Will Prudential be split into three separate firms

Prudential and AIA deal collapses

Prudential could be broken up as bosses at the pension giant try to manage the impact of the world’s ageing population.

The firm has begun a review of its £45billion pension liabilities – possibly triggering a split into three separate firms focused on the UK, the US and Asia. It has hired Clare Bousfield to head the probe after she helped to sell Aegon’s £9billion annuity portfolio. The Pru’s annuities operation serves hundreds of thousands of British pensioners, whose nest eggs could move to a new business if the change goes ahead.

An even more drastic approach would see the company sell its whole British pensions operation – possibly as part of a wider break-up. If that happened, its only remaining UK operation would be asset management business M&G. If Prudential pushes ahead with a sale, potential buyers are likely to include Rothesay Life and Pension Insurance Corporation.  A spokesman said: ‘We do not comment on market speculation.’  Shares closed up 0.77 per cent at 1,627.5p on Friday.

 

 

Posted on by CCKeith in Uncategorized
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