|Type||Public limited company|
|Traded as||LSE: PRU
|Headquarters||London, United Kingdom|
|Key people||Paul Manduca1
(Group Chief Executive)
|Revenue||£29.910 billion (2012)2|
|Operating income||£3.188 billion (2012)2|
|Net income||£2.197 billion (2012)2|
Prudential plc (LSE: PRU, NYSE: PUK, SEHK: 2378) is a British multinational life insurance and financial services company headquartered in London, United Kingdom. It was founded in London in May 1848 as The Prudential Mutual Assurance Investment and Loan Association to provide loans to professional and working people.3
Prudential's largest division is Prudential Corporation Asia, which has over 15 million customers across 12 Asian markets and is a top-three provider of life insurance in Hong Kong, India, Indonesia, Malaysia, Singapore, the Philippines and Vietnam.45 Its Prudential UK division has around 7 million customers and is a leading provider of life insurance and pensions in the UK.4 Prudential also owns Jackson National Life Insurance Company, which is one of the largest life insurance providers in the United States, and M&G Investments, a Europe-focused asset manager with total assets under management of £201.3 billion at 31 December 2011.6
Prudential has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It had a market capitalisation of approximately £15.9 billion as of 23 December 2011, making it the 25th-largest company on the London Stock Exchange.7 Prudential has secondary listings on the Hong Kong Stock Exchange, New York Stock Exchange and Singapore Exchange.
In 1854 the Company began selling the relatively new concept of industrial branch insurance policies to the working class population for premiums as low as one penny through agents acting as door to door salesmen. The army of premium collection agents was for many years identified with the Prudential as the "Man from the Pru".3
It moved to its traditional home at Holborn Bars in 1879 and converted to a limited company in 1881.3 The building was designed by Alfred Waterhouse, and is built of terracotta manufactured by Gibbs and Canning Limited of Tamworth (c.1878) — two of the same driving forces behind the Natural History Museum in London.8
The Company was first listed on the London Stock Exchange in 1924.
In 1986, Prudential acquired the American insurer Jackson National Life. In 1997 Prudential acquired Scottish Amicable, a business originally founded in 1826 in Glasgow as the West of Scotland Life Insurance Company, for $1.75bn.9
In 1998 Prudential set up Egg, an internet bank within the UK. The subsidiary reached 550,000 customers within nine months but had difficulty achieving profitability.10 In June 2000 an initial public offering of 21% was made to allow for further growth of the internet business but in February 2006 Prudential decided to repurchase the 21% share of Egg.11 Egg was subsequently sold to Citibank in January 2007.12
In April 2008 Prudential outsourced its back office functions to Capita: about 3,000 jobs were transferred (1,000 in Stirling, 750 in Reading and 1,250 in Mumbai).16 This significant outsourcing deal, worth an estimated £722m over a 15 year contract, built on Prudential's existing relationship with Capita who took over its Belfast operation in 2006 along with approximately 450 employees in a smaller operational restructure.17
On 1 March 2010, Prudential announced that it was in "advanced talks" to purchase the pan-Asian life insurance company of AIG, American International Assurance (AIA) for approximately $35.5 billion.18 The deal later collapsed and AIA ended up raising money in an IPO.19
The Company has four business units:20
- Prudential UK: the business offers pensions, annuities, savings and investments (bonds, ISAs). They are particularly well known for the sale of with-profit bonds and pensions, corporate pension schemes, bulk annuities and individual annuities. The company left the general insurance (household, car) market in 2002, licensing Churchill Insurance (now part of the Royal Bank of Scotland group) to use the Prudential name.
- M&G: the business offers investment management services including retail fund management, institutional fixed income, pooled life, pension funds, property and private finance. Part of M&G, Prudential Property Investment Managers specialises in the management of Prudential's property assets.
- Prudential Corporation Asia: based in Hong Kong,21 the business is the largest UK life assurer in Asia. It has had a presence in the continent since 1923 when an overseas agency for life assurance was created in India. Although this was subsequently nationalised, Prudential relaunched in India in 2000 as ICICI Prudential, a 26% joint venture with ICICI Bank. As CITIC Prudential Life, a 50–50 joint venture, they were the first UK company to re-establish life business in China in 2000. There are also businesses in Hong Kong, Taiwan, Japan, South Korea, Singapore, Malaysia, Philippines, Thailand, Vietnam and Indonesia. On 15 November 2011, Prudential Corporation Asia announced its intention to change the name of its asset management business to Eastspring Investments.
- Jackson National Life Insurance Company: based in Michigan, United States,22 the business was purchased in 1986. It was named after Andrew Jackson, the seventh President of the United States of America and started business in 1961.
There are currently 16 people on the board of directors. Key individuals are:
|Chairman of the Board of Directors||Paul Manduca|
|Group Chief Executive||Tidjane Thiam|
|Chief Financial Officer||Nic Nicandrou|
|President & Chief Executive Officer for Jackson||Mike Wells|
|Chief Executive of M&G||Michael McLintock|
|Chief Executive of Prudential Corporation Asia||Barry Stowe|
|Chief Executive of UK & European Insurance Operations||Rob Devey|
|Group Chief Risk Officer||John Foley|
- "Prudential appoints Paul Manduca as its new chairman". BBC. Retrieved 4 July 2012.
- "Preliminary Results 2012". Prudential Public Limited Company. Retrieved 16 March 2013.
- "Timeline 1826–1901". Prudential plc. Retrieved 30 August 2010.
- "Fact File 2011". Prudential plc. Retrieved 13 March 2012.
- "About us". Prudential Corporation Asia. Retrieved 31 December 2011.
- "About Prudential: M&G". Prudential plc. Retrieved 13 March 2012.
- "FTSE All-Share Index Ranking". stockchallenge.co.uk. Retrieved 26 December 2011.
- Research page including details of many buildings that used Gibbs and Canning terracotta accessed 25 March 2012
- Pru of Britain in Deal to buy Scottish Life Insurancer. The New York Times, 26 March 1997.
- Egg cracks internet for Pru BBC News, 1999
- Prudential to swallow the Egg whole. BBC News, 2005.
- Pru sells EGg to Citigroup. BBC News, 2007.
- Pru pounces on investment rival BBC News, 1999
- Prudential goes to New York BBC News, 2000
- Insurance boon for health conscious. BBC News, 2004.
- Prudential jobs deal with Capita BBC News, 2007
- Prudential outsources 450 jobs in Belfast to Capita Group. The Independent, 17 August 2006.
- "Prudential in talks to buy AIA". Uk.reuters.com. 27 February 2010. Retrieved 18 April 2011.
- "Prudential abandons bid for AIA". BBC News. 2 June 2010. Retrieved 25 March 2012.
- Prudential: What we do
- "Prudential plc – Contact Prudential Corporation Asia". Prudential.co.uk. Retrieved 18 April 2011.
- "Prudential plc – Contact Jackson National Life Insurance Company". Prudential.co.uk. Retrieved 18 April 2011.
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