In a statement to the London Stock Exchange this morning, Prudential says the transaction “will enable Prudential UK to realise its investment [in the PruHealth and PruProtect joint venture] at attractive terms while providing full strategic optionality to re-enter the market in due course”.
Prudential UK, Europe & Africa chief executive Jackie Hunt says: “Prudential is proud to have built a successful UK health and protection business in partnership with Discovery over the past 10 years. This success has enabled us to divest our stake in PruHealth and PruProtect on attractive terms for our shareholders.
“The transaction will also give us the strategic and commercial flexibility to consider operating freely in the UK protection market in due course. This would be fully in line with our stated strategy of developing the UK business and leveraging the group’s global expertise in risk-focused products.”
The PruHealth proposition was launched as a joint venture between Discovery and Prudential in October 2004, while PruProtect was launched in September 2007.