What ever happened to diversification, eh? The latest market wisdom is that global life assurance group Prudential (PRU) should ditch its UK operations: it makes better returns in Asia than in its domestic market. The question has been given further weight by the company's decision, alongside this week's interims, to merge its UK operations. Standard Life Aberdeen, meet M&G Prudential: the names are more functional than imaginative. Click here for more on the decision and on Prudential's decent first-half results.
"Y'all think small, I think Biggie," raps Jay-Z on his latest effort. Those pushing for a split of the Pru could be accused of the same. Part of the story of HSBC's (HSBA) resilience in recent times has been the spread of its operations: it has not ditched a competitive UK mortgage market – yet – and why would it, as (most of) the world's local bank?
Life assurance is perhaps a more atomised industry than banking, but losing one of its three major bases (the US being the other) may not be a good long-term bet. Still, those investing in Prudential for growth, given the income isn't up to much, are more than entitled to ask where their interests are best served. Worth more of a dig, that one.