Prudential plc

This article is about the British insurance company. For the American company, see Prudential Financial Inc.

Prudential plc, Corporate

Website, Reports

Corporate Political Engagement Rating:
Transparency International    B  

Prudential is an international life insurance and financial services group, headquartered in London. Prudential plc is the parent holding company which, through its subsidiaries, has operations in the UK, Europe, USA, Asia, and Africa. Activity is through two business segments: Jackson National Life Insurance Company provides retirement savings and income strategies aimed at the large number of people approaching retirement in the USA. Jackson National Life is the the group’s principal subsidiary.:307 Website Prudential Corporation Asia Ltd, headquartered in Hong Kong, offers insurance and asset management operations across 14 markets. Eastspring Investments (Singapore) Ltd is the Prudential's Asian asset management business, managing investments across a broad range of asset classes for internal, retail and institutional clients. Website

Company

Shareholders

Total float: 99.5%

• 3.96% Baillie Gifford & Company
• 2.99% Norges Bank Investment Management
• 2.84% Vanguard Group Inc
• 2.67% BlackRock Investment Management (UK) Ltd
• 2.54% Legal & General Investment Management Ltd
• 2.35% Capital Research & Management Company (World)
• 2.33% BlackRock Fund Advisors
• 2.08% GIC Private Ltd (Investment Management)
• 1.79% Causeway Capital Management LLC^[1]
• 1.47% Standard Life Investments Ltd

Source: , Mar.2020

Structure

• Prudential plc,
  • Prudential Hong Kong Ltd,
  • Prudential General Insurance Hong Kong Ltd,
  • Prudential Corporation Asia Ltd, reg. Hong Kong,
    • Prudential Holdings Ltd,
      • Prudential Corporation Holdings Ltd,
        • ICICI Prudential Life Insurance Company Ltd, reg. India,

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• M&G plc < M&G Prudential plc < M&G Prudential Ltd,
  • M&G Group Ltd, holdco
  • M&G Prudential (Holdings) Ltd, holdco
  • Prudential Financial Services Ltd, holdco
  • Prudential Property Services Ltd, service company
  • Prudential Assurance Company Ltd, long term insurance
    • Prudential International Assurance plc, reg. Ireland, offshore bond maket + UK risk insurance
      • Prudential International Assurance UK Branch
      • Prudential International Assurance plc, reg. Poland

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• ?Prudential Capital Holdings Company Ltd
  • ?Prudential Capital plc
  • ?Prudential Capital (Singapore) Pte. Ltd

