June 13, 2019 / 10:51 AM / 5 months ago

BUZZ-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)

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