FTSE falls as investors fearful of insurance companies
by Kay Murchie
Story link: FTSE falls as investors fearful of insurance companies
The stock market has been volatile of late due to fears of a global recession, however, today, the FTSE 100 has fallen today with well-known insurers suffering heavy falls.
The latest stock market fall slump has renewed fears about the solvency ratios of the big insurance companies, as they may be forced to sell stock into […]
Prudential cuts final bonuses
by Gill Montia
Story link: Prudential cuts final bonuses
Prudential has announced that it is reducing final bonus rates on its with-profits policies by between 5% and 10%
The insurer says it is responding to the downturn in world markets and the continued poor investment environment.
However, Pru’s with-profits funds have been holding up relatively well during the credit crisis and some policyholders will see a […]
Prudential considers AIG assets bid
by David Masters
Story link: Prudential considers AIG assets bid
UK-based life insurance firm Prudential is looking to take over more than just the Asian operations of American International Group (AIG), according to a report in the Financial Times.
Prudential, Britain’s second largest life insurer, last week made it clear that it would be bidding for AIG’s Asian business.
Chief Executive Mark Tucker later told the Financial […]
Pru confirms interest in AIG’s Asian business
by Gill Montia
Story link: Pru confirms interest in AIG’s Asian business
Prudential has confirmed that it is considering buying the Asian business of American International Group (AIG), the beleaguered US insurance giant.
AIG is undertaking an extensive programme of disposals, following its $85 billion bail out by the Federal Reserve in mid-September, and Prudential is keen to continue its growth in Asia, which has been a key […]
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 […]
Pru and Aviva shares slide on capitalisation fears
by Gill Montia
Story link: Pru and Aviva shares slide on capitalisation fears
Indications that the Financial Services Authority (FSA) will ease the capital requirement of UK insurers, to prevent some of the problems seen in the UK banking sector, have been followed by sharp falls in the share prices of Prudential and Aviva.
Both companies may have to take significant writedowns as a result of market turbulence.
In addition […]
AIG to sell three Japanese life businesses
by Gill Montia
Story link: AIG to sell three Japanese life businesses
Troubled US insurer, American International Group (AIG), says it will be including three of its Japanese life insurance units in its programme of disposals.
The businesses for sale are Alico Japan, AIG Edison Life Insurance Co and AIG Star Life Insurance Co; Japanese analysts estimate they could be worth over $9.5 billion in total.
In mid-September, AIG […]
Pru and Avivia tipped to benefit from AIG sale
by Gill Montia
Story link: Pru and Avivia tipped to benefit from AIG sale
As American International Group (AIG) begins to sell its assets, Prudential and Aviva have both been mentioned as companies likely to be showing a strong interest in the auction.
The US Federal Reserve rescued AIG on Tuesday night, lending the group up to $85 billion to prevent a collapse that would have impacted on markets […]
Prudential completes £1bn C&W pension transfer
by Gill Montia
Story link: Prudential completes £1bn C&W pension transfer
Prudential has completed the biggest pension transfer seen by the market, in a deal that tops the £800 million annuity purchased by P&O’s pension fund, in December of 2007.
The insurer has acquired £1 billion of liability from the pension scheme of Cable & Wireless (C&W), the international telecoms group.
The purchase takes the form of […]
China’s central bank amasses stake in Prudential
by Gill Montia
Story link: China’s central bank amasses stake in Prudential
According to reports in the press, the People’s Bank of China (PBC) has been amassing a stake in Prudential, using a nominee account.
The Times and Sunday Telegraph have both reported that the central bank now holds around 1% of the UK’s second-largest insurer.
The Government of China is apparently keen to use its foreign currency reserves […]
Pru furthers Asian endeavours with Standard Chartered
by Gill Montia
Story link: Pru furthers Asian endeavours with Standard Chartered
Prudential is expanding its partnership with emerging markets bank, Standard Chartered.