Timelines

ToDo: History, About, Reports 2009-2020

Prudential plc

Mar.2020	Jackson IPO: Prudential announced the preparation for a minority Initial Public Offering of its USA business Jackson National Life Insurance Company.
Oct.2019	M&G plc: M&G Prudential plc was demerged, and listed on the London Stock Exchange as a stand-alone business. The carve-out enabled Prudential plc to concentrate on the fast-growing economies in Asia, Africa and the USA. A large annuity book was sold off.
Dec.2018	Brexit: Prudential Assurance Company transferred its long-term non-UK European business to Prudential International Assurance plc, an Ireland-registered offshore business.
ul.2018	Outsourcing: M&G Prudential cut short its contract with Capita plc by 5 years, transferring the administration of the UK life and pensions business to Diligenta, a subsidiary of India's Tata Consultancy Services on a new 10-year contract. TCS's sub-brand Diligenta will assume responsibility for the administration of 4 million pensions. Capita continued administering the international operations.
Nov.2017	CITIC Prudential Life Insurance Company Ltd: Prudential announced the name change of its joint venture with Chinese investment company CITIC Ltd.
Aug.2017	M&G Prudential: Prudential announced the combination of its asset manager M&G, with Prudential UK & Europe, the savings and retirement business.
2015-2019	Africa: Prudential entered six other African countries: Uganda (2015); Zambia (2016); Nigeria (2017); Cameroon, Cote d’Ivoire and Togo (2019).
Nov.2014	PruHealth: Prudential's remaining 25% stake in holdco Prudential Health Holdings Ltd was sold to its joint venture partner Discovery Ltd. pruhealth.co.uk Discovery re-branded PruHealth as VitalityHealth, and its sister company PruProtect rebranded to VitalityLife, both under the Vitality umbrella brand. VitalityHealth, vitality.co.uk
Sept.2014	Shield Assurance, a Kenyan life insurer, was acquired, and rebranded as Prudential Kenya, further expanding the company's presence in Africa.
Apr.2014	Prudential launched two corporate responsibility initiatives to support education in Ghana: the Prudential Scholarship Programme for more than 500 senior high school students, in partnership with the NGO Plan Ghana; and a scheme to support actuarial science graduates.
Dec.2013	Express Life Company in Ghana was acquired, and subsequently rebranded as Prudential Ghana.
Oct.2013	M&G Real Estate: M&G Investments changed PruPIM's name.
Aug.2010	PruHealth: Discovery purchased Standard Life Healthcare, and placed it into the joint venture. At the same time, Discovery Ltd increased its shareholding to 75%. pruprotect.co.uk
2010	Prudential plc was listed on the Hong Kong and Singapore stock exchanges.
Apr.2009	Automation: Prudential adopted Stepstone Solutions' data capture and collation services. Stepstone is a European provider of software-based HR performance management solutions and technologies.
Apr.2008	Outsourcing: Prudential outsourced its back office functions in a a 15-year contract to Capita plc, with ~3,000 jobs being transferred.
Jan.2007	Egg plc's subsidiary, Egg Banking plc, was sold to American investment and financial services corporation Citigroup Inc, subject to regulatory approval.
Nov.2007	Outsourcing: Prudential UK entered into a partnership agreement with Capita plc to outsource a large proportion of its in-force and new business policy administration. The 15-year agreement stipulated that Capita will provide customer servicing, policy administration, new business processing, claims activity and related IT support to Prudential UK. Capita acquired business and assets from Prudential, including part of the business of Mumbai-based Prudential Process Management Services, Prudential's offshore operation. The move was made in a cost-cutting attempt to shore up Prudential's ailing UK business.
