Prudential Plc reveals demerger plans - includes £12 billion sale
Mar 15, 2018, 02:31
Jason Hollands of Tilney Investment said: "The news that Prudential is to split and spin-out its asset management dominated M&G Prudential business as a separately listed United Kingdom company is arguably a long overdue development".
Rating actions include a downgrade of The Prudential Assurance Company Ltd's (PAC) and Prudential's USA subsidiaries" (collectively Jackson) Insurer Financial Strength (IFS) Ratings to "AA-' from "AA". John Foley, the current head of M&G Prudential, will remain in charge of that business. Eastspring will continue to serve as the Asian asset manager for Prudential, while M&G Investments will serve that function for Prudential M&G.
Given the size of the deal it will boost Rothesay Life's asset base to over £37 billion, which will make the firm the largest specialist annuity insurer in the UK.
The capital benefit from the transition, it said, would be retained within the group to support the demerger process.
The move is created to help Prudential focus on its lucrative Asian, US and African operations while giving M&G Prudential "more control" over its own business strategy and the way that it allocates capital. Looking forward, we believe we will be better able to focus on meeting our customers' rapidly evolving needs and to deliver long-term value to investors as two separate businesses.
Separately on Wednesday, Prudential also said that it plans to sell off a £12bn United Kingdom annuities book to Rothesay Life.
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.
Prudential will remain headquartered in London, under current chief executive Mike Wells.
Prudential raised its full year dividend by 8% to 47p per share even as underlying free surplus capital generation fell by 1% to £3.6bn due to an increase in restructuring costs and a lower contribution from our U.S. business.
Its Asia business jumped 15 per cent in operating profits, compared with a 10 per cent increase in its United Kingdom and European division.
Prior to the demerger, the group's debt capital position will be re-balanced across Prudential and M&G Prudential, which may include the redemption or debt liability management of issued debt, and new debt issuance. Discussions have also commenced with our other key stakeholders, including rating agencies. "However, it's a shame the sale proceeds aren't coming back to shareholders, especially given that it's freeing up significant regulatory capital".
Tiger Woods said it after his nailbiting runner-up finish in the Valspar Championship: "I've missed this". Sports also saw a record 3.26 overnight rating on Saturday for its coverage of the third round.
Marquette has another must-win game with Depaul to start, then they will LIKELY have to beat Villanova to get into the Big Dance. The Cardinals also lost five-star freshman Brian Bowen, who was held out of practices and games before transferring to SC .
He plans to send another day in Nairobi before heading to N'Djamena, Chad, and Abuja, Nigeria, on Monday and Tuesday. Tillerson is four days into his first diplomatic trip to Africa, where he has visited Ethiopia, Djibouti and Kenya.
Ichiro has been working out in Japan and was expected to play there in 2018 unless he had an offer from Major League Baseball . According to Bob Nightengale of USA Today , the Seattle Mariners are close to signing a one-year deal with the 44-year-old.
Chancellor Angela Merkel's party remained the biggest force in the German Parliament despite the rise of the anti-immigrant AfD. The vote is being held under a complex new electoral law that could mean the final result will not be clear until late today.
Dianne Feinstein (D-Calif.), a sponsor of federal proposed bump stock legislation, said in a February statement . The devices will remain on the market until the regulation is approved by the Office of Management and Budget.
He'll have to prove his 2017 season wasn't a fluke, but Fuller's Bears future is much brighter than it was just a year ago. The franchise tag would have cost the Bears $14.975 million (average of the top five CB salaries) for Fuller this year.
Jay-Z (L) and Beyonce perform onstage during the " On The Run Tour: Beyonce And Jay-Z" on July 24, 2014 in Chicago , Illinois. The tour closed with two global dates in Paris, France that was filmed for an HBO special that received an Emmy nomination.
Chinese Foreign Minister Wang Yi said Saturday that the recent USA decision has "no basis", according to local media. State Councilor Yang Jiechi, China's top diplomat, also visited Washington in early February.
EU, Japan seek to be excluded from U.S. tariffs in talks
Japan, the United States' top economic and military ally in Asia, is among the other nations seeking to join the exemption list. According to the group, Trump's decision is "undermining the WTO rules and disrupting the worldwide trade order".
Sherman, 49ers to meet Saturday
Sherman expects to be ready for the regular season but could be limit in August for training camp and parts of the preseason. He tore his Achilles tendon in November. "I want to go to a contender", Sherman said Friday on KIRO radio in Seattle.
PS4 Update 5.50 Is Out Now
Supersampling allows 1080p TV owners to benefit from PS4 Pro resolution enhancements in the games that support it. The dreaded notification centre has been updated again, and you're now able to delete old notifications in bulk.
Washington State Approves Its Own Net Neutrality Rules
It also requires internet providers to disclose information about their management practices, performance and commercial terms. If other states follow Washington's lead, ISPs in those states would also operate under different rules.
North Korea Has Suggested It Is Open To Talks With US
People watch a TV screen showing North Korean leader Kim Jong Un at the Seoul Railway Station in Seoul, South Korea, 07-03-2018. New Delhi has been cutting back on trade with North Korea but has maintained diplomatic links.
20-year-old Sues Dick's, Walmart Over new gun Policies
Within a week of retailers announcing gun sales bans on adults younger than 21, a lawsuit in OR is seeking to test those policies. Knox Merkle, 19, of Moscow, said people should not be prevented from purchasing firearms just due to their age.
France to set age of sexual consent after rape outcry
The reform on Tuesday comes following two recent cases where men avoided rape charges despite having sex with 11-year-old girls . France plans to fix the legal age of sexual consent as 15, meaning sex with someone younger than that would be considered rape.