The Prudential Assurance Company Limited ("PAC"), the UK subsidiary of Prudential Plc, has reached an agreement to sell its 25% equity stake in the PruHealth and PruProtect joint venture to Discovery Group Europe Limited ("Discovery") for £155 million in cash.
PAC's minority stake in the joint venture has the characteristics of a financial rather than strategic investment in the UK protection market, with the majority of operating functions provided by Discovery. This transaction will enable Prudential UK to realise its investment at attractive terms while providing full strategic optionality to re-enter this market in due course. Prudential UK will work closely with Discovery to ensure a smooth transition and will continue to support the business for a transitional period.
Commenting on the sale, Jackie Hunt, Chief Executive of Prudential UK, Europe and Africa, said:
“Prudential is proud to have built a successful UK health and protection business in partnership with Discovery over the past ten years. This success has enabled us to divest our stake in PruHealth and PruProtect on attractive terms for Prudential's shareholders.”
“The transaction will also give us the strategic and commercial flexibility to consider operating freely in the UK protection market in due course. This would be fully in line with our stated strategy of developing the UK business and leveraging the Group's global expertise in risk-focused products.”
About Prudential plc
Prudential plc is incorporated in England and Wales, and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for more than 166 years and has £457 billion in assets under management (as at 30 June 2014). 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.