Prudential's latest results announcement has shown a reduction of 27% in the group's profits.
Prudential recently decided to leave bonuses for the Prudence Bond at 3.5%. They also left with profit bonuses for endowments at the same levels. However, pension bonuses fell by 0.25% to 3.25%.
Our View
Even though Prudential has made lower profits throughout the group, they have managed to increase their free assets to 10.5%. The figure last year was 8.4%. This basically means that Prudential has become a stronger company over the last year with more assets above their liabilities.
This should give investors confidence, especially as no major bonus cuts have been made. Prudential must have done something right last year with their own investments.