Prudential merges UK fund management with insurance unit
UK-based life insurance group Prudential said on Aug. 10 that it is merging its Prudential UK & Europe unit with its asset manager M&G to form a leading savings and investments business.
The two businesses already collaborate closely, the company noted. M&G manages most of Prudential’s UK life assets, including two-thirds of its PruFund. Prudential UK & Europe is a provider of managed funds through PruFund.
Through this new combined business – which is to be called M&G Prudential – the group believes it will be able to invest more efficiently in the growth of the business, including the improvement of customer service through new digital channels.
Prudential said the combined M&G Prudential business manages £332 billion in assets for over 6 million customers and employs more than 9,000 people, according to an Aug. 10 Reuters report.
"We have teams with highly complementary skill sets ... We will be able to use the benefits of that scale," Prudential's chief executive Mike Wells reportedly said, adding that the management team of the combined M&G Prudential business would begin working together immediately.
Prudential will spend around £250 million on the reorganisation and aims to achieve cost savings of around £145 million per year by 2022.
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