Prudential UK & Europe has announced its decision to merge with M&G to form M&G Prudential.

The new entity will work to provide a savings and investments business targeting growing customer demand for financial solutions. It will manage £332bn of assets for over six million customers, in the UK and internationally, having quadrupled its total external assets since 2008.

M&G Prudential will M&G’s active investment expertise with Prudential UK & Europe’s capabilities in volatility-adjusted savings and liability-driven investment to provide more choice for customers across both brands, Prudential said.

The business will also look to develop and fund joint product propositions as well as building a new digital service to meet customer needs.

M&G and Prudential’s with-profits and shareholder businesses will share investment and associated cost savings. Shareholders are expected to contribute c£250m towards the investment and to benefit from cost savings of c£145m per annum by 2022, excluding revenue synergies, Prudential outlined.

Prudential UK & Europe chief executive John Foley will become chief executive of M&G Prudential and will remain a member of the Prudential plc board. M&G chief executive Anne Richards will remain in the role at M&G and will become a member of the Prudential board, also. Richards and the current Prudential UK & Europe CEO Insurance will become deputy chief executives of M&G Prudential.

John Foley, Chief Executive of M&G Prudential, said: “I look forward to working with the teams across both sides of the business to develop the products and capabilities that will help us to continue to lead the fast-changing savings and investments market. Prudential UK&E and M&G both offer well designed solutions which help investors meet their most important financial goals. Combining their complementary strengths allows us to provide greater choice to a wider range of customers.”

Anne Richards, Chief Executive of M&G, said: “This is an exceptional opportunity to bring together M&G’s extensive investment capabilities and Prudential UK&E’s expertise in balance sheet management. It will enable our investment teams to offer their expertise to a wider range of customers and across a broader range of investment and savings formats, while continuing to provide our current clients with the same high level of service.”

Mike Wells, Prudential plc Group Chief Executive, said: “M&G and Prudential UK&E have a long history of collaboration and we are fortunate to have two highly respected brands. Combining these businesses will allow us to better leverage our considerable scale and capabilities.”

Further details regarding the merger will be presented at Prudential’s Investor Conference on 16 November 2017.

Share Story: