Couples keep heads in the sand over finances
by Gill Montia
Story link: Couples keep heads in the sand over finances
One in seven (14%) UK couples over the age of 40 – or around 4.2 million people – admit they have never jointly discussed their finances, according to new research from Prudential. Fears about having awkward conversations is driving the behaviour, with 15% of those surveyed admitting they feel uncomfortable talking to their partners about [...]
Prudential fined £50k for customer account error
by Gill Montia
Story link: Prudential fined £50k for customer account error
The Information Commissioner’s Office (ICO) has fined Prudential £50,000 after a mix-up over the administration of two customers’ accounts led to tens of thousands of pounds, meant for an individual’s retirement fund, ending up in the wrong account. The original error was caused when the records of both customers, who share the same first name, [...]
Prudential expands in Thailand with partnership and acquisition
by Gill Montia
Story link: Prudential expands in Thailand with partnership and acquisition
Prudential and Thanachart Bank have agreed an exclusive 15-year partnership to develop jointly their bancassurance business in Thailand. In addition, Prudential Thailand will acquire 100% of Thanachart Life Assurance Company, a wholly-owned subsidiary of the bank, for around £358 million. According to Prudential, life insurance penetration in Thailand remains low at only 2.7% and the [...]
Prudential new business profit up 17%
by Gill Montia
Story link: Prudential new business profit up 17%
Prudential has continued to deliver strong growth, with group-wide new business profit up 17% in the first quarter of 2011, compared with the previous three-month period, to £498 million. In Asia, new business profit increased 16% with the region “well positioned” to achieve 2013 objectives, while Pru’s US business benefited from a 26% rise in [...]
Pru bungles pension fund valuations
by Gill Montia
Story link: Pru bungles pension fund valuations
Prudential is contacting 39,000 pension customers whose funds have been incorrectly valued, The Daily Telegraph reports. According to the newspaper, the Pru will be paying out £4 million over mis-pricing errors affecting Scottish Amicable unit-linked pension plans between June 2004 and December 2008. Problems occurred over the allocation of tax on income earned on unit-linked [...]
Prudential appoints group chief risk officer
by Gill Montia
Story link: Prudential appoints group chief risk officer
Prudential has announced the appointment of John Foley as group chief risk officer and executive director on the insurer’s board, from 1st January 2011. The 54-year-old, who is currently chief executive of Prudential Capital and group treasurer, succeeds Thibaut Le Maire, who is leaving to join HSBC. Prior to joining Prudential as deputy group treasurer [...]
Prudential outlines Asian growth targets
by Gill Montia
Story link: Prudential outlines Asian growth targets
Prudential is outlining new growth and profitability targets for Asian markets at an investor conference being held today. Group chief executive, Tidjane Thiam, is unveiling plans for the company to double the 2009 value of its Asian life and asset management pre-tax operating profit in 2013 (2009: £465 million), alongside a similar achievement for new [...]
Prudential to acquire AIG businesses in Japan
by Richard Kilner
Story link: Prudential to acquire AIG businesses in Japan
American International Group, Inc. (AIG) has announced that it is to sell its Japan-based life insurance businesses subsidiaries, AIG Star Life Insurance Co., Ltd. and AIG Edison Life Insurance Company to Prudential Financial, Inc. The deal is worth a total of $4.8bn, including $4.2bn in case and $600m in the assumption of third party debt. [...]
Ex Pru chief executive to head AIA
by Gill Montia
Story link: Ex Pru chief executive to head AIA
In a strange twist, former Prudential chief executive, Mark Tucker, has been named as the new head of AIA, replacing Mark Wilson. Prudential only abandoned its plans to acquire AIA in June, having initially agreed to acquire the pan-Asian subsidiary of US insurer AIG, for £24 billion. However, leading Pru shareholders were unhappy with the [...]
Prudential reports 27% rise in sales
by Gill Montia
Story link: Prudential reports 27% rise in sales
In a trading update published ahead of today’s Annual General Meeting, Prudential has reported group-wide sales of £1,355 million for the first five months of 2010, up 27% on a year earlier. The insurer saw Asian sales rise 33%, to £579 million, and achieved record retail sales in the US of £454 million, up 41% [...]
