John Foley, Chief Executive of M&G Prudential, also said, "The demerger will allow M&G Prudential to play a broader leadership role in the fast-changing savings and investments market within the United Kingdom and Europe". "Both are expected to meet the criteria for inclusion in the FTSE 100 index".
UK-based Rothesay Life announced today that it has entered into an agreement to purchase £12bn of annuities from Prudential plc.
Following the demerger, Prudential plc will remain headquartered in the United Kingdom and retain its premium listing on the London Stock Exchange, its primary listing in Hong Kong, and other listings in Singapore and NY.
"We're not looking to get rid of all of our capital-intensive products, we're looking to grow the piece that's capital-light", Wells told Reuters, adding that the M&G Prudential business "is better off standalone, competing domestically for people, for capital".
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Snow is ongoing in Connecticut, Massachusetts, Vermont, Rhode Island, New Hampshire and ME , as well as on Long Island, New York. By Wednesday morning, lingering light snow will continue for most of northern NY and into New England.
A spokesman for Prudential told Citywire Selector: 'Eastspring has been a very successful asset manager and will continue to be so for Prudential PLC following the demerger.
'There is also the value release potential from the exit of £34bn of United Kingdom annuity assets to consider, with redeployment possibly leading to an additional 5% value release over time'.
M&G Prudential will be led by its current chief executive John Foley and will continue its drive to become a more capital-efficient and customer-focused business, targeting growing demand for comprehensive financial solutions.
Back in August, the life insurer merged its asset management arm with its United Kingdom savings business, forming M&G Prudential with some £332bn in assets under management.
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M&G Prudential will be a savings and investment provider in the United Kingdom and Europe, while Prudential plc will be an global insurance group targeting growth opportunities in Asia, the U.S. and Africa.
Prudential opted to merge life insurance business Prudential with its asset management arm M&G in August past year in an attempt to make better use of the scale and capabilities available, the company said. It is also subject to regulatory and shareholder approval.
Addy Loudiadis, chief executive of Rothesay Life, said: "I am delighted that Prudential, one of the UK's most respected insurance companies, has chosen Rothesay Life to secure its policyholders' pensions over the long term in a landmark transaction for us and for the industry".
The reinsurance arrangement with Rothesay Life will help Prudential to separate out legacy annuity business, so de-risking and preparing its two new separated operating entities for further growth.
Snow warning for the Isle of Wight
The Met Office has issued yellow weather warnings between Friday, March 16, and Sunday, March 18, in preparation for snow and ice. Ms Maxey said temperatures in some rural areas of the United Kingdom may struggle to climb above zero.