UK insurer Prudential has announced that its US business, Jackson National Life (Jackson), will fully separate from the group via a demerger in the second quarter of 2021.
The demerger, also known as a spin-off in the US, will lead to a significantly earlier separation of Jackson than would have been possible through a minority IPO and future sell-downs, which was reported early in 2020.
At the time of the spin-off, Prudential intends to retain a 19.9% interest in Jackson that it will fully divest over time.
Prudential also announced the appointment of Steven A. Kandarian as non-executive chair of Jackson’s Board of Directors.
Kandarian, the former Chief Executive Officer of MetLife, will assume his new role on February 1, 2021, with additional appointments of independent directors for Jackson to be announced soon.
“As we move closer to the demerger, Jackson continues its core focus on providing industry leading products and services to our clients, managing risk and generating capital returns for shareholders,” said Michael Falcon, CEO of Jackson.
“Steve brings significant insurance sector experience to Jackson that will serve our firm and stakeholders well. We are excited to have him on board and look forward to benefiting from his insights and guidance in years to come.”
Kandarian also commented: “I am honored to lead Jackson’s board as non-executive chair at this pivotal time. Jackson is a market leader in helping U.S. investors meet their retirement income needs and I look forward to supporting Jackson’s growth and success as an independently listed company.”
“Our priorities as a Group remain, first, to ensure our investors fully benefit from the opportunities of Asia and, second, to pursue, at pace, a fully independent Jackson,” added Mike Wells, Group chief executive of Prudential plc.
“The demerger we are announcing today will significantly accelerate Prudential’s transformation into a business purely focused on profitable growth in Asia. I am delighted that Steve has agreed to join as Jackson chairman. He brings an unrivaled track-record in the U.S. life insurance sector, and I am more confident than ever that Jackson will flourish as a separate business.”