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Insurance

Prudential to split Asian and US businesses amid activist's pressure

Insurer to offer IPO for Jackson after Third Point presses company on share value

Third Point says Prudential's shares have lagged those of rival AIA Group's by 80% over the past five years. Both companies trade on the Hong Kong Stock Exchange.   © Reuters

HONG KONG -- Prudential PLC said on Wednesday it planned a partial public offering of its U.S. business, falling short of the full separation from its remaining Asian unit that an activist investor has demanded.

The 172-year-old insurer said its U.S. business needs additional capital, and that the U.S. unit will sell a minority stake through an initial public offering as it revealed a 20% rise in full-year operating profit of $5.31 billion. However, the company said the current coronavirus outbreak has dampened sales momentum in Hong Kong and China, which will hurt new business profit in the two markets.

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