UK-based financial services group Prudential, through its subsidiary Prudential Holdings, has entered into an agreement with SBI Holdings to dispose of its closed book life insurance business PCA Life Insurance in Japan, for $85m.

The life insurer has not revealed the time frame for closing of the transaction, although it said that the deal is pending for concerned regulatory approvals.

Describing the planned sale as consistent with its strategy, Prudential said that the sales proceedings will be allocated to markets where it is well positioned to garner attractive long-term returns for shareholders.

In February 2010, the PCA Life Japan closed underwriting new business.

Both firms have agreed to fully co-operate with each other to ensure a smooth transition and no policy holders of PCA Life Japan could face any deficiency in service levels.

Through its Asian asset management operation Eastspring Investments, Prudential will remain committed to the Japanese market and its business in the country will continue to be an important driver of its growth.

With £405bn in assets under management as at 31 December 2012, Prudential delivers insurance and financial services through its subsidiaries and affiliates across the globe.

Headquartered in Tokyo, Japan, SBI Holdings operates financial services and asset management businesses and serves more than 15 million customers, through over 140 subsidiaries and more than 5,000 employees.