Prudential UK subsidiary Prudential Assurance Company (PAC) has signed an agreement with Discovery Group Europe to divest its 25% equity stake in the PruHealth and PruProtect joint venture (JV), for £155m in cash.
In the JV, PAC’s minority stake represents a financial investment in the UK protection market, with Discovery providing the major part of operating functions.
The deal is said to allow Prudential UK to realize its investment at attractive terms, and will provide the company with a strategic option to re-enter this market in due course.
Prudential UK will extend its support to Discovery to run the business for a transitional period.
Prudential UK, Europe and Africa chief executive Jackie Hunt said: "Prudential is proud to have built a successful UK health and protection business in partnership with Discovery over the past ten years.
"This success has enabled us to divest our stake in PruHealth and PruProtect on attractive terms for Prudential’s shareholders.
"The transaction will also give us the strategic and commercial flexibility to consider operating freely in the UK protection market in due course."
Prudential offers and financial services through its subsidiaries and affiliates across the globe, and has £457bn in assets under management.
Image: Prudential offices in King’s Road Reading. Photo: courtesy of Andrew Smith.