Prudential abandons AIA acquisition
by Gill Montia
Story link: Prudential abandons AIA acquisition
Prudential has abandoned its plans to acquire AIA, the BBC has reported. The group agreed to acquire the pan-Asian life insurance subsidiary of US insurer AIG in March, for £24.6 billion, but leading Pru shareholders were unhappy with the price and efforts to renegotiate failed. Yesterday, AIG announced that would only adhere to the original [...]
Prudential fails to reduce the price of AIA
by Gill Montia
Story link: Prudential fails to reduce the price of AIA
American International Group (AIG) is refusing to budge on its original sale price for AIA Group. Prudential agreed to acquire the pan-Asian life insurance subsidiary in March, for over £24 billion in cash and shares. AIA traces its roots in the Asia Pacific region back more than 90 years and currently operates across 15 geographical [...]
Mumford urges caution over Pru rights issue
by Richard Kilner
Story link: Mumford urges caution over Pru rights issue
In response to Prudential’s record-breaking rights issue of £14.5bn, stock market veteran Paul Mumford, Senior Fund Manager at Cavendish Asset Management, has warned shareholders to be wary. Mumford states that new shares will be discounted by 80%, from Friday’s closing price of 542.5p to 104p, and permit Prudential to proceed with its $35.5bn acquisition of [...]
Pru proceeds with rights issue as sales rise 26%
by Gill Montia
Story link: Pru proceeds with rights issue as sales rise 26%
Prudential has published the terms of its £14.5 billion rights issue needed to fund the group’s acquisition of AIA, the Asian business of AIG. The issue of new shares is being made on the basis of 11 rights issue shares for every two existing shares, at an issue price of 104 pence per share. The [...]
Comment on the Pru’s faltering AIA deal
by Richard Kilner
Story link: Comment on the Pru’s faltering AIA deal
James Chappel, Financial Strategist at Olivetree Securities, has commented on Prudential’s announcement to postpone the publication of its prospectus relating to the AIA acquisition. According to Chappel the decision indicates that Prudential is aware it has a job to do in persuading its shareholders to back the deal. He went on to say that two [...]
Pru’s fundraising stumbles on capital strength concerns
by Gill Montia
Story link: Pru’s fundraising stumbles on capital strength concerns
Prudential’s £14 billion rights issue has hit a snag. The prospectus for the fundraising, needed to back Pru’s acquisition of AIA, the Asian business of AIG, should have been circulated today. However, according to reports, the Financial Services Authority has concerns over Prudential’s capital strength and has called a temporary halt to proceedings. The controversial [...]
Resolution prepares for Prudential UK assets bid
by Gill Montia
Story link: Resolution prepares for Prudential UK assets bid
Clive Cowdery’s Resolution Ltd has secured funding to bid for UK assets of Prudential, The Daily Telegraph reports. Prudential is in the process of acquiring AIA, the Asian business of the troubled American International Group, in a £23 billion cash and shares deal. The insurer has announced plans to raise funds via a £13 billion [...]
UK disposals could support Pru’s AIA acquisition
by Gill Montia
Story link: UK disposals could support Pru’s AIA acquisition
Prudential is reported to be considering pulling out of the UK in favour of Asian markets. The insurer is in the process of acquiring AIA from the troubled American International Group, in a bid to become South East Asia’s leading insurer. A £23 billion cash and shares deal has been agreed, with plans to raise [...]
Comment on Prudential’s acquisition of AIA
by Richard Kilner
Story link: Comment on Prudential’s acquisition of AIA
James Chappell, financials strategist at Olivertree Securities, has commented on the proposed acquisition of AIA Group Ltd by Prudential. Chappell has said that unhappiness amongst shareholders regarding the AIA acquisition had been known about for some time. He went on to say that there was no easy transaction to effect a break-up of the Prudential, [...]
Prudential’s AIA acquisition under threat
by Gill Montia
Story link: Prudential’s AIA acquisition under threat
Prudential’s controversial plans to acquire AIA, the Asian business of US insurer AIG, could be in jeopardy. According to a report in The Times, the Pru’s biggest shareholder, Capital Group, is understood to be working with three UK insurers on a consortium bid for Prudential. The newspaper names Resolution Ltd and Aviva as involved in [...]
