Prudential is to demerge its UK and European business M&G Prudential, resulting in two separately listed companies.
After the merger, shareholders will hold interests in both Prudential and M&G Prudential.
The division of the group will see Prudential focus outside the UK on the US and Asian markets.
Prudential also announced today the sale of £12bn of its annuity portfolio to Rothesay Life.
The annuity sale is the largest of its kind in the UK and covers 400,000 policyholders. The transaction has been initially set up as a reinsurance contract and is expected to lead to a transfer of the portfolio by the end of 2019.
Prudential group chief executive Mike Wells says: “Following separation, M&G Prudential will have more control over its business strategy and capital allocation.”
Wells says: “This will enable it to play a greater role in developing the savings and retirement markets in the UK and Europe through two of the financial sector’s most trusted brands, while Prudential plc will be able to focus on the attractive returns and growth potential of its market-leading businesses in Asia and the US.”
Prudential announced in August last year it was merging its asset manager M&G with its wider UK and Europe business.