Management addresses market demands at Jefferies call

Debt leverage remains within substantial headroom.

Jefferies hosted a conference call with Prudential's CEO and CFO, emphasising their receptive stance amid recent market concerns. Despite Prudential's strong performance, with a 47% growth in FY 2023, the share price has declined significantly after the Hong Kong-China border reopening.

In a Jefferies research note, it said that management acknowledged investor feedback, signalling openness to potential buybacks, and aligning with market demands, despite the firm’s belief in the importance of growth focus. 

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Whilst management stressed discipline in pursuing bancassurance deals, debt leverage remains within substantial headroom, demonstrating successful deleveraging efforts. Investor questions primarily focused on bear arguments, including challenges in free surplus and operating variances, which management addressed comprehensively. 

Ongoing investor feedback will continue to shape decision-making, notably as management meets with US investors this week.