Prudential

PUK

Market cap $34.1B

Investors interested in Insurance - Multi line stocks are likely familiar with Principal Financial (PFG) and Prudential (PUK). But which of these two stocks is more attractive to value investors?

Prudential plc is a pure-play life and health insurer, uniquely positioned to capitalise on rapid regional insurance market growth in Asia. Prudential plc's robust multi-channel distribution, strong 1H 2025 results, and capital-efficient asset management drive consistent profit and margin expansion. The stock trades at a significant discount to its embedded value (EV), offering around 36% upside potential if re-rated to peer multiples.

Investors looking for stocks in the Insurance - Multi line sector might want to consider either Aegon NV (AEG) or Prudential (PUK). But which of these two stocks presents investors with the better value opportunity right now?

Prudential PLC's (LSE:PRU) interim results and long-awaited capital management update were mostly better than expected but analysts said promised shareholder returns might be lower than some investors were looking for. The FTSE 100 life insurer upgraded its capital distribution guidance as the business shifts to focusing on total shareholder returns.

Prudential plc (NYSE:PUK ) Q2 2025 Earnings Conference Call August 27, 2025 4:30 AM ET Company Participants Anil Wadhwani - CEO & Executive Director Benjamin James Bulmer - Chief Financial Officer John Cai - Regional CEO for Malaysia, Indonesia, Vietnam & Agency Patrick Bowes - Head of Investor Relations Conference Call Participants Abid Hussain - Panmure Liberum Limited, Research Division Andrew Sinclair - BofA Securities, Research Division Andrew John Crean - Bernstein Autonomous LLP Dominic Alexander O'Mahony - BNP Paribas Exane, Research Division Farooq Hanif - JPMorgan Chase & Co, Research Division Larissa Van Deventer - Barclays Bank PLC, Research Division Nasib Ahmed - UBS Investment Bank, Research Division Thomas Wang - Goldman Sachs Group, Inc., Research Division Yuping Ma - Citigroup Inc., Research Division Operator Good morning, everybody, and thank you for joining us on today's Prudential Half Year Results 2025. My name is Drew, and I'll be the operator on today's call.

Insurer Prudential PLC , on Wednesday reported a 12% rise in new business profit for the first half due to better performance across most of its markets, while it also announced a cumulative $1.1 billion buyback over the next two years.

If you are looking for stocks that are well positioned to maintain their recent uptrend, Prudential (PUK) could be a great choice. It is one of the several stocks that passed through our "Recent Price Strength" screen.

UBS expects Prudential PLC (LSE:PRU) to increase its dividend and share buybacks to about 65% of the company's free cash flow available for shareholders, but says a payout higher than this is unlikely. This payout ratio represents the portion of Prudential's surplus cash that the company can safely return to investors without risking its financial stability.

Steven Cress, Seeking Alpha's VP of Quantitative Strategy, on this very volatile year. Despite 2025's volatility, sticking with fundamentally strong, high-momentum stocks—especially those with solid dividends—has proven highly rewarding as fear fades.

Prudential remains undervalued, trading below embedded value, with the market applying a negative multiple to the new business profits despite its strong Asian franchise. If PUK's new business multiple re-rates to just 0x, shares could see 12% upside, with further gains from ongoing new business profit growth. If it further re-rates to be in line with the regional peer, AIA, the upside could be as significant as almost 50%.