GBX 1,454.06 per share

- 2017-07: GBX 1,525.90 per share

- 2017-08: GBX 1,499.06 per share

- 2017-09: GBX 1,475.12 per share

- 2017-10: GBX 1,529.20 per share

- 2017-11: GBX 1,534.98 per share

- 2017-12: GBX 1,573.37 per share

- 2018-01: GBX 1,573.79 per share

- 2018-02: GBX 1,511.45 per share

- 2018-03: GBX 1,468.51 per share

- 2018-04: GBX 1,547.78 per share

- 2018-05: GBX 1,495.34 per share

- 2018-06: GBX 1,432.18 per share

- 2018-07: GBX 1,490.39 per share

- 2018-08: GBX 1,432.59 per share

- 2018-09: GBX 1,452.82 per share

- 2018-10: GBX 1,296.76 per share

- 2018-11: GBX 1,271.99 per share

- 2018-12: GBX 1,157.63 per share

- 2019-01: GBX 1,226.58 per share

- 2019-02: GBX 1,312.86 per share

- 2019-03: GBX 1,269.52 per share

- 2019-04: GBX 1,432.59 per share

- 2019-05: GBX 1,302.54 per share

- 2019-06: GBX 1,416.90 per share

- 2019-07: GBX 1,402.04 per share

- 2019-08: GBX 1,129.56 per share

- 2019-09: GBX 1,217.91 per share

- 2019-10: GBX 1,303.94 per share

- 2019-11: GBX 1,331.01 per share

- 2019-12: GBX 1,401.12 per share

- 2020-01: GBX 1,307.32 per share

- 2020-02: GBX 1,225.13 per share

- 2020-03: GBX 1,001.28 per share

- 2020-04: GBX 1,091.21 per share

- 2020-05: GBX 1,012.40 per share

- 2020-06: GBX 1,178.24 per share

- 2020-07: GBX 1,068.97 per share

- 2020-08: GBX 1,181.14 per share

- 2020-09: GBX 1,072.35 per share

- 2020-10: GBX 911.65 per share

- 2020-11: GBX 1,130.86 per share

- 2020-12: GBX 1,302.49 per share

- 2021-01: GBX 1,133.76 per share

- 2021-02: GBX 1,361.96 per share

- 2021-03: GBX 1,489.60 per share

- 2021-04: GBX 1,483.79 per share

- 2021-05: GBX 1,451.40 per share

- 2021-06: GBX 1,328.11 per share

- 2021-07: GBX 1,311.68 per share

- 2021-08: GBX 1,464.94 per share

- 2021-09: GBX 1,455.00 per share

- 2021-10: GBX 1,494.50 per share

- 2021-11: GBX 1,276.00 per share

- 2021-12: GBX 1,274.50 per share

- 2022-01: GBX 1,235.50 per share

- 2022-02: GBX 1,136.50 per share

- 2022-03: GBX 1,134.00 per share

- 2022-04: GBX 1,010.00 per share

- 2022-05: GBX 1,037.50 per share

- 2022-06: GBX 1,016.00 per share

- 2022-07: GBX 1,006.00 per share

- 2022-08: GBX 903.60 per share

- 2022-09: GBX 893.80 per share

- 2022-10: GBX 810.80 per share

- 2022-11: GBX 979.40 per share

- 2022-12: GBX 1,127.50 per share

- 2023-01: GBX 1,339.50 per share

- 2023-02: GBX 1,269.50 per share

- 2023-03: GBX 1,102.00 per share

- 2023-04: GBX 1,211.50 per share

- 2023-05: GBX 1,056.00 per share

- 2023-06: GBX 1,108.50 per share

- 2023-07: GBX 1,082.50 per share

- 2023-08: GBX 966.20 per share

- 2023-09: GBX 888.80 per share

- 2023-10: GBX 857.80 per share

- 2023-11: GBX 863.00 per share

- 2023-12: GBX 887.20 per share

- 2024-01: GBX 818.40 per share

- 2024-02: GBX 777.60 per share

- 2024-03: GBX 743.00 per share

- 2024-04: GBX 701.00 per share

- 2024-05: GBX 747.00 per share

- 2024-06: GBX 718.40 per share

- 2024-07: GBX 699.20 per share

- 2024-08: GBX 652.00 per share

- 2024-09: GBX 694.60 per share

- 2024-10: GBX 644.60 per share

- 2024-11: GBX 641.80 per share

- 2024-12: GBX 637.00 per share

- 2025-01: GBX 678.20 per share

- 2025-02: GBX 727.40 per share

- 2025-03: GBX 826.20 per share

- 2025-04: GBX 791.80 per share

- 2025-05: GBX 844.80 per share

- 2025-06: GBX 912.60 per share

- 2025-07: GBX 963.80 per share

- 2025-08: GBX 988.60 per share

- 2025-09: GBX 1,041.00 per share

- 2025-10: GBX 1,055.00 per share

- 2025-11: GBX 1,093.50 per share

- 2025-12: GBX 1,144.50 per share

- 2026-01: GBX 1,204.50 per share

- 2026-02: GBX 1,137.50 per share

- 2026-03: GBX 1,038.00 per share

- 2026-04: GBX 1,098.00 per share

- 2026-05: GBX 1,071.50 per share

- 2026-06: GBX 1,003.00 per share

- 2026-07: GBX 1,116.00 per share

- 2026-08: GBX 1,018.00 per share

- 2026-09: GBX 931.40 per share

- 2026-10: GBX 893.40 per share

## Annual estimated value (GBX per share)

- FY2016: low GBX 259.06 per share, central GBX 323.82 per share, high GBX 431.76 per share

- FY2017: low GBX 626.28 per share, central GBX 782.85 per share, high GBX 1,043.80 per share

- FY2018: low GBX 530.89 per share, central GBX 583.98 per share, high GBX 648.86 per share

- FY2019: low GBX 72.45 per share, central GBX 90.56 per share, high GBX 120.75 per share

- FY2021: low GBX 759.15 per share, central GBX 835.07 per share, high GBX 927.85 per share

- FY2022: low GBX 765.60 per share, central GBX 842.16 per share, high GBX 935.73 per share

- FY2023: low GBX 807.27 per share, central GBX 888.00 per share, high GBX 986.66 per share

- FY2024: low GBX 807.14 per share, central GBX 887.85 per share, high GBX 986.50 per share

- FY2025: low GBX 1,426.64 per share, central GBX 1,783.30 per share, high GBX 2,377.74 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:07.138Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/5493001Z3ZE83NGK8Y12/2025-12-31/ESEF/GB/0/5493001Z3ZE83NGK8Y12-2025-12-31/reports/5493001Z3ZE83NGK8Y12-2025-12-31-T01.html); period 2025-12-31, filed 2026-04-07.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations

- [Sarah Ketterer](https://gigainvestors.com/CAU): 1,689,218 PUK shares; USD 45,288,000 reported position value; 0.49% of portfolio; add; quarter 2026 Q2.
- [Bill Nygren](https://gigainvestors.com/HA): 7,635 PUK shares; USD 205,000 reported position value; 0% of portfolio; new; quarter 2026 Q2.