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Pru to pick up 25% of Sesame and Millfield business with tie

A quarter of Sesame and Millfield&#39s business will be transacted with Prudential through its multi-tie arrangements, says group chief executive Jonathan Bloomer.

Pru has raised £1bn through a rights issue to provide it with a war chest to build tie-ups and fund the expansion of its UK business.

It is looking to add to its multi-tie agreements and double its IFA salesforce over the next two quarters. The company also says it is looking at acquiring a number of closed back books of business.

Bloomer says further multi-ties are being negotiated, including deals with high-street banks such as Barclays.

Up to £200m of the funds raised by the rights issue will be used to strengthen Pru&#39s regulatory capital position ahead of the EU Financial Groups Directive which comes into effect on January 1.

Although some funds will be directed toward its Asian arm, it will leave Pru with up to £750m to spend on its UK business.

The bulk of this capital will be used to back new unit-linked business, which is up by 108 per cent year on year.

Pru will double its IFA salesforce from 50 to 100 by the end of the year and is strengthening its IFA support staff.

Bloomer says: “On average, we expect to get about 25 per cent of Sesame&#39s business and the same with Millfield. We are also in discussions with banks about multi-ties.”

•Depolarisation will start on December 1 this year with a six-month transition period, says the FSA – as predicted in Money Marketing earlier this month. The FSA will be publishing final rules on depolarisation on December 1. Firms will have until June 1 to implement the rules.

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