Prudential Plc: JP Morgan views limited capital release, valuation post demerger

** Prudential Plc's valuation capped at 10% upside on either sum-of-parts or cash flow basis, JP Morgan writes in a note

** PRU said in March it would spin off UK and European businesses, demerge M&G Prudential into separate co

** JPM, on investor perception of capital release post demerger, says it thinks there is limited excess capital even as PRU will not have to follow Solvency II

** Brokerage says if possible PRU should consider deleveraging a bit of UK and international businesses

** Also views PRU's cash flows to holding co good enough to maintain current dividend run rate post de-merger

** PRU shares up 0.5% on Thursday, YTD up ~16% vs FTSE 350 Insurance index ~15% gain this year (Reporting by Yadarisa Shabong in Bengaluru)

2019-06-13 12:50:09

© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.