25 Apr 2001
Prudential plc to acquire Allstate’s Life Operations in Indonesia and Philippines
Prudential plc ("Prudential") announced today that it has signed a sale and purchase agreement to acquire Allstate's majority holdings in Pt Asuransi Jiwa Allstate, Indonesia and Allstate Life Insurance Company of the Philippines. The deal is subject to regulatory approvals and is expected to complete in the second quarter of this year. The net assets being acquired by Prudential are US$7.5m (as at 31 December 2000).
Allstate established the Pt Asuransi Jiwa Allstate and Allstate Life Insurance Company operations in 1997/1998 and have been building nationwide tied and general agency distribution capabilities. Their products are primarily savings related and the combined businesses have approximately 14,000 policyholders, 4,400 agents and 230 staff.
This acquisition continues Prudential's planned and focused expansion strategy in Asia. Dan Bardin, Prudential Corporation Asia's Managing Director, South Asia, commented: "This is a great opportunity for us as Allstate and Prudential have similar cultures with highly motivated staff and agents, innovative products and superior customer service. Combining these businesses gives us a much stronger platform to continue building top quality operations in the very important Indonesian and Philippine markets."
Allstate's International Executive Vice President and Managing Director, Lawrence Moews added: "We have been pleased with the growth of these two companies in Indonesia and the Philippines supported by their entrepreneurial distribution channels and enthusiastic staff. However, after a review of our overall business strategy, we have decided to focus resources on our core domestic growth initiatives in the US. We are confident Prudential's excellent track record and experience in Asia will take these operations to the next level of their development."
Mark Tucker, Chief Executive of Prudential Corporation Asia, concluded: "Prudential is a great believer in the tremendous potential of the Asian retail financial services markets. These acquisitions are another sign of our strong financial position and ongoing commitment to Indonesia and The Philippines".
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Notes to Editors:
Prudential has had operations in Asia since 1923. It is now one of the region's leading life insurers with operations in 11 countries including Prudential BancBali in Indonesia and Prudential Life of UK in the Philippines. It has a clearly stated strategy of looking for high value adding opportunities to continue building scale in its chosen markets.
The Allstate Corporation is the United States' largest publicly held personal lines insurer. It provides insurance products to more than 14 million households and has approximately 13,000 exclusive agents in the United States and Canada. Allstate Financial Group includes the businesses that provide life insurance, retirement and investment products.