Prudential’s management are preparing to split its US arm Jackson Life.
It is looking to either list it in the US or form a possible private equity partnership that will allow it to use its own capital to back further expansion in Asia, according to a report in The Times based on a source.
Third Point, a New York hedge fund led by Dan Loeb, revealed last month that it had built a near 5% stake in Prudential as it demanded management to leave its London headquarters and separate Jackson from Prudential’s high-growth Asian operations. Loeb believes that splitting the units could double the value of the business by 2023.
It is a strategy that few outside observers disagree with. When the demerger of the UK business last year also as Prudential put it at the time, “distinct businesses with divergent market opportunities” should be set free to focus on their own strategic priorities under separate management teams.
Group chief executive of Prudential, Mike Wells, said last year at its demerger with M&G: “Prudential is now an Asia-led portfolio of businesses, focused on structural growth markets.”
InsuranceAsia News reported last month’s announcement that Prudential is seeking to take 100% control of its joint venture with Citic in China. The management is in discussion with the Chinese authorities first, before they will submit a formal application.
 
 

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