British insurance major Prudential is set to start a split of its UK business from the group's Asian and American operations, which will create a new FTSE 100 company worth up to £7bn.
The new British entity will be named M&GPrudential, while the other half will be known as Prudential plc and will include the Asian operation based in Hong Kong, a smaller business in Africa, and US retirement business Jackson National Life, according to the FT.
Analysts expect Prudential to give a firm timetable for the split alongside half-year results on Wednesday and anticipate it could be finalised as early as autumn.
I believe we have the right capabilities and experience to grow this business at scale"
Following completion of the demerger, Prudential plc will be about five times bigger than M&GPrudential. The move to separate the UK business was first announced by Prudential CEO Mike Wells' in March last year.
Post-split, existing investors will own shares in both Prudential and M&GPrudential.
About two years ago, Prudential merged its UK insurance business with fund manager M&G Investments and created M&GPrudential.
The UK business has long been accepted the low-growth, cash generative part of the group; however, CEO John Foley wants to change that perception.
"We are in great shape to use the freedom of demerger to grow our business . . .[I] believe we have the right capabilities and experience to grow this business at scale," he said at an investor day in July, as reported by the FT.