Prudential (2378) yesterday said it would separate its US business, Jackson, through a demerger to better focus on Asian and Africa and that it was considering raising US$2.5 billion to US$3 billion (HK$19.5 billion to HK$23.4 billion) in new equity.
The British life insurer, under pressure from activist investor Third Point, had originally planned a minority initial public offering of the US business.
Prudential chief executive Mike Wells said the demerger would "significantly accelerate Prudential's transformation into a business purely focused on profitable growth in Asia and Africa."
Shares in Jackson would be distributed to Prudential shareholders after the demerger. Following the demerger, Prudential said it would retain a 19.9 percent non-controlling interest in Jackson.
Prudential said operating results for 2020 were anticipated to be in line with market expectations, ahead of its full-year earnings announcement on March 3.
Prudential and other international life insurers are now imposing waiting periods before Covid-19 patients, including those who have recovered, can apply for coverage. Some are also limiting coverage for certain age groups. These changes come as some reinsurers demand new safeguards from life insurers they backstop, and as the industry struggles to ascertain the extent of problems caused by the coronavirus.
