The labours of Tucker

16 Jan 2007

Investors have been calling for the insurer s boss to do something about its underperforming UK life business. Seeking to release the £10bnodd of surplus assets in the life fund is an easy, if overdue, first step. The next moves will be harder.

This content is for Subscribers only

Context News

Prudential may follow rival UK life assurer Aviva in seeking to release some or all of the £8bn£10bn of surplus assets in its life fund, although no decision is understood to have been taken.

These are assets that have built up in the fund that Pru does not need to meet its obligations to policyholders. Pru would need the approval of the Financial Services Authority to release the assets, which could then be distributed to beneficiaries – the group's shareholders and policyholders.

Aviva has already begun the process of seeking to release £3bn of assets tied up in its surplus estate.

Mark Tucker, chief executive of the Pru, has been under pressure to pep up the performance of the group's UK life business. Pru raised £1bn two years ago to invest in the business.

Context News

Email a friend

Please complete the form below.

Required fields *