Prudential actively exploring options for US unit Jackson amid market 'turmoil'

UK insurer Prudential has revealed that it is actively exploring a range of options for its US business Jackson along with the plan for a  minority initial public offering, citing "turmoil in public equity markets" due to the coronavirus outbreak.

Earlier this month, the insurer announced its plans to sell its stake in Jackson through a stock market listing, in a move intended to free up capital for expansion and diversification.

However, owing to the uncertainty created by the spread of COVID-19, the company is now seeking alternatives for its Michigan-based business that provides retirement products for industry professionals and their clients in the US.

"In light of continued turmoil in public equity markets, the Board is ensuring that, alongside preparations for a minority IPO, it continues to actively evaluate other options in relation to Jackson, driven by the focus and objectives that underline our strategic priorities," said Mike Wells, group chief executive of Prudential, in a statement.

Wells asserted that the business is "financially resilient" despite extreme market volatility.

He said: “While the full consequences of Covid-19 are still emerging, Prudential has a highly resilient business model and remains well placed to continue to create value for shareholders, and support distribution partners and customers. This crisis is impacting families and individuals in every community we serve across the world, and all of us at Prudential want those people to know that we will be there for them now and in the future."

Finally, Wells noted that the company's board is "unambiguously clear on the strategic priorities for the Group: firstly, to enable Prudential’s investors to benefit to the fullest extent possible from the opportunity presented by Prudential’s business in Asia; and secondly, to pursue a path for an independent Jackson, while ensuring that, through a combination of diversifying its business mix and the necessary strengthening of its standalone capital position, it retains the strong credit rating that its current and future customers require."