Deals
Prudential to Split Firm by Spinning Off U.K. Operations
- M&G Prudential likely to be part of FTSE 100 after demerger
- Rothesay Life to acquire annuities as Pru goes capital light
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Prudential Plc soared on plans to split the firm by spinning off its U.K. operations, a move that will create an insurance business focused on faster-growth markets in Asia, Africa and the U.S.
Investors will receive shares in M&G Prudential, formed last year through the combination of its U.K. asset-management business with European insurance assets. Both firms are likely to be included in the benchmark FTSE 100 Index of the U.K.’s biggest companies. Ahead of the demerger, Britain’s largest insurer will also sell 12 billion pounds ($16.7 billion) of annuities to Rothesay Life.