Sept.2007	PruProtect, another joint venture between Discovery Ltd and Prudential, was launched. PruProtect offered Serious Illness, Income Protection and Life cover. pruprotect.co.uk Website
2006	Outsourcing: Capita plc took over Prudential's Belfast operation, along with ~450 employees in an operational restructure.
2006	PruPIM: Prudential Property Investment Managers was formally rebranded.
Dec.2006	Save & Prosper's portfolio of in-payment pension annuities was acquired from JPMorgan Asset Management Marketing Ltd (?); the book covered ~16,900 policies.
Jan.2006	Royal London's portfolio of in-payment pension annuities, primarily under the Royal London brand but also including some under the Refuge Assurance brand, was acquired.
2005	Joint Ventures: CITIC Prudential Fund Management Company Ltd (33%) in China, and Prudential ICICI Asset Management Company Ltd (49%) in India were new joint ventures. Prudential ICICI Asset Management Company Ltd was previously a subsidiary with an ownership interest of 55%, but in 2005 the group sold a 6% holding, resulting in a new interest of 49%.:157
Oct.2004	PruHealth, a joint venture with Discovery Ltd of South Africa selling private medical insurance in the UK, was launched.pruhealth.co.uk
Jan.2003	Divestments: the German life business was sold to Canada Life Financial Corporation.:9
Nov.2002	Outsourcing: M&G and International Financial Data Services announced the signing of an outsourcing agreement whereby IFDS provides M&G with retail administration services for its UK-based range of funds.
Sept.2002	Outsourcing: plans were announced to establish an offshore customer contact service centre in Mumbai, India to achieve additional cost savings. The centre opened in May.2003,[AR-2002] with 4,300 UK employees being made redundant.:163
Jan.2002	Divestments: the UK Home and Motor General business operations were sold to Winterthur Insurance. A strategic alliance was formed with Churchill Insurance Company Ltd, Winterthur's subsidiary, to offer Prudential-branded general insurance products for which Prudential received commission.
Feb.2001	Orico Life Insurance Company Ltd, a Japanese life insurance company, and YoungPoong Life in Korea, were acquired. Both operations were re-branded as "PCA Life" (Prudential Corporation Asia Life).
2001	M&G Investments: Prudential Portfolio Managers was integrated into Prudential's UK and European fund management arm.
Dec.2000	Asia: joint ventures were formed in China with CITIC Group for life insurance, and in India with ICICI Bank Ltd for both life insurance and mutual fund management.
Oct.2000	Core Pacific Securities Investment Trust Enterprise, a mutual fund operation in Taiwan, was partly acquired (89%), and renamed as "Prudential Taiwan Site".
Sept.2000	Highland Bancorp Inc, a publicly-listed California savings company, was acquired.
Jun.2000	Egg plc: an initial public offering of ~21% was made to enable further growth. In Jul.2004, Egg withdrew from the French market. In Feb.2006, Prudential repurchased the 21% shareholding, and delisted Egg.
Jun.2000	Prudential plc was listed on the New York Stock Exchange, to help focus on the USA market.
Oct.1999	Prudential plc: Prudential Corporation plc changed its name.
?date?	CoFunds, a fund supermarket for intermediaries, was founded as a joint venture between M&G plcM&G, Threadneedle Asset Management, Jupiter Asset Management Ltd and Gartmore.:12 (CoFunds is currently owned by Aegon, Webpage).

