10 Nov 2016
Prudential plc announces the sale of its life insurance business in Korea
Prudential plc (“Prudential”), the UK-based financial services group, has reached an agreement to sell 100% of its life insurance subsidiary in Korea, PCA Life Insurance Co., Ltd ("PCA Life Korea"), to Mirae Asset Life Insurance Co., Ltd. ("Mirae"), for KRW170 billion (equivalent to £119 million1). The transaction is subject to regulatory approval.
The proposed sale is consistent with Prudential’s strategy of allocating its capital to markets where it is well positioned to generate attractive long-term returns for its shareholders.
PCA Life Korea and Mirae will work together to ensure a smooth transition. PCA Life Korea will continue to fulfil its policyholder obligations and maintain high levels of service to customers until the sale has been completed.
Prudential remains committed to the Korean market through Eastspring Investments, its Asian asset management business.
Prudential is well positioned in Asia, with top three positions in eight out of 12 life insurance markets2 and through Eastspring Investments, one of the region's largest asset managers.
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1 KRW/GBP exchange rate of 1,433 at 9 November 2016 used (Source: Bloomberg). The consideration is denominated in KRW.
2 Based on latest information (or as at HY16 whichever is latest) available. Sources include formal (competitors results release, local regulators and insurance associations) and informal (industry exchange) market share data. Ranking based on new business (APE or weighted FYP depending on availability of data), excluding Korea.
Notes to Editors:
About Prudential plc
Prudential plc and its affiliated companies constitute one of the world’s leading financial services groups, serving around 24 million insurance customers, with £562 billion of assets under management (as at 30 June 2016). Prudential plc is incorporated in England and Wales and is listed on the 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.
About Mirae Asset Life Insurance Co., Ltd
Mirae Asset Life Insurance Co., Ltd. was established in 1988, and is the sixth largest life insurance company in Korea with over KRW 28 trillion in total assets. As part of the Mirae Asset group, Mirae Asset Life Insurance offers whole life, term and health insurance, along with variable insurance, retirement pension plan, fund and trust products to deliver customer focused services. Mirae Asset Life Insurance’s “two-track” strategy lies in its commitment to offering protection-type insurance and fee based businesses, and its cumulative returns on variable insurances for the last three and five years were the highest among domestic life insurance companies. Mirae Asset Life Insurance is listed on the Korea Stock Exchange.
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