British insurance giant, Prudential, has announced that it will split into two separate companies, dividing its UK business from its US and Asian operations.
According to the plan, Prudential shareholders will be left with shares in two companies — Prudential plc, which will house the US, Asian and African operations, and M&G Prudential.
In a statement, the company said: “We have announced our intention to demerge our UK & Europe business, M&G Prudential, resulting in two separately listed companies with distinct investment prospects. M&G Prudential is one of the leading retirement and savings businesses in the UK & Europe, offering compelling product propositions through its range of investment solutions, and will be an independent, capital-efficient business, headquartered and premium-listed in London. Prudential plc will combine the exciting growth potential of our Asian, US and African markets, representing a leading international insurance and asset management group focused on the markets that offer the most attractive growth opportunities globally. We will also remain headquartered and premium-listed in London.
Prudential also announced the sale of a £12bn book of UK annuities to Rothesay Life, in a deal that has been under discussion since last year.