By Sabela Ojea

 

Prudential PLC on Wednesday said that it is preparing for a minority initial public offering of its U.S. arm, Jackson National Life Insurance Company.

Chairman Paul Manduca said, for the past nine months, the company has been considering the best way to introduce a third party to finance Jackson and has come to the conclusion that the best way to do it is "to seek a listing of Jackson in the U.S. in due course, subject to market conditions."

The London-listed insurer said it has already taken management actions on the public offering direction and its attention is now set on gaining the engagement of key stakeholders.

It said an update on the U.S. listing will be given on Aug. 11.

The U.S. is the world's largest retirement market and Jackson is looking at diversifying its product range and distribution network, Prudential added.

"Over time, this is expected to lead to a more balanced mix of policyholder liabilities and enhance statutory capital and cash generation," Jackson Chairman and Chief Executive Michael Falcon said.

Jackson's operating profit increased by 20% to $3.07 billion in 2019, Prudential said.

Shares at 0918 GMT were up 32.50 pence, or 3.0%, at 1,131.00 pence.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

 

(END) Dow Jones Newswires

March 11, 2020 05:57 ET (09:57 GMT)

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