Prudential has reached an agreement to sell its life insurance subsidiary in Korea, PCA Life Insurance Co, to Korean firm Mirae Asset Life Insurance Co.
The UK-based financial services group announced the deal on the the London Stock Exchange today, for an agreed fee of KRW170bn (equivalent to £119m). The transaction is subject to regulatory approval.
The company said in a statement that the proposed sale is “consistent with Prudential’s strategy of allocating its capital to markets where it is well positioned to generate attractive long-term returns for its shareholders”.
PCA Life Korea and Mirae will work together to ensure a smooth transition. PCA Life Korea will continue to fulfil its policyholder obligations and maintain service to customers until the sale has been completed.
Prudential said that it remains committed to the Korean market through Eastspring Investments, its Asian asset management business. The firm added that it is “well positioned” in Asia, with, according to Prudential statistics, top three positions in eight out of 12 life insurance markets and through Eastspring Investments, one of the region’s largest asset managers.