For immediate release Friday 19 June 2009
PRUDENTIAL PLC COMPLETES TRANSFER OF LEGACY AGENCY BOOK AND AGENCY
FORCE IN TAIWAN TO CHINA LIFE INSURANCE OF TAIWAN
Prudential plc ("Prudential") announces that it has completed the
transfer of the assets and liabilities of its agency distribution
business and its agency force in Taiwan to China Life Insurance
Company, Ltd of Taiwan ("China Life").
As a result of the transaction, which was announced on 20
February 2009 and received regulatory approval on 16 June, there will
be a net increase in Prudential's Insurance Groups Directive (IGD)
capital surplus of approximately GBP800 million. The Group's IGD
capital surplus as announced on 14 May 2009 was estimated at GBP2.0
billion. With the completion of this agreement, the surplus would
increase to GBP2.8 billion.
Prudential retains an important presence in the Taiwanese market
through its fast growing wholly owned subsidiary PCA Life Assurance
Company Ltd, which specialises in bank distribution through two
strategic partnerships with Standard Chartered Bank and E.Sun and also
through its successful asset management operation PCA Securities
Investment Trust Company Ltd. In addition, Prudential, as announced on
February 20, has invested GBP45 million to purchase a 9.99 per cent
stake in China Life. Prudential believes that these interests provide
an excellent platform to create added value for the Group from Taiwan.
Tidjane Thiam, Group Chief Financial Officer says: "As a Group, we are
focused on capital preservation and on profitable
and capital efficient growth in all our markets. With the completion of
this transaction in Taiwan, our IGD surplus increases to GBP2.8 billion,
a strong and robust position. Asia continues to present the Group with
excellent profitable growth opportunities in the long term
and Taiwan is a key market. We remain committed to expanding our life
insurance business in Taiwan through bank distribution partnerships and
the development of our asset management business in that market."
ENDS
Enquiries:
Media Investors/
Analysts
Edward Brewster James Matthews
+44 (0)20 7548 3719 +44 (0)20 7548 3561
Notes to Editors:
PCA Life Assurance Company
The liabilities being transferred under this agreement represent 94 per
cent of PCA Life Assurance Company's in-force liabilities in Taiwan and
include the legacy interest rate guaranteed products.
About Prudential plc
Prudential plc is a company incorporated and with its principal place
of business in England, and its affiliated companies constitute one of
the world's leading financial services groups. It provides insurance
and financial services directly and through its subsidiaries and
affiliates throughout the world. It has been in existence for over 160
years and has GBP249 billion in assets under management (as at 31
December 2008). Prudential plc is not affiliated in any manner with
Prudential Financial, Inc, a company whose principal place of business
is in the United States of America.
Forward-Looking Statements
This statement may contain certain "forward-looking statements" with
respect to certain of Prudential's plans and its current goals and
expectations relating to its future financial condition, performance,
results, strategy and objectives. Statements containing the
words"believes", "intends", "expects", "plans", "seeks" and "anticipates",
and words of similar meaning, are forward-looking. By their nature, all
forward-looking statements involve risk and uncertainty because they
relate to future events and circumstances which are beyond Prudential's
control including among other things, UK domestic and global economic
and business conditions, market related risks such as fluctuations in
interest rates and exchange rates, and the performance of financial
markets generally; the policies and actions of regulatory authorities,
the impact of competition, inflation, and deflation; experience in
particular with regard to mortality and morbidity trends, lapse rates
and policy renewal rates; the timing, impact and other uncertainties of
future acquisitions or combinations within relevant industries; and the
impact of changes in capital, solvency or accounting standards, and tax
and other legislation and regulations in the jurisdictions in which
Prudential and its affiliates operate. This may for example result in
changes to assumptions used for determining results of operations or
re-estimations of reserves for future policy benefits. As a result,
Prudential's actual future financial condition, performance and results
may differ materially from the plans, goals, and expectations set forth
in Prudential's forward-looking statements. Prudential undertakes no
obligation to update the forward-looking statements contained in this
statement or any other forward-looking statements it may make.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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