Berenberg Starts Prudential Plc Coverage at Buy Amid Growing Exposure in Asia

03:42 AM EDT, 09/04/2026 (MT Newswires) -- Berenberg began its coverage of Prudential Plc (PRU.L) with a buy rating and price target of 14.45 pounds sterling, highlighting the British insurer's expanding life and health insurance footprint in Asia, particularly China. "There are three reasons to buy Prudential (Pru) now: a) the insurer is geared towards rising demand for life insurance in China, both through its mainland joint venture (JV) with CITIC and through its Hong Kong unit, which sells to visitors from the mainland; b) Pru offers rising exposure to health insurance, a business with a short payback period and attractive margins; and c) thanks to strong management, the company is fast rebuilding its free surplus generation, a metric that drives cash distribution but that almost stopped growing during the 2020-22 COVID-19-linked lockdowns," according to a Thursday note. "Furthermore, we believe the risk-reward balance is compelling, with downside risk of, we estimate, c10% - which the stock experienced in the first week of August on adverse news about Chinese taxation of life policies bought in Hong Kong - and upside potential, based on its 2027 growth guidance, of an estimated c40% to our GBp1,445 price target," analysts said, adding that they believe mainlaind Chinese visitors are purchasing policies in Hong Kong primarily for investment and currency flexibility instead of tax reasons. The research firm also noted Prudential's pivot toward "increasingly shareholder-friendly capital management," pointing to the insurer's 2024 launch of a $2 billion share buyback and its commitment to return more than $7 billion to investors between 2024 and 2027. Berenberg forecasts a total shareholder return of $7.8 billion.