To release reserves tied up in the business and boost capital surplus
British life insurer, Prudential has sold its Taiwanese agency business to China Life Insurance, releasing reserves tied up in the business and boosting its capital surplus, reported Reuters.
Prudential, which announced the sale of the unit for a nominal sum in February, said that the move would add £800 million ($1.3 billion) to the £2 billion Insurance Groups Directive (IGD) capital surplus it had on May 14.
Many British insurers have taken steps to multiply capital in recent months, after fears over the impact of rising corporate defaults and sliding asset values hit their shares.
Tidjane Thiam, Chief Financial Officer, Prudential, said: We are focused on capital preservation and on profitable and capital efficient growth in all our markets. He further stated that Prudential remained committed to its remaining insurance business in Taiwan. Prudential retains a presence in the country through its unit PCA Life Assurance Company which distributes insurance through Standard Life and E.Sun.”