Partner Article

Prudential complete £417m acquisition of US insurance firm

Financial services group Prudential have completed the acquisition of SRLC America Holding Corp. for £417m.

Prudential’s wholly-owned subsidiary Jackson National Life Insurance carried out the transaction as the firm purchased U.S life insurance outfit SRLC.

The deal was initially announced in May 2012 for a consideration of £398m, and the final price was based on an updated estimate of the company balance sheet.

Jackson National Life Insurance are a top provider of retirement solutions, while SRLC was incorporated in March last year to allow for internal restructuring of insurance provider Swiss Re Ltd, and was dormant until July 2011.

Prudential reported an operating profit of £1,162m, with a 13% increase year-on-year, while growth in Asia bolstered the business.

Tidjane Thiam, Group Chief Executive of Prudential commented on the half-year results released on 10th August: “In the US we continue to perform well and Jackson delivered IFRS operating profit of £442 million, a 30 per cent increase from 2011 and a cash contribution to Group of £247 million, lower than 2011 which benefited from an exceptional release of surplus by Jackson.”

He continued: “We remain confident in our ability to grow earnings over the long-term while continuing to create value for our shareholders.”

This was posted in Bdaily's Members' News section by Miranda Dobson .