11 Mar 2020
Preparations commenced for a minority IPO of Jackson
Prudential plc (“Prudential”) today announces that it is preparing for a minority Initial Public Offering (“IPO”) of its US business.
Jackson, headquartered in Lansing, Michigan, is a top-two annuity provider in the US and has best-in-class products, distribution and operations.
Mike Wells, Group Chief Executive of Prudential, said: “In order to diversify at pace, Jackson will need access to additional investment, which we believe would best be provided by third parties. Today we are announcing that preparations have commenced for a minority IPO of Jackson and we have already taken a number of management actions to support this path. We will now commence detailed engagement with our key stakeholders, with a view to ensuring that Jackson will have the capital strength as a separately listed business to support its continued success as a broad provider of retirement solutions for America’s ageing population.”
Michael Falcon, Chairman and Chief Executive of Jackson, said: “The US is the world’s largest retirement market with trillions of dollars expected to move from savings into retirement income products over the next decade. Jackson’s ambition is to play the fullest role possible in this through a strategy of diversifying its product range and distribution network. Over time, this is expected to lead to a more balanced mix of policyholder liabilities and enhance statutory capital and cash generation.”
Paul Manduca, Chairman of Prudential, said: “Over the past nine months, Prudential has undertaken a significant amount of work with our advisors to assess our options for introducing third party finance into Jackson. The Board has determined that the preferred route to achieve this is to seek a listing of Jackson in the US in due course, subject to market conditions.”
Prudential will provide an update at its half-year results on 11 August 2020.
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Notes to Editors:
Jackson’s 2019 performance highlights
- Adjusted operating profit increased by 20 per cent to $3,070 million.
- Continued growth of advisory sales, with new business sales up 30 per cent as distribution models continue to evolve.
- Expanded advisory distribution footprint with Morgan Stanley, DPL Financial Partners, TD Ameritrade and RetireOne.
- Awarded ‘Contact Center World Class CX Certification’ and ‘Highest Customer Service for the Financial Industry’ awards by The Service Quality Measurement Group, Inc.
- Actively engaged with FinTech partners including Envestnet, MoneyGuidePro and eMoney.
Jackson is a leading provider of retirement products for industry professionals and their clients. The company and its affiliates offer variable, fixed and fixed index annuities designed for tax-efficient growth and distribution of retirement income for retail customers, as well as products for institutional investors. Jackson is a proud founding member and co-chair of the Alliance for Lifetime Income, a nonprofit 501(c)(6) organisation formed and supported by 24 of the nation’s financial services organisations to create awareness and educate Americans about the importance of protected lifetime income. With $297.6 billion in IFRS assets*, the company prides itself on sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, Jackson provides industry insights and financial representative training on retirement planning and alternative investment strategies. The company is also dedicated to corporate philanthropy and supports non-profit organisations focused on strengthening families and creating economic opportunities in the communities where its employees live and work. For more information, visit www.jackson.com.
*Prudential plc’s US insurance business has IFRS total assets of $299.0 billion, of which $297.6 billion relate to Jackson, and $269.5 billion of IFRS policyholder liabilities (as of 31 December 2019).
About Prudential plc
Prudential plc is an Asia-led portfolio of businesses focused on structural growth markets. The business helps individuals to de-risk their lives and deal with their biggest financial concerns through life and health insurance, and retirement and asset management solutions. Prudential plc has 20 million customers and is listed on stock exchanges in London, Hong Kong, Singapore and New York. 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, nor with the Prudential Assurance Company, a subsidiary of M&G plc, a company incorporated in the United Kingdom.
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