Pru­den­tial to spin off UK, Euro­pean busi­ness

The Sun (Malaysia) - - SUNBIZ -

LON­DON: Bri­tain’s Pru­den­tial (PRU.L) is to spin-off its UK and Euro­pean di­vi­sion from its in­ter­na­tional busi­nesses as part of a rad­i­cal break-up of the 170-year-old com­pany.

The FTSE 100 in­sur­ance gi­ant said yes­ter­day that it planned to de­merge M&G Pru­den­tial into a sep­a­rate com­pany with a pre­mium list­ing on the Lon­don Stock Ex­change and based in the UK cap­i­tal.

The split will leave Pru­den­tial as a com­pany fo­cused on Asia, the United States and Africa. It will re­main head­quar­tered and listed in Lon­don and led by present CEO Mike Wells. John Foley, who cur­rently heads up the M&G Pru­den­tial di­vi­sion, will steer that busi­ness through the de­merger.

“The de­ci­sion to de­merge M&G Pru­den­tial fol­lows a rig­or­ous re­view by the board which con­sid­ered all op­tions, in­clud­ing the sta­tus quo, and con­cluded that it is in the best in­ter­est of the group to op­er­ate as two sep­a­rately-listed com­pa­nies, able to fo­cus on their dis­tinct strate­gic pri­or­i­ties in their cho­sen ge­ogra­phies,” Paul Man­d­uca, Pru­den­tial’s chair­man, said.

It came as Pru­den­tial an­nounced the sale of a £12 bil­lion (RM65.2 bil­lion) UK an­nu­ities book to Rothe­say Life and posted an­nual re­sults for 2017, which showed a 6% rise in op­er­at­ing prof­its to £4.7 bil­lion. That beat mar­ket ex­pec­ta­tions of £4.6 bil­lion. – Reuters

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