UK's largest insurer by market value, Prudential Plc, decided to sell its life insurance firm in Japan. SBI Holdings Inc, a Tokyo-headquartered company, would buy the unit for US$85 million.
The sale of PCA Life Japan was still subject to the approval of regulators. The unit stopped writing latest business since February 2010. It also closed to new patrons. The statement came today from Prudential's office in London.
"The proposed sale is consistent with Prudential's strategy of allocating its capital to markets where it is well positioned to generate attractive long-term returns for shareholders," Prudential stated.
The life insurer was concentrated on corporations in fast-growing economies in south east Asia. This included Hong Kong, Indonesia and Philippines. The company said that Prudential remained committed to the Japanese market. Through Eastspring Investments, Prudential's asset-management corporation in Asia, it was able to provide services in Japan.
Prudential stocks climbed 0.5% to 1,131 pence at 12:40pm in London exchange. The company was valued to be around GBP29 billion or US$44 billion.
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