Prudential Corporation plc

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Apr.1999	M&G Group plc, a publicly-listed UK fund management company, was acquired.
1999	Jobs: despite profits rising by 20%, the goal of removing ~5,000 jobs was maintained.:14
Oct.1998	Egg plc, the UK's first internet bank, was launched to offer a range of deposit, mortgage and loan products by means of the Internet and telephone. (Prudential Banking plc was renamed as Egg Banking plc. )
Sept.1998	Prudential Corporation Australia Ltd and Prudential Assurance Company New Zealand Ltd were sold to the Colonial Mutual Life Assurance Society Ltd.
Jun.1998	Prudential Assurance Malaysia Berhad: regulatory approval was received for the purchase of a controlling interest in the group's Malaysian operation.:57
Nov.1997	Prudential Vita was sold to Royal & Sun Alliance Insurance Group plc.
Sept.1997	Scottish Amicable Life Assurance Society, founded in 1826 as the "West of Scotland Life Insurance Company" in Glasgow, was acquired by the Prudential Assurance Company Ltd, bringing ~2m customers. The investment functions were promptly hived up into Prudential Portfolio Managers.:66 In Nov.2001, the Scottish Amicable brand was discontinued.
Mar.1997	NZI Life: New Zealand Insurance Life Ltd in New Zealand was acquired from General Accident and hived up.:66 NZI Life was a tasty morsel due to its having taken over the failed Capital Life Insurance Company in 1990, coupled with the lax New Zealand regulation.
1997	PPM Property is one of the largest institutional property owners in the UK, with 1,000+ buildings. PPM added to its portfolio with a number of key acquisitions, including a portfolio of central London offices at Millbank; the Grafton Shopping Centre in Cambridge; and the agreement to purchase P&O's interest in the Manchester Arndale shopping centre. Completed the rebuilding of 30 Berkeley Square in London's Mayfair (let to BT); commenced development of GreenPark, Reading (~200 acres with planning permission to accommodate a working community of 15,000+ people); The Mall at Cribbs Causeway, a large shopping complex six miles north of Bristol city centre which Prudential jointly developed, opened in Mar.1998.:26-28
Dec.1996	Mercantile & General Reinsurance Company plc was sold to Swiss Reinsurance Company Ltd, following Prudential's decision to concentrate its activities on retail financial services and fund management.
Aug.1996	Prudential Leven, the Dutch operations, were sold to Achmea NV, a Dutch financial services company.
Sept.1996	Prudential Banking plc was set up to broaden Prudential's product range within the UK, with a focus on mortgage products.:14
1994	Divestments: sold the business in Ireland; and sold the group life business in Canada. Sold the remainder of the Canadian operations.
1994	Prudential Corporation Asia Ltd was formed, with the objective of developing the established markets in Malaysia, Singapore and Hong Kong, and pursuing value-creation opportunities in the region's many high-potential markets.
Jul.1990	Prudential Property Services: Following very heavy losses in 1989, the decision was made to close 175 branches, followed by an announcement in Nov. to sell the remaining branches.:5
1990	PPM America, based in Chicago, was launched to manage Jackson's $10bn portfolio.:14 In 1991, PPM Australia was set up to manage Prudential's Australian funds. In 1993, PPM Canada was established in Toronto.
Mar.1989	Investors Life Insurance Company of Australia Ltd was acquired.:38
Feb.1989	Aetna Life & Casualty Ltd's Australian and New Zealand life assurance interests were acquired.:38
??.1989	In-Life, an Australian firm, was purchased for its ownership of a computer software company which provided financial planning services to agents and customers.:12
1988	Prudential Vita, a 50/50 joint venture with Benetton, was entered into to conduct life assurance in Italy. In 1989, Benetton sold out to L'Abeille, part of French insurer Groupe Victoire. At the same time, L'Abeille purchased Benetton's 50% share in Prudential's general insurance operation, with an agreement to subsequently purchase a further 10% and control.:18 In 1991, Prudential took full control of Prudential Vita, whilst relinquishing its interest in the general insurance business.:18 In Nov.1997, the business was sold to Royal & Sun Alliance Insurance Group plc.:9
Sept.1987	Prudential Holborn Life was launched to serve high net worth individuals. Prudential Unit Trust Managers, the Vanbrugh group, and Prudential Personal Equity Plan managers were all united under Prudential Holborn.:24 CH
??.1987	Network Finance, an Australian finance and leasing company, was acquired.:22
Jan.1987	Prudential Assurance Company of South Africa Ltd: Pru sold its majority holding to Liberty Life Association of Africa Ltd, a major local company, in exchange for a minority holding in Liberty Life. In 1983, 33% of the shares had been listed on the Johannesburg Stock Exchange. Separately, the New Zealand businesses were sold to General Accident, with the Pru retaining a 20% minority holding.AR-1986
Nov.1986	Jackson National Life Insurance Company, an American insurance company, was acquired.ref Founded in 1961, Jackson was a successful family-managed life company operating in 45 states.ref
Sept.1986	A new corporate identity was launched, to draw together the diverse strands which made up Prudential Corporation, and to provide a common banner with a common purpose.
1986	Prudential Assurance Company Zimbabwe was formed through the merger of the Zimbabwean life branch with Pearl Assurance, with Prudential owning a 75% stake.:22
1986	Prudential Property Services,CH an estate agency network, was established. By year end, 337 independent estate agencies had been acquired in each of 12 regions. PPS doubled its size in 1987, becoming the UK's largest estate agency chain.
1985	Ekins Dilley & Handley, a long-established Huntingdon-based firm of estate agents, was acquired to form the basis of a national chain of estate agencies operating under the banner of "Prudential Property Services".:13
1985	Insurance Corporation of Ireland (Life) Ltd, a leader in the Irish unit-linked market, was acquired. In Sept, it was rebranded and relaunched as "Prudential Life of Ireland".
1984	PruVenture: all PPM's venture and development capital activities were brought together in a new division whose prime function was direct investment in unquoted companies.
1982	Prudential Portfolio Managers was established to act as investment manager for the Prudential group's internal funds, as well as to non-group customers, and also to compete for external monies.
1982	PPM Property: the Prudential Estates department was renamed.
Jan.1981	Prudential Cornhill Insurance Company of Australia Ltd was sold to Phoenix Prudential Australia Ltd, in return for a minority shareholding in that company.::28
Apr.1979	A new life branch of Prudential Assurance commenced operations in Holland.[AR-1978]
Dec.1978	Prudential Corporation plc was established, and listed on the London Stock Exchange.

