Pru seeks investors to buy AIG Asian business

by Gill Montia

Story link: Pru seeks investors to buy AIG Asian business

Prudential is reported to have appointed Credit Suisse to advise on acquisitions it may make from American International Group (AIG), the beleaguered US insurer that has been twice bailed out by the Federal Reserve.

In the current market conditions, Prudential is unlikely to attempt to raise funds for any purchases via a rights issue, particularly as its share price slid sharply at the end of this week, on fears of the fall out of turbulent markets on the capital strength of insurance companies.

Credit Suisse will therefore be talking on its behalf to potential investors.

According to a report in The Sunday Telegraph, Prudential is most interested in AIG’s operations in Asia, excluding Japan.

The group continues to experience strong growth in the region; in July, Pru chief executive, Mark Tucker, reported that Asian business has grown at a 25% annual compound rate over 14 years, with a significant acceleration of that growth in the past 10 years.