The companies have been working together since 1998 in an arrangement that enables Prudential to provide savings and insurance products to Standard Chartered customers in Asia.
The new agreement includes Japan and Thailand (alongside Hong Kong, Singapore and Malaysia) and will allow Pru to better promote […]
Prudential to retain £8.7 billion inherited estate
by Gill Montia
Story link: Prudential to retain £8.7 billion inherited estate
Prudential has announced that its plans to return part of its £8.7 billion with-profits surplus to policyholders and shareholders are being shelved.
Around 4.5 million policyholders could have benefited from the reattribution of the company’s so-called inherited estate which has accrued because Prudential has held back a proportion of its investment returns during profitable years, to […]
MPs attacks FSA’s regulation of inherited estates
by Gill Montia
Story link: MPs attacks FSA’s regulation of inherited estates
A select committee of MP’s has criticised the Financial Services Authority (FSA) over its regulation of the with-profit funds of insurance companies.
In a report by a Treasury select committee the FSA is accused of not having clear principles for regulating the inherited estates of insurers.
The money, which is sometimes referred to as an “orphan fund” […]
Corporate PMI cover lacks clarity on cancer cover
by Gill Montia
Story link: Corporate PMI cover lacks clarity on cancer cover
Private medical insurance providers (PMI) have been criticised for being less than clear about the cover they provide for members of company health insurance schemes who develop cancer.
Employee benefit consultant Mercer and charity Cancerbackup, have examined the corporate medical insurance offered by 11 leading UK PMI providers for transparency and clarity in the terms they […]
Prudential launches Vietnamese personal finance business
by Gill Montia
Story link: Prudential launches Vietnamese personal finance business
Prudential has launched a consumer finance business in Vietnam.
The group, which is the second-largest insurer in the UK, is one of only a few foreign financial institutions to have secured an operating licence in the country, which boasts one of the fastest growing economies in Asia.
The company has had a presence in the country since […]
Pru’s Asian sales rise 30%
by Gill Montia
Story link: Pru’s Asian sales rise 30%
Prudential recorded a 13% rise in new business sales worldwide, in the first quarter of 2008.
However, new sales at its US business fell 7% during the three months, to £165 million.
The decline has been attributed to strong competition in the market and reluctance by US consumers to invest in certain products in the wake of […]
Pru headhunts new chairman
by Gill Montia
Story link: Pru headhunts new chairman
Prudential has appointed headhunting agency, Whitehead Mann, to find a new chairman.
The insurer has given itself plenty of time to replace Sir David Clementi, who has been chair of the group since 2002 and is due to retire in 2010.
It is understood that Sir David, who is aged 58, is keen to pursue other activities, […]
Pru chief rules out Asian flotation
by Gill Montia
Story link: Pru chief rules out Asian flotation
Prudential’s Asian business is booming, raising the possibility that the insurer could relocate its corporate headquarters to the region at some point in the future.
However, Pru’s chief executive, Mark Tucker, has made it clear that he will not be spinning off the Asian unit, although there may be a secondary listing for the group on […]
Prudential posts 25% profit rise on strong Asian growth
by Gill Montia
Story link: Prudential posts 25% profit rise on strong Asian growth
Prudential has recorded a 25% rise in full-year operating profit, to £2.5 billion (£2.1 billion) for 2007.
The insurer’s sales in Asia expanded rapidly last year, accounting for more than half of all new business.
During the year, total new business rose 22% to £1.2 billion. New business profit in Asia rose 34% to £653 million; in […]
Pru faces renewed pressure on break-up
by Gill Montia
Story link: Pru faces renewed pressure on break-up
Speculation that Prudential will be broken-up is mounting, ahead of publication of the group’s full-year results next month.
The insurer’s Asian and US businesses have both been experiencing strong growth, whereas its UK division is seen as underperforming with sales growth in the domestic market falling behind that of Legal & General and Aviva.
This is due […]
