U.S.'s Biggest Insurer Just Reported Huge Profit Decline - Here's Why
The United States's largest life insurance firm by assets, Prudential Financial, felt the dual sting of the pandemic and low interest rates in 2020. The company posted its first annual loss since 2013, with final figures from 2020 showing a net loss of -$374 million. In the fourth quarter, profit plummeted by -27%, though the company still managed to post net income of $819 million. In the same quarter last year, profit was $1.13 billion.
The pandemic's impact on business is a more obvious reason major U.S. companies felt profit pressure in 2020. Less obvious is why interest falling interest rates would matter to the business. Here's why -- insurance companies like Prudential generally rely on high yielding bonds to generate interest on money being held to pay out benefits. When interest rates fall and earnings on those bonds fall with them, margins get squeezed and the insurance company is less profitable.
All insurance companies faced the same pressures as Prudential, but some fared better than others. Below, Tickeron's A.I.dvisor runs a full analysis of players in the Insurance industry, with trade ideas to go along with it. Overall, A.I.dvisor is bullish on the sector.
PUK in -1.08% downward trend, sliding for three consecutive days on July 02, 2025
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where PUK declined for three days, in of 278 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for PUK moved out of overbought territory on June 27, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 59 cases where PUK's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 09, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on PUK as a result. In of 84 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for PUK turned negative on July 02, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
PUK broke above its upper Bollinger Band on June 25, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where PUK advanced for three days, in of 297 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 187 cases where PUK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. PUK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.465) is normal, around the industry mean (1.496). P/E Ratio (15.339) is within average values for comparable stocks, (39.438). Projected Growth (PEG Ratio) (0.424) is also within normal values, averaging (0.675). Dividend Yield (0.022) settles around the average of (0.124) among similar stocks. P/S Ratio (2.179) is also within normal values, averaging (2.172).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. PUK’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock worse than average.
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General Information
a holding company with interest in providing insurance and financial services
Industry LifeHealthInsurance
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