UK insurer Prudential has finally selected and appointed Paul Manduca as its new chairman, which will be effective from 2 July 2012.

Paul Manduca will replace Harvey McGrath, who decided to leave the firm after being criticized for failing to win a £22bn ($34bn) bid for Asian insurer AIA in 2010.

The UK’s Financial Services Authority has approved Manduca’s appointment and will be followed by the appointment of a new senior independent director.

Since 2011, Manduca has been the Prudential’s senior independent director and most recently as chairman of Aon UK.

Having founded Threadneedle Asset Management Limited in 1994, Manduca has acted as chief executive of both Rothschild Asset Management and Deutsche Asset Management.

Between 1994 and 1999, Manduca served as director at Eagle Star and Allied Dunbar and also held the position of chairman of JPM European Smaller Companies Investment Trust from 2005 as well as of Henderson Diversified Income from 2007.

Recently, a third of Prudential shareholders have voted against the firm’s executive pay plans.