BRITISH insurer Prudential is evaluating a potential listing of its Indian joint venture, ICICI Prudential Asset Management, which will involve the partial sale of its shares.
The transaction is subject to market conditions, requisite approvals and other considerations, said the Asia-focused insurer on Wednesday (Feb 12).
If the deal goes through, net proceeds from the divestment will be returned to shareholders, noted Prudential, adding that it will provide further updates at an appropriate time.
“India is a strategically important market for Prudential with compelling growth prospects. We will continue to explore opportunities to grow our businesses in the market,” said the company.
Last December, the insurer was reportedly considering options including selling a minority stake in its asset manager Eastspring Investments to help expand the business.
Prudential was said to be working with a financial adviser on a review of Eastspring. A potential stake sale could value Singapore-based Eastspring at about US$3 billion, indicated the Bloomberg report.
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It noted that one option includes selling about 30 per cent of Eastspring and forming a partnership that would help it diversify in areas such as private credit and assets in US dollar-denominated assets.
Prudential has reportedly started sounding out prospective suitors, including other investment firms.
For the nine months ended September 2024, Prudential recorded new business profit of US$2.3 billion, up 11 per cent on a constant exchange-rate basis and including economic impacts.
Excluding economic impacts, new business profit on a constant exchange-rate basis for the period would have been up 9 per cent.
The insurer said its multi-channel distribution model has driven broad-based new business profit growth, including in Greater China, Asean and Africa.
Annual premium equivalent (APE) sales – a measure of new business activity – rose 7 per cent on a constant exchange-rate basis to US$4.6 billion in the nine months ended September.
The increase in APE was driven by growth from Hong Kong, mainland China and Thailand, with the level of growth moderating in Taiwan, said Prudential.
Shares of Prudential ended Wednesday flat at US$8.20 on the Singapore Exchange.
