Insurance Industry News: Prudential shifting east?
Prudential, the UK's largest insurer, requested that its shares be suspended this morning pending an announcement. Already with significant Asia Pacific business, the company has this morning confirmed in a statement that it is negotiating to buy AIG's AsiaPac business. But simultaneously, a second announcement....
The rumours over Prudential's aim of buying AIG's Asia Pacific business have been gaining ground all weekend with some media saying that the price will be USD35,000 million.That sounds like a lot for a fire sale.
AIG's back in the news for all the wrong reasons: despite having had bucket loads of US taxpayer money shoved down various black holes, the company is still bleeding badly.
Last week AIG admitted to yet more money going missing. Well, not missing exactly but lost all the same. This time another 8,800 million.
Prudential and AIG declined to comment and then another rumour started.
This one said that Prudential was considering the sale of its UK Life business. The rumours said that the proposed buyer was Resolution.
This morning Resolution issued its own statement, which The Pru happily posted in its own regulatory notices column. No way, no how, it says. The two companies deny even talking about such a deal and Resolution dismisses the rumours as "press speculation."
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