ToDo † crappy vanbrugh + prudential pensions pics on page 10 of AR-1982 and on pages 11+12 of AR-1983

Prudential Assurance Company Ltd

Dec.1978	Prudential Corporation Ltd became the holding company for the Prudential group of companies. Operating subsidiaries were: Prudential Assurance, Mercantile & General Reinsurance, Vanbrugh and l'Escaut.
1978	Constellation Life, a Canadian accident and health insurance company, was acquired by Prudential Assurance.
Apr.1977	Standard Trust Ltd, an authorised investment trust, was wholly acquired. Prudential already owned a substantial share-holding.
1975	Greville Insurance was established as a joint venture with the Midland Group Ltd to provide a medium for issuing life assurance policies linked to unit trusts managed by the Midland Group; it began writing business in Feb.1976.
early.1974	Vavasseur Life Assurance Ltd was acquired as a vehicle to sell unit-linked business through insurance brokers;:6 it was subsequently renamed as Vanbrugh Life Assurance Ltd. In Sept.1987, Vanbrugh was hived up into "Prudential Holborn Life".
1971	Compagnie d'Assurance de l'Escaut SA, a Belgian composite insurance company, was acquired to enable expansion in Belgium. Prudential had been associated with l'Escaut for ~50 years.:5
1971	It was announced that all life assurance businesses in Pakistan were to be nationalised.:6
1970	Zambia: legislation prevented the writing of new business after the end of the year; the existing business was nationalised by the end of 1971. Uganda: legislation prevented the issuing of new policies after June, except through a locally-incorporated subsidiary in which the Ugandan Govt held a 60% share; the business was accordingly disposed of. Sudan: new business ceased in 1956; the business was nationalised during 1971.
1968	Mercantile & General Reinsurance Company Ltd, the UK's largest international reinsurer, was acquired. Mercantile & General was already a member of the Prudential Assurance Company Ltd at the time of the acquisition.:29
Nov.1956	Egypt: the Egyptian business was sequestrated by the Egyptian Govt, and subsequently sold to the AI Goumhouria Insurance Company. Prudential was subsequently compensated.
1920s	Prudential Estates: Prudential made major real estate investments.
1923	India: the first overseas life branch was opened in Calcutta, India.
1922	Prudential Insurance Company of Great Britain was launched in New York for the purpose of transacting Fire business in the USA.
Mar.1904	Coat of Arms was officially granted in England on Mar.18.1904, and in Scotland on Jun.25.1965.
1881	Prudential Assurance Company Ltd: converted to a limited liability company, following the Limited Liability Act 1880.

Origins

1867	Prudential Assurance Company: the company changed its name.
1866	Prudential Assurance Company: the company's name was shortened.
1865	Consolidated Life Assurance Company, a further acquisition, helped to establish Prudential as one of the leading life assurance companies. Post-acquisition, the company's name was expanded to the unwieldy British Prudential and Consolidated Assurance Company.
1860	British Prudential Assurance Company: Prudential's main rival, the British Industry Life Assurance Company, was acquired and renamed. A large number of established customers and an experienced team of agents in the north of England came along with the purchase.
1854	Industrial Department: a new product was launched: Industrial Insurance to the working (industrious) classes, for premiums of a penny and upwards. A new system for selling to this market based on door-to-door salesmen supported by actuarial tables and efficient administration was devised.
Sept.1848	Prudential Mutual Assurance, Investment, and Loan Association: the company changed its name and focus, providing loans to professional and working people.
May.1848	Prudential Mutual Assurance Investment and Loan Association was founded in Hatton Garden, London to provide professional people with loans secured by life assurance.

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ToDo:

• Save & Prosper: link, link, link, CH, link, link, link, link, link, link, link, link, link, link, link, link, link, link, link, link, WP search "Countrywide Assured", WP search Chesnara, DDG Countrywide, Save and Prosper, DDG Apollo Management, countrywide
• Squeezing customers to gain more profits: link countrywideassured.co.uk, , UP = Chesnara plc, CH, chesnara.co.uk

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FixMe: Were these Jackson or Prudential acquisitions?

• Oct.2004: acquired 75% of the voting equity interests of Muller & Weygandt GmbH, a German healthcare company.^:183
• Mar.2004: acquired 100% of the voting equity interests of Edotech, a UK business services company.^:183
• Jun.2004: acquired 73% of the voting equity interests of Sterigenics International Inc, a US-based healthcare company.^:183

Articles

• Mar.16.2018: Prudential’s split into two ‘will result in full-scale break-up’. The Prudential has detailed plans to split its fund management arm and its insurance operations in the UK and Europe from its American, Asian and African division. M&G Prudential will house fund management and the UK and European insurance assets. Prudential plc will contain the high-growth Asian arm. Miles Costello, Harry Wilson, The Times.