The UK insurer is to combine its UK and European insurance business with its M&G asset management unit into a single group.
Editor’s Remarks: There is more UK financial services consolidation to come after next week’s closing of the merger between Standard Life and Aberdeen Asset Management to form a £670bn active fund manager. Prudential has announced that it will merge M&G into its UK and European insurance business in a move that will generate £145m of annual cost savings in a combined entity that manages over £330bn of assets. But the market is looking beyond the cost savings and sees this move as a possible precursor to a spin-off of its UK businesses that will allow the Prudential Group to concentrate on its faster-growing Asian and US businesses. Prudential’s first half results showed the units to be combined had produced profits of £728m out of total group profits of £2.4bn.