Prudential Financial Inc PRU

Prudential Financial Has Some Headwinds in Its Japan Business

Prudential Financial is shifting its resources to focus more on fast-growing areas, such as institutional retirement, group insurance, and investment management. This strategy aims to transform the business into a higher-growth, less market-sensitive, and more capital-efficient firm. Overall, we like the steps that the company has taken, including reinsuring a portion of its traditional variable annuity portfolio and guaranteed universal life policies. While the firm has made some positive moves to reduce risk, we don't believe that it will achieve significantly high profits in the long run.