Prudential says M&G spin-off going to plan as profits soarComments Off on Prudential says M&G spin-off going to plan as profits soar
Insurance giant Prudential on Wednesday said the spin-off of its UK business M&G Prudential was on track as it reported a large rise in profits over the past six month.
“Everything is on schedule or ahead of schedule,” chief Mike Wells said, adding the company was working on the integration of human resources, IT and sorting out M&G Pru’s debt structure.
The FTSE 100 giant, which is planning to split the UK arm from the rest of the Asia and America, said operating profits rose 9% to a record £2.4 billion.
Wells said the demerger of M&G Prudential from the group demonstrated his company’s “commitment to creating shareholder value.”
“We have mobilised our internal teams for delivery, positively engaged with external stakeholders and we are making good progress,” Wells said.
Pru, which sponsors the RideLondon event (pictured) plans to list M&G Prudential on the London stock market although speculation has mounted the unit could be taken over with Lloyds Banking Group mentioned as a possible suitor. M&G chief Anne Richards (pictured) is leaving Pru to take up a role at Fidelity.
Strong growth in Asia — the world’s fastest growing market — was behind the rise with new business profits rising 11% to £1.1 billion due to a growing workforce and middle class in countries like China.
M&G Investment, the unit Richards runs, saw net inflows of £3.5 billion.
The boost came from inflows into the company’s giant Optimal Income Fund and multi-asset funds plus its special line of private credit funds The inflows are slower than the same period last year, when the Chelsea Flower Show sponsor lured in £7.5 billion.
Total assets under management also dropped to £342 billion from £351 billion after a book of business was sold to Rothesay Life.
Pru also appointed former London Stock Exchange finance chief Fields Wicker-Miurin as a non-executive director to the board.