Prudential announced today its intention to demerge its UK and Europe business, M&G Prudential, resulting in two separately-listed companies.
It said as a standalone entity, M&G will be led by its current chief executive John Foley (pictured) and continue its transformation into a more capital-efficient and customer-focused business.
What's more, M&G will also sell £12.0 billion ($16.77 billion) of its shareholder annuity portfolio to Rothesay Life. The capital benefit of this transaction will be retained within Prudential to support the demerger process.
'Following separation, M&G Prudential will have more control over its business strategy and capital allocation,' said Mike Wells, group chief executive.
'This will enable it to play a greater role in developing the savings and retirement markets in the UK and Europe through two of the financial sector's most trusted brands, while Prudential will be able to focus on the attractive returns and growth potential of its market-leading businesses in Asia and the US,' he said.
Managing approximately $170 billion in assets, in Asia, Eastspring Investments is the Singapore asset management business of Prudential.
Commenting on the announcement, an Eastspring spokesperson told Citywire Asia: 'Prudential’s Asia businesses will be part of an international group that is entirely focused on increasing the investment needed to extend our leadership positions and to capture growth in some of the most exciting markets in the world.'
Following the demerger, Prudential will remain headquartered in the UK and retain its listing on the London Stock Exchange (LSE), its primary listing in Hong Kong, and other listings in Singapore and New York.
M&G will be headquartered in the UK and hold listing on